I-3 - Taxation Act

Section 597.8 Disposition versions

2015-12-04

597.8. If, because of section 597.7, this section applies at a particular time to a beneficiary under, or a particular person in respect of, a trust, for the purposes of sections 571 to 576.1, 578 and 579 to 583, paragraph a of section 597.1 and section 598, the following rules apply:

(a)  the trust is deemed to be at that time a corporation not resident in Canada

i.  controlled by each of the beneficiary and the particular person, and

ii.  having, for each particular class of fixed interests in the trust, a separate class of capital stock of 100 issued shares that have the same attributes as the interests of the particular class; and

(b)  each beneficiary under the trust is deemed to hold at that time a percentage of the number of shares of each separate class described in subparagraph ii of paragraph a equal to the percentage representing the proportion that the fair market value at that time of that beneficiary’s fixed interests in the corresponding particular class of fixed interests in the trust is of the fair market value at that time of all fixed interests in the particular class.

2015, c. 36, s. 33.