I-3 - Taxation Act

Section 671 Disposition versions

2009-05-15

671. For the purposes of this section and sections 146.1, 671.1 and 772.2 to 772.13, an amount in respect of a trust’s income for a particular taxation year of the trust from a source situated in a foreign country, is deemed to be income of a taxpayer, for the taxation year of the taxpayer in which the particular year ends, from that source if

(a)  the amount 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 section 659 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 in respect of that source, 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 trust’s income for the particular year from that source.

1972, c. 23, s. 508; 1972, c. 26, s. 52; 1973, c. 18, s. 23; 1982, c. 5, s. 139; 1984, c. 15, s. 148; 1990, c. 59, s. 238; 1995, c. 63, s. 47; 2009, c. 5, s. 210.

2006-03-01

671. For the purposes of this section and sections 146.1, 671.1 and 772.2 to 772.13, such portion of a trust’s income for a taxation year throughout which it is resident in Canada from a source situated in a foreign country as can 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 section 659 or 663 in computing the income for a particular taxation year of a beneficiary under the trust is deemed, if that portion is exclusively designated by the trust in respect of the beneficiary in its fiscal return for the year under this Part, to be income of the beneficiary for the particular year from that source.

1972, c. 23, s. 508; 1972, c. 26, s. 52; 1973, c. 18, s. 23; 1982, c. 5, s. 139; 1984, c. 15, s. 148; 1990, c. 59, s. 238, 1995, c. 63, s. 47.