I-3 - Taxation Act

Section 688.1.1 Disposition versions

2015-10-21

688.1.1. If a trust that is resident in Canada for a taxation year makes in the taxation year one or more distributions of property in circumstances in which section 688.1 applies, the following rules apply:

(a)  the income of the trust for the year, determined without reference to paragraph a of section 657, is to be computed, for the purposes of that paragraph a and section 663, without regard to all of those distributions to persons not resident in Canada, including a partnership other than a Canadian partnership, except for distributions of cash denominated in Canadian currency, if the trust makes a valid election under subsection 2.11 of section 107 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 to have paragraph a of that subsection 2.11 apply in relation to all of those distributions; and

(b)  the income of the trust for the year, determined without reference to paragraph a of section 657, is to be computed, for the purposes of that paragraph a and section 663, without regard to all of those distributions, except for distributions of cash denominated in Canadian currency, if the trust makes a valid election under subsection 2.11 of section 107 of the Income Tax Act after 19 December 2006 to have paragraph b of that subsection 2.11 apply in relation to all of those distributions.

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph a or b of subsection 2.11 of section 107 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

2003, c. 2, s. 176; 2009, c. 5, s. 221; 2015, c. 21, s. 222.

2009-05-15

688.1.1. If a trust makes one or more distributions of property in a taxation year in circumstances in which section 688.1 applies or, in the case of distributions made after 1 October 1996 and before 1 January 2000, in circumstances in which section 692 applied, the following rules apply:

(a)  where the trust is resident in Canada at the time of each of those distributions, the income of the trust for the year, determined without reference to paragraph a of section 657, is to be computed, for the purposes of that paragraph a and section 663, without regard to all of those distributions to persons not resident in Canada, including a partnership other than a Canadian partnership, if the trust makes a valid election under paragraph a of subsection 2.11 of section 107 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 that applies in relation to all of those distributions; and

(b)  where the trust is resident in Canada at the time of each of those distributions, the income of the trust for the year, determined without reference to paragraph a of section 657, is to be computed, for the purposes of that paragraph a and section 663, without regard to all of those distributions, if the trust makes a valid election under paragraph b of subsection 2.11 of section 107 of the Income Tax Act after 19 December 2006 that applies in relation to all of those distributions.

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph a or b of subsection 2.11 of section 107 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

2003, c. 2, s. 176; 2009, c. 5, s. 221.

2006-03-01

688.1.1. Where a trust makes one or more distributions of property in a taxation year in circumstances in which section 688.1 applies or, in the case of distributions made after 1 October 1996 and before 1 January 2000, in circumstances in which section 692 applied, the following rules apply:

(a)  where the trust is resident in Canada at the time of each of those distributions and so elects in prescribed form filed with the Minister with the trust’s fiscal return for the year or a preceding taxation year, the income of the trust for the year, determined without reference to paragraph a of section 657 shall, for the purposes of that paragraph a and section 663, be computed without regard to all of those distributions to persons not resident in Canada, including a partnership other than a Canadian partnership; and

(b)  where the trust is resident in Canada at the time of each of those distributions and so elects in prescribed form filed with the Minister with the trust’s fiscal return for the year or a preceding taxation year, the income of the trust for the year, determined without reference to paragraph a of section 657 shall, for the purposes of that paragraph a and section 663, be computed without regard to all of those distributions.

2003, c. 2, s. 176.