I-3 - Taxation Act

Section 660 Disposition versions

2006-03-01

660. For the purposes of section 659, the allocable amount for a preferred beneficiary under a trust in respect of the trust for a taxation year is

(a)  where the trust is, at the end of the year, an alter ego trust, a joint spousal trust, a post-1971 spousal trust or a pre-1972 spousal trust and a beneficiary, referred to in subparagraph a of the first paragraph of section 653 or in the definition of “pre-1972 spousal trust” in section 652.1, is alive at the end of the year, an amount equal to the trust’s accumulating income for the year, if the preferred beneficiary is a beneficiary so referred to, and, in any other case, nil;

(b)  where paragraph a does not apply and the preferred beneficiary’s interest in the trust is not solely contingent on the death of another beneficiary who has a capital interest in the trust and who does not have an income interest in the trust, the trust’s accumulating income for the year; and

(c)  in any other case, nil.

1972, c. 23, s. 498; 1973, c. 17, s. 76; 1975, c. 22, s. 185; 1977, c. 26, s. 71; 1978, c. 26, s. 111; 1994, c. 22, s. 232; 1995, c. 49, s. 236; 1997, c. 31, s. 66; 2003, c. 2, s. 164.