I-3 - Taxation Act

Section 592.9 Disposition versions

2017-02-08

592.9. The rules to which section 592.8 refers in respect of a taxpayer resident in Canada in relation to a trust are the following:

(a)  the trust is deemed to be a corporation not resident in Canada that is resident in Australia and not to be a trust;

(b)  each particular class of fixed interests in the trust is deemed to be a separate class of 100 issued shares, of the capital stock of the corporation not resident in Canada, that have the same attributes as the interests of the particular class;

(c)  each beneficiary under the trust is deemed to hold the number of shares of each separate class described in paragraph b equal to the proportion of 100 that the fair market value, at the time referred to in section 592.8, 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;

(d)  the corporation not resident in Canada is deemed to be controlled by the taxpayer resident in Canada—a foreign affiliate of which is referred to in paragraph b of section 592.8 and is beneficially interested in the trust—that has the greatest equity percentage in the corporation not resident in Canada;

(e)  a particular foreign affiliate of the taxpayer in which the taxpayer has a direct equity percentage at a particular time, and that is not a controlled foreign affiliate of the taxpayer at that time, is deemed to be a controlled foreign affiliate of the taxpayer at that time if, at that time,

i.  the particular foreign affiliate has an equity percentage in the foreign affiliate referred to in paragraph b of section 592.8, or

ii.  the particular foreign affiliate is the foreign affiliate referred to in paragraph b of section 592.8; and

(f)  Chapter VI.2 does not apply in respect of the taxpayer in relation to the trust.

2017, c. 1, s. 146.