I-3 - Taxation Act

Section 597 Disposition versions

2015-12-04

597. A trust is deemed to cease to be resident in Canada at the earliest time at which there is neither a resident contributor to the trust nor a resident beneficiary under the trust in a particular taxation year (determined without reference to section 785.2) of the trust if

(a)  the particular taxation year immediately follows a taxation year of the trust throughout which the trust was deemed under section 595 to be resident in Canada for the purpose of computing its income; and

(b)  at a specified time in the particular taxation year, the trust

i.  is not resident in Canada,

ii.  is not an exempt foreign trust, and

iii.  has no resident contributor to it or resident beneficiary under it.

1975, c. 22, s. 164; 1987, c. 67, s. 127; 1990, c. 59, s. 210; 2015, c. 36, s. 28.

2006-03-01

597. A taxpayer resident in Canada, in computing at any time in a taxation year the adjusted cost base of his capital interest in a trust to which section 596 applies shall add any amount required by sections 580 and 582 to be included in computing his income for the year or a preceding year in respect of that interest, or that would have been so required to be included but for sections 316.1, 456 to 458, 462.1 to 462.24 and 466 to 467.1, and deduct any amount deducted by him in that respect in computing his income for such year by reason of sections 581 and 583 or that would have been so deductible by him but for sections 316.1, 456 to 458, 462.1 to 462.24 and 466 to 467.1.

1975, c. 22, s. 164; 1987, c. 67, s. 127; 1990, c. 59, s. 210.