I-3 - Taxation Act

Section 768.1 Disposition versions

2017-02-08

768.1. The conditions to which subparagraph b of the first paragraph of section 768 refers in respect of a trust, for a particular taxation year, that was a qualified disability trust for a preceding taxation year, are the following:

(a)  none of the beneficiaries under the trust at the end of the particular taxation year was an electing beneficiary of the trust for a preceding taxation year;

(b)  the particular taxation year ended immediately before the trust ceased to be resident in Canada; and

(c)  an amount is paid or distributed in the particular taxation year to a beneficiary under the trust in satisfaction of all or part of the beneficiary’s interest in the trust unless

i.  the beneficiary is an electing beneficiary of the trust for the particular taxation year or a preceding taxation year,

ii.  the amount is deducted under paragraph a of section 657 in computing the trust’s income for the particular taxation year, or

iii.  the amount is paid or distributed in satisfaction of a right to enforce payment of an amount that was deducted under paragraph a of section 657 in computing the trust’s income for a preceding taxation year.

2017, c. 1, s. 204.