Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2015-02-04 and last amended on 2015-01-02. Previous Versions

Marginal note:Tax on initial non-qualified investments not disposed of
  •  (1) Every trust governed by a deferred profit sharing plan or revoked plan shall pay a tax

    • (a) for 1967, equal to the amount, if any, by which 20% of the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1968;

    • (b) for 1968, equal to the amount, if any, by which 40% of the initial base of the trust exceeds the total of

      • (i) the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1969, and

      • (ii) the tax payable by the trust determined under paragraph 199(1)(a);

    • (c) for 1969, equal to the amount, if any, by which 60% of the initial base of the trust exceeds the total of

      • (i) the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1970, and

      • (ii) the tax payable by the trust determined under paragraphs 199(1)(a) and 199(1)(b); and

    • (d) for 1970, equal to the amount, if any, by which 100% of the initial base of the trust exceeds the total of

      • (i) the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before 1971, and

      • (ii) the tax payable by the trust determined under paragraphs 199(1)(a), 199(1)(b) and 199(1)(c).

  • Marginal note:Refund

    (2) Where at the end of a year,

    • (a) the total of all taxes paid by a trust under subsection 199(1)

    exceeds

    • (b) the total of

      • (i) all refunds made to the trust under this subsection, and

      • (ii) the amount, if any, by which the initial base of the trust exceeds the proceeds of disposition of its initial non-qualified investments disposed of after December 21, 1966 and before the end of the year,

    the trust is, on application in accordance with section 202, entitled to a refund equal to the amount by which the total described in paragraph 199(2)(a) exceeds the total described in paragraph 199(2)(b).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1970-71-72, c. 63, s. 1“199”.
Marginal note:Distribution deemed disposition

 For the purposes of this Part, a distribution by a trust of a non-qualified investment to a beneficiary of the trust shall be deemed to be a disposition of that non-qualified investment and the proceeds of disposition of that non-qualified investment shall be deemed to be its fair market value at the time of the distribution.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 200;
  • 2013, c. 34, s. 334(F).