I-3 - Taxation Act

Section 663.4 Disposition versions

2009-05-15

663.4. If an amount (in this section referred to as the “SIFT trust’s non-deductible distributions amount for the taxation year”) is determined under subparagraph iv of paragraph a of section 657 for a taxation year, in relation to a SIFT trust, the following rules apply:

(a)  each beneficiary under the SIFT trust to whom at any time in the year an amount became payable by the trust is deemed to have received at that time a taxable dividend that was paid at that time by a taxable Canadian corporation;

(b)  the amount of a dividend that, in accordance with subparagraph a, is deemed to have been received by a particular beneficiary at any time in a taxation year is equal to the amount determined by the formula

A/B × C; and

(c)  the amount of a dividend described in subparagraph a in relation to a beneficiary under the SIFT trust is deemed for the purposes of section 663 not to have become payable to the beneficiary.

In the formula in subparagraph b of the first paragraph,

(a)  A is the amount that became payable at the time determined under that subparagraph b by the SIFT trust to the particular beneficiary;

(b)  B is the aggregate of all amounts each of which is an amount that became payable at any time in the taxation year by the SIFT trust to a beneficiary; and

(c)  C is the SIFT trust’s non-deductible distributions amount for the taxation year.

2009, c. 5, s. 205.