Income Tax Act

Version of section 233.2 from 2013-06-26 to 2017-10-13:

Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this section.

    exempt trust

    fiducie exonérée

    exempt trust means

    • (a) a trust that is governed by a foreign retirement arrangement;

    • (b) a trust that

      • (i) is resident in a country under the laws of which an income tax is imposed,

      • (ii) is exempt under the laws referred to in subparagraph (i) from the payment of income tax to the government of that country,

      • (iii) is established principally in connection with, or the principal purpose of which is to administer or provide benefits under, one or more superannuation, pension or retirement funds or plans or any funds or plans established to provide employee benefits, and

      • (iv) is either

        • (A) maintained primarily for the benefit of non-resident individuals, or

        • (B) governed by an employees profit sharing plan; or

    • (c) a trust

      • (i) where the interest of each beneficiary under the trust is described by reference to units, and

      • (ii) that complies with prescribed conditions. (fiducie exonérée)

    specified beneficiary

    specified beneficiary[Repealed, 2013, c. 34, s. 21]

    specified foreign trust

    specified foreign trust[Repealed, 2013, c. 34, s. 21]

  • Marginal note:Rule of application

    (2) In this section and paragraph 233.5(c.1), subsections 94(1), (2) and (10) to (13) apply, except that the reference to the expression “(other than restricted property)” in the definition arm’s length transfer in subsection 94(1) is to be read as a reference to the expression “(other than property to which paragraph 94(2)(g) applies but not including a unit of a mutual fund trust or of a trust that would be a mutual fund trust if section 4801 of the Income Tax Regulations were read without reference to paragraph 4801(b), a share of the capital stock of a mutual fund corporation, or a particular share of the capital stock of a corporation (other than a closely held corporation) which particular share is identical to a share that is, at the transfer time, of a class that is listed on a designated stock exchange)”.

  • (3) [Repealed, 2013, c. 34, s. 21]

  • Marginal note:Filing information on foreign trusts

    (4) A person shall file an information return in prescribed form, in respect of a taxation year of a particular trust (other than an exempt trust or a trust described in any of paragraphs (c) to (h) of the definition exempt foreign trust in subsection 94(1)) with the Minister on or before the person’s filing-due date for the person’s taxation year in which the particular trust’s taxation year ends if

    • (a) the particular trust is non-resident at a specified time in that taxation year of the particular trust;

    • (b) the person is a contributor, a connected contributor or a resident contributor to the particular trust; and

    • (c) the person

      • (i) is resident in Canada at that specified time, and

      • (ii) is not, at that specified time,

        • (A) a mutual fund corporation,

        • (B) an exempt person,

        • (C) a mutual fund trust,

        • (D) a trust described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1),

        • (E) a registered investment,

        • (F) a trust in which all persons beneficially interested are persons described in clauses (A) to (E), or

        • (G) a contributor to the particular trust by reason only of being a contributor to another trust that is resident in Canada and is described in any of clauses (B) to (F).

  • Marginal note:Similar arrangements

    (4.1) In this section and sections 162, 163 and 233.5, a person’s obligations under subsection (4) (except to the extent that they are waived in writing by the Minister) are to be determined as if a contributor described in paragraph (4)(b) were any person who had transferred or loaned property, an arrangement or entity were a non-resident trust throughout the calendar year that includes the time referred to in paragraph (a) and that calendar year were a taxation year of the arrangement or entity, if

    • (a) the person at any time, directly or indirectly, transferred or loaned the property to be held

      • (i) under the arrangement and the arrangement is governed by the laws of a country or a political subdivision of a country other than Canada or exists, was formed or organized, or was last continued under the laws of a country or a political subdivision of a country other than Canada, or

      • (ii) by the entity and the entity is a non-resident entity (as defined by subsection 94.1(2));

    • (b) the transfer or loan is not an arm’s length transfer;

    • (c) the transfer or loan is not solely in exchange for property that would be described in paragraphs (a) to (i) of the definition specified foreign property in subsection 233.3(1) if that definition were read without reference to paragraphs (j) to (q);

    • (d) the arrangement or entity is not a trust in respect of which the person would, if this Act were read without reference to this subsection, be required to file an information return for a taxation year that includes that time; and

    • (e) the arrangement or entity is, for a taxation year or fiscal period of the arrangement or entity that includes that time, not

      • (i) an exempt foreign trust (as defined in subsection 94(1)),

      • (ii) a foreign affiliate in respect of which the person is a reporting entity (within the meaning assigned by subsection 233.4(1)), or

      • (iii) an exempt trust.

  • Marginal note:Joint filing

    (5) Where information returns in respect of a trust’s taxation year would, but for this subsection, be required to be filed under subsection 4 by a particular person and another person, and the particular person identifies the other person in an election filed in writing with the Minister, for the purposes of applying this Act to the particular person

    • (a) the information return filed by the other person shall be treated as if it had been filed by the particular person;

    • (b) the information required to be provided with the return by the particular person shall be deemed to be the information required to be provided by the other person with the return;

    • (c) the day on or before which the return is required to be filed by the particular person is deemed to be the later of the day on or before which

      • (i) the return would, but for this subsection, have been required to have been filed by the particular person, and

      • (ii) the return is required to have been filed by the other person; and

    • (d) each act and omission of the other person in respect of the return is deemed to be an act or omission of the particular person.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 25, s. 69;
  • 1998, c. 19, s. 232;
  • 2013, c. 34, s. 21.
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