I-3 - Taxation Act

Section 666 Disposition versions

2009-05-15

666. A portion of a taxable dividend received by a trust, in a particular taxation year of the trust, on a share of the capital stock of a taxable Canadian corporation, is deemed, for the purposes of the second paragraph of section 497, the third and fourth paragraphs of section 686 and sections 738 to 745, not to have been received by the trust and is deemed, for the purposes of this Part, to be a taxable dividend on the share received by a taxpayer in the taxpayer’s taxation year in which the particular year ends if

(a)  an amount equal to that portion is designated by the trust, in respect of the taxpayer, in the trust’s fiscal return filed under this Part for the particular year and may reasonably be considered, having regard to all the circumstances including the terms and conditions of the trust arrangement, to be part of the amount that, because of any of sections 659, 661 and 662 or paragraph a of section 663, was included in computing the income for that taxation year of the taxpayer;

(b)  the taxpayer is in the particular year a beneficiary under the trust;

(c)  the trust is, throughout the particular year, resident in Canada; and

(d)  the aggregate of all amounts each of which is an amount designated, under this section, by the trust in respect of a beneficiary under the trust in the trust’s fiscal return filed under this Part for the particular year is not greater than the aggregate of all amounts each of which is the amount of a taxable dividend, received by the trust in the particular year, on a share of the capital stock of a taxable Canadian corporation.

1972, c. 23, s. 504; 1984, c. 15, s. 145; 1990, c. 59, s. 229; 1997, c. 3, s. 71; 2003, c. 2, s. 166; 2009, c. 5, s. 207.

2006-03-01

666. The portion of a taxable dividend received by a trust in a taxation year throughout which it was resident in Canada on a share of the capital stock of a taxable Canadian corporation that may reasonably be considered, having regard to the circumstances and the terms and conditions of the trust arrangement, to be part of the amount included, under any of sections 659 and 661 to 663, in computing the income of a beneficiary under the trust for a particular taxation year, is deemed, for the purposes of the second paragraph of section 497, the third and fourth paragraphs of section 686 and sections 738 to 745, not to have been received by the trust and is deemed, for the purposes of this Part, to be a taxable dividend on the share received by the beneficiary in the particular year from the corporation.

The presumptions in the first paragraph are valid only if the portion referred to in that paragraph has been exclusively designated by the trust, in its fiscal return for the year under this Part, in respect of the beneficiary.

1972, c. 23, s. 504; 1984, c. 15, s. 145; 1990, c. 59, s. 229; 1997, c. 3, s. 71; 2003, c. 2, s. 166.