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

Act current to 2013-04-29 and last amended on 2013-03-01. Previous Versions

PART XII.2

TAX ON DESIGNATED INCOME OF CERTAIN TRUSTS

Marginal note:Designated beneficiary

210. In this Part, a “designated beneficiary” under a trust at any time means a beneficiary under the trust that was, at that time,

  • (a) a non-resident person;

  • (b) a non-resident-owned investment corporation;

  • (c) a person exempt from tax under Part I by reason of subsection 149(1), where that person acquired an interest in the trust after October 1, 1987 directly or indirectly from a beneficiary under the trust except

    • (i) where the interest was owned continuously since October 1, 1987 or the date on which the interest was created, whichever is later, by persons exempt from tax under Part I by reason of subsection 149(1), or

    • (ii) where the person was a trust governed by

      • (A) a registered retirement savings plan, or

      • (B) a registered retirement income fund,

      and acquired the interest, directly or indirectly, from an individual or the spouse or common-law partner or former spouse or common-law partner of the individual who was, immediately after the interest was acquired, a beneficiary under the trust governed by the fund or plan;

  • (d) a trust resident in Canada (other than a testamentary trust, a mutual fund trust or a trust exempt, because of subsection 149(1), from tax under Part I on all or part of its taxable income), if

    • (i) a person described in paragraph 210(a), 210(b) or 210(c),

    • (ii) a partnership described in paragraph 210(e), or

    • (iii) a trust (other than a trust resident in Canada that is a testamentary trust)

    is, at that time, a beneficiary thereunder; or

  • (e) a partnership, if a person described in paragraph 210(a), 210(b) or 210(d), a partnership or a person exempt from tax under Part I by reason of subsection 149(1) is, at that time, a member thereof.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 210;
  • 1994, c. 21, s. 96;
  • 2000, c. 12, s. 142.
Marginal note:Application of Part

210.1 This Part does not apply in a taxation year to a trust that was throughout the year

  • (a) a testamentary trust;

  • (b) a mutual fund trust;

  • (c) a trust that was exempt from tax under Part I by reason of subsection 149(1);

  • (d) a trust described in paragraph (a), (a.1) or (c) of the definition “trust” in subsection 108(1); or

  • (e) a non-resident trust.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 210.1;
  • 2001, c. 17, s. 171.