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I-3 - Taxation Act
Section 768
Disposition versions
768. Despite section 750, the tax payable under this Part for a taxation year by a trust (other than a qualified disability trust, a trust to which section 770 or 770.0.1 applies or a succession that is a graduated rate estate) is equal to the aggregate of
(a) the amount obtained by multiplying the percentage specified for the year in section 750.1.1 by its taxable income for the year; and
(b) if any of the conditions of paragraphs a to c of section 768.1 is met in respect of the trust for the taxation year, the amount determined by the formula
A − (B − C).
In the formula in subparagraph b of the first paragraph,
(a) A is the amount that would be determined under subparagraph b for the year if
i. the percentage applicable for the purpose of determining the tax payable by the trust for each taxation year referred to in subparagraph b were the percentage specified for that year in section 750.1.1, and
ii. the trust’s taxable income for a particular taxation year referred to in subparagraph b were reduced by the total of
(1) if the conditions of the third paragraph are met, the amount that was paid or distributed in satisfaction of all or part of an individual’s interest as a beneficiary under the trust,
(2) the portion of the tax payable by the trust for the particular taxation year under Part I of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) that can reasonably be considered to be attributable to an amount determined in accordance with subparagraph 1,
(3) the portion of the tax payable by the trust for the particular taxation year to a government of a province (other than Québec) in which the trust is resident for the particular taxation year that can reasonably be considered to be attributable to an amount determined in accordance with subparagraph 1, and
(4) the portion of the tax payable by the trust for the particular taxation year under this Part that can reasonably be considered to be attributable to an amount determined in accordance with subparagraph 1;
(b) B is the aggregate of all amounts each of which is the tax payable under this Part by the trust for a taxation year that precedes the taxation year referred to in the first paragraph if that preceding taxation year is
i. the first taxation year for which the trust was a qualified disability trust or, if it is later, the last taxation year for which section 768.1 applied to the trust, if applicable, or
ii. a taxation year that ends after the taxation year described in subparagraph i; and
(c) C is the aggregate of all amounts each of which is an amount determined under subparagraph 4 of subparagraph ii of subparagraph a in determining the value of A in the formula in subparagraph b of the first paragraph for the year.
The conditions to which subparagraph 1 of subparagraph ii of subparagraph a of the second paragraph refers are the following:
(a) the individual referred to in that subparagraph 1 was an electing beneficiary of the trust for the particular taxation year;
(b) the payment or distribution can reasonably be considered to have been made out of the trust’s taxable income for the particular taxation year; and
(c) the payment or distribution was made in a taxation year referred to in subparagraph b of the second paragraph.
768. Despite section 750, the tax payable under this Part for a taxation year by a trust (other than a qualified disability trust, a trust to which section 770 or 770.0.1 applies or a succession that is a graduated rate estate) is equal to the aggregate of
(a) the amount obtained by multiplying the percentage specified for the year in section 750.1.1 by its taxable income for the year; and
(b) if any of the conditions of paragraphs a to c of section 768.1 is met in respect of the trust for the taxation year, the amount determined by the formula
A – B.
In the formula in subparagraph b of the first paragraph,
(a) A is the amount that would be determined under subparagraph b for the year if
i. the percentage applicable for the purpose of determining the tax payable by the trust for each taxation year referred to in subparagraph b were the percentage specified for that year in section 750.1.1, and
ii. the trust’s taxable income for a particular taxation year referred to in subparagraph b were reduced by the total of
(1) if the conditions of the third paragraph are met, the amount that was paid or distributed in satisfaction of all or part of an individual’s interest as a beneficiary under the trust,
(2) the portion of the tax payable by the trust for the particular taxation year under Part I of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) that can reasonably be considered to be attributable to an amount determined in accordance with subparagraph 1,
(3) the portion of the tax payable by the trust for the particular taxation year to a government of a province (other than Québec) in which the trust is resident for the particular taxation year that can reasonably be considered to be attributable to an amount determined in accordance with subparagraph 1, and
(4) the portion of the tax payable by the trust for the particular taxation year under this Part that can reasonably be considered to be attributable to an amount determined in accordance with subparagraph 1; and
(b) B is the aggregate of all amounts each of which is the tax payable under this Part by the trust for a taxation year that precedes the taxation year referred to in the first paragraph if that preceding taxation year is
i. the first taxation year for which the trust was a qualified disability trust or, if it is later, the last taxation year for which section 768.1 applied to the trust, if applicable, or
ii. a taxation year that ends after the taxation year described in subparagraph i.
The conditions to which subparagraph 1 of subparagraph ii of subparagraph a of the second paragraph refers are the following:
(a) the individual referred to in that subparagraph 1 was an electing beneficiary of the trust for the particular taxation year;
(b) the payment or distribution can reasonably be considered to have been made out of the trust’s taxable income for the particular taxation year; and
(c) the payment or distribution was made in a taxation year referred to in subparagraph b of the second paragraph.
768. Despite section 750, the tax payable under this Part for a taxation year by an inter vivos trust, other than a mutual fund trust or a SIFT trust, is equal to the amount obtained by multiplying the percentage specified in section 750.1.1 by its taxable income for the year.
768. The tax payable under this Part by an inter vivos trust, other than a mutual fund trust or a SIFT trust, is the greater of the tax payable on its taxable income for a taxation year determined under section 750 and the amount obtained by multiplying the percentage specified in section 750.1 for the year by its taxable income for the year.
768. The tax payable under this Part by an inter vivos trust other than a mutual fund trust is the greater of the tax payable on its taxable income for a taxation year determined under section 750 and the amount obtained by multiplying the percentage specified in section 750.1 for the year by its taxable income for the year.
