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

Marginal note:Trusts

• 75 (2) If a trust, that is resident in Canada and that was created in any manner whatever since 1934, holds property on condition

  • (a) that it or property substituted therefor may

    • (i) revert to the person from whom the property or property for which it was substituted was directly or indirectly received (in this subsection referred to as “the person”), or

    • (ii) pass to persons to be determined by the person at a time subsequent to the creation of the trust, or

  • (b) that, during the existence of the person, the property shall not be disposed of except with the person’s consent or in accordance with the person’s direction,

  any income or loss from the property or from property substituted for the property, and any taxable capital gain or allowable capital loss from the disposition of the property or of property substituted for the property, shall, during the existence of the person while the person is resident in Canada, be deemed to be income or a loss, as the case may be, or a taxable capital gain or allowable capital loss, as the case may be, of the person.

• Marginal note:Exceptions

  (3) Subsection 75(2) does not apply to property held in a taxation year

  • (a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a FHSA, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan, a retirement compensation arrangement or a TFSA;

  • (b) by an employee life and health trust, an employee trust, a private foundation that is a registered charity, a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), a trust described by paragraph (a.1) of the definition trust in subsection 108(1), or a trust described by paragraph 149(1)(y);

  • (c) by a qualifying environmental trust; or

  • (c.1) to (c.3) [Repealed, 2013, c. 40, s. 35]

  • (d) by a trust if

    • (i) the trust acquired the property, or other property for which the property is a substitute, from a particular individual,

    • (ii) the particular individual acquired the property or the other property, as the case may be, in respect of another individual as a consequence of the operation of subsection 122.61(1) or under section 4 of the Universal Child Care Benefit Act, and

    • (iii) the trust has no beneficiaries (as defined in subsection 108(1)) who may for any reason receive directly from the trust any of the income or capital of the trust other than individuals in respect of whom the particular individual acquired property as a consequence of the operation of a provision described in subparagraph (ii).