Marginal note:Tax payable by inter vivos trust
122 (1) Notwithstanding section 117, the tax payable under this Part by an inter vivos trust on its amount taxable for a taxation year shall be 29% of its amount taxable for the year.
Marginal note:Deductions not permitted
(1.1) No deduction may be made under section 118 in computing the tax payable by a trust for a taxation year.
Marginal note:Where s. (1) does not apply
(2) Subsection 122(1) is not applicable for a taxation year of an inter vivos trust other than a mutual fund trust if the trust
(a) was established before June 18, 1971;
(b) was resident in Canada on June 18, 1971 and without interruption thereafter until the end of the year;
(c) did not carry on any active business in the year;
(d) has not received any property by way of gift since June 18, 1971;
(e) has not, after June 18, 1971, incurred
(i) any debt, or
(ii) any other obligation to pay an amount,
to or guaranteed by, any person with whom any beneficiary of the trust was not dealing at arm’s length; and
(f) has not received any property after December 17, 1999, where
(i) the property was received as a result of a transfer from another trust,
(ii) subsection (1) applied to a taxation year of the other trust that began before the property was so received, and
(iii) no change in the beneficial ownership of the property resulted from the transfer.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 122
- 2001, c. 17, s. 105
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