I-3 - Taxation Act

Section 671.5 Disposition versions

2011-06-06

671.5. In this chapter,

“designated beneficiary” under a designated trust for a taxation year of the designated trust means a tax-liable beneficiary under the designated trust for the year or, if a beneficiary under the designated trust is a partnership, a tax-liable member of the partnership for the partnership’s fiscal period in which the designated trust’s taxation year ends, who has for the year, with any person or partnership with whom the beneficiary or the member is not dealing at arm’s length, a share of the aggregate of the income interests in the designated trust that is an amount of $5,000 or more, or a share of the aggregate of the income interests in the designated trust or of the aggregate of the capital interests in the designated trust that corresponds to at least 10% of the aggregate of the income interests or of the aggregate of the capital interests in the designated trust;

“designated trust” means a trust that is resident in Canada but outside Québec on the last day of a taxation year, but does not include a unit trust or a trust described in any of paragraphs a to e.1 of the definition of “trust” in subsection 1 of section 108 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

“tax-liable beneficiary” under a designated trust for a particular taxation year of the designated trust means a beneficiary under the designated trust who is

(a)  an individual who is resident in Québec on the last day of the individual’s taxation year in which the particular taxation year ends; or

(b)  a corporation that has an establishment in Québec at any time in the corporation’s taxation year in which the particular taxation year ends;

“tax-liable member” of a partnership for a fiscal period of the partnership in which ends a taxation year of a designated trust of which the partnership is a beneficiary, means a member of the partnership who is

(a)  an individual who is resident in Québec on the last day of the individual’s taxation year in which the fiscal period ends; or

(b)  a corporation that has an establishment in Québec at any time in the corporation’s taxation year in which the fiscal period ends.

For the purposes of the definitions of “tax-liable beneficiary” and “tax-liable member” in the first paragraph, the following rules apply:

(a)  if an individual dies or ceases to be resident in Canada in a taxation year, the last day of the individual’s taxation year is the day of the individual’s death or the last day on which the individual was resident in Canada; and

(b)  if an individual to whom the first paragraph of section 25 applies is a beneficiary under a designated trust or a member of a partnership that is a beneficiary under a designated trust, the individual is not a tax-liable beneficiary under the designated trust or a tax-liable member of the partnership, as the case may be, even though the individual is deemed to be resident in Québec on the last day of a taxation year for the purposes of the second paragraph of section 25.

2004, c. 21, s. 96; 2011, c. 6, s. 141.

2006-03-01

671.5. In this chapter,

“designated beneficiary” under a designated trust for a taxation year of the designated trust means a beneficiary under the designated trust or, where the beneficiary under the designated trust is a partnership, a member of the partnership, who has for the year, with any person or partnership with whom or with which the member is not dealing at arm’s length, a share of the aggregate of the income interests in the designated trust that is an amount of $5,000 or more, or a share of the aggregate of the income interests in the designated trust or of the aggregate of the capital interests in the designated trust that corresponds to at least 10% of the aggregate of the income interests or of the aggregate of the capital interests in the designated trust;

“designated trust” means a trust that is resident in Canada but outside Québec on the last day of a taxation year, but does not include a unit trust or a trust described in any of paragraphs a to e.1 of the definition of “trust” in subsection 1 of section 108 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement).

2004, c. 21, s. 96.