I-3 - Taxation Act

Section 691.1 Disposition versions

2021-06-02

691.1. Despite section 688, the rules set out in section 688.1 apply where any particular property of a particular personal trust or a particular prescribed trust (other than an excluded property of the particular trust) is distributed by the particular trust to a taxpayer who is a beneficiary under the particular trust and where

(a)  the distribution was made as consideration for all or any part of the taxpayer’s capital interest in the particular trust;

(b)  section 467 was applicable, or would have been applicable if it were read without reference to “while the transferor is resident in Canada” and if section 467.1, as it read in its application before 21 March 2013, were read without reference to its paragraph c.2, or section 597.0.6 was applicable, or would have been applicable if the first paragraph of that section were read without reference to its subparagraph a, at a particular time in respect of any property of

i.  the particular trust, or

ii.  a trust the property of which included a property that, through one or more dispositions to which section 692.8 applied, became a property of the particular trust, and the property was not, at any time after the particular time and before the distribution, the subject of a disposition for proceeds of disposition equal to the fair market value of the property at the time of the disposition;

(c)  the taxpayer is neither

i.  the person, other than a trust described in subparagraph ii of paragraph b, who directly or indirectly transferred the particular property, or a property for which the particular property was substituted, to the particular trust, nor

ii.  an individual in respect of whom section 454 would be applicable on the transfer of capital property by the person described in subparagraph i; and

(d)  the person described in subparagraph i of paragraph c was in existence at the time the particular property was distributed.

For the purposes of the first paragraph, “excluded property” of a trust means property owned by the trust at, and distributed by the trust after, the end of 31 December 2016, if

(a)  the trust was not, in its first taxation year that begins after 31 December 2016, a trust described in subparagraph c.1 of the second paragraph of section 274.0.1; and

(b)  the property is a property that would be the trust’s principal residence (within the meaning of section 274.0.1) for the taxation year in which the distribution occurs if

i.  the second paragraph of section 274.0.1 were read without reference to its subparagraph c.1, and

ii.  the trust designated the property, in accordance with section 274.0.1, as its principal residence for the taxation year.

1990, c. 59, s. 247; 2001, c. 7, s. 82; 2003, c. 2, s. 182; 2015, c. 21, s. 226; 2015, c. 36, s. 38; 2021, c. 14, s. 57.

2015-12-04

691.1. Notwithstanding section 688, the rules set out in section 688.1 apply where any particular property of a particular personal trust or a particular prescribed trust is distributed by the particular trust to a taxpayer who is a beneficiary under the particular trust and where

(a)  the distribution was made as consideration for all or any part of the taxpayer’s capital interest in the particular trust;

(b)  section 467 was applicable, or would have been applicable if it were read without reference to “while the transferor is resident in Canada” and if section 467.1, as it read in its application before 21 March 2013, were read without reference to its paragraph c.2, or section 597.0.6 was applicable, or would have been applicable if the first paragraph of that section were read without reference to its subparagraph a, at a particular time in respect of any property of

i.  the particular trust, or

ii.  a trust the property of which included a property that, through one or more dispositions to which section 692.8 applied, became a property of the particular trust, and the property was not, at any time after the particular time and before the distribution, the subject of a disposition for proceeds of disposition equal to the fair market value of the property at the time of the disposition;

(c)  the taxpayer is neither

i.  the person, other than a trust described in subparagraph ii of paragraph b, who directly or indirectly transferred the particular property, or a property for which the particular property was substituted, to the particular trust, nor

ii.  an individual in respect of whom section 454 would be applicable on the transfer of capital property by the person described in subparagraph i; and

(d)  the person described in subparagraph i of paragraph c was in existence at the time the particular property was distributed.

1990, c. 59, s. 247; 2001, c. 7, s. 82; 2003, c. 2, s. 182; 2015, c. 21, s. 226; 2015, c. 36, s. 38.

2015-10-21

691.1. Notwithstanding section 688, the rules set out in section 688.1 apply where any particular property of a particular personal trust or a particular prescribed trust is distributed by the particular trust to a taxpayer who is a beneficiary under the particular trust and where

(a)  the distribution was made as consideration for all or any part of the taxpayer’s capital interest in the particular trust;

(b)  section 467 was applicable, or would have been applicable if it were read without reference to “while the transferor is resident in Canada”, at a particular time in respect of any property of

i.  the particular trust, or

ii.  a trust the property of which included a property that, through one or more dispositions to which section 692.8 applied, became a property of the particular trust, and the property was not, at any time after the particular time and before the distribution, the subject of a disposition for proceeds of disposition equal to the fair market value of the property at the time of the disposition;

(c)  the taxpayer is neither

i.  the person, other than a trust described in subparagraph ii of paragraph b, who directly or indirectly transferred the particular property, or a property for which the particular property was substituted, to the particular trust, nor

ii.  an individual in respect of whom section 454 would be applicable on the transfer of capital property by the person described in subparagraph i; and

(d)  the person described in subparagraph i of paragraph c was in existence at the time the particular property was distributed.

1990, c. 59, s. 247; 2001, c. 7, s. 82; 2003, c. 2, s. 182; 2015, c. 21, s. 226.

2006-03-01

691.1. Notwithstanding section 688, the rules set out in section 688.1 apply where any particular property of a particular personal trust or a particular prescribed trust is distributed by the particular trust to a taxpayer who is a beneficiary under the particular trust and where

(a)  the distribution was made as consideration for all or any part of the taxpayer’s capital interest in the particular trust;

(b)  section 467 was applicable at a particular time in respect of any property of

i.  the particular trust, or

ii.  a trust the property of which included a property that, through one or more dispositions to which section 692.8 applied, became a property of the particular trust, and the property was not, at any time after the particular time and before the distribution, the subject of a disposition for proceeds of disposition equal to the fair market value of the property at the time of the disposition;

(c)  the taxpayer is neither

i.  the person, other than a trust described in subparagraph ii of paragraph b, who directly or indirectly transferred the particular property, or a property for which the particular property was substituted, to the particular trust, nor

ii.  an individual in respect of whom section 454 would be applicable on the transfer of capital property by the person described in subparagraph i; and

(d)  the person described in subparagraph i of paragraph c was in existence at the time the particular property was distributed.

1990, c. 59, s. 247; 2001, c. 7, s. 82; 2003, c. 2, s. 182.