Income Tax Act — I-3.3 108
tion year on a designated stock exchange in Canada, or (c) the fair market value of the property of the trust at the end of 1993 was primarily attributable to real property or an interest in real property — or to immovables or a real right in immovables — and the trust was a unit trust throughout any calendar year that ended before 1994 and the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph (a) or (b) of the definition qualified investment in section 204, real property or an interest in real property — or immovables or a real right in immovables — or any combination of those properties. Interest rate hedging agreements (2.1) For the purposes of subparagraph (2)(b)(iv), if an amount included in computing the income of a trust is derived from, or from the disposition of, an agreement that can reasonably be considered to have been made by the trust to reduce its risk from fluctuations in interest rates in respect of debt incurred by the trust to acquire or refinance property described in subparagraph (2)(b)(iii), the amount is deemed to be derived from that property. Income of a trust in certain provisions (3) For the purposes of the definition income interest in subsection (1), subclause (c.1)(iii.1)(D)(II) of the definition principal residence in section 54 and the definitions lifetime benefit trust in subsection 60.011(1) and exempt foreign trust in subsection 94(1), the income of a trust is its income computed without reference to the provisions of this Act and, for the purposes of the definition pre-1972 spousal trust in subsection (1) and paragraphs 70(6)(b) and (6.1)(b), 73(1.01)(c) and 104(4)(a), the income of a trust is its income computed without reference to the provisions of this Act, minus any dividends included in that income (a) that are amounts not included by reason of section 83 in computing the income of the trust for the purposes of the other provisions of this Act; (b) that are described in subsection 131(1); or (c) to which subsection 131(1) applies by reason of subsection 130(2). Trust not disqualified (4) For the purposes of the definition pre-1972 spousal trust in subsection (1), subparagraphs 70(6)(b)(ii) and (6.1)(b)(ii) and paragraphs 73(1.01)(c) and 104(4)(a), if a trust was created by a taxpayer whether by the taxpayer’s will or otherwise, no person is deemed to have received or otherwise obtained or to be entitled to receive or otherwise obtain the use of any income or capital of the trust solely because of (a) the payment, or provision for payment, as the case may be, by the trust of (i) any estate, legacy, succession or inheritance duty payable, in consequence of the death of the taxpayer, or a spouse or common-law partner of the taxpayer who is a beneficiary under the trust, in respect of any property of, or interest in, the trust, or (ii) any income or profits tax payable by the trust in respect of any income of the trust; or (b) the inhabiting at any time by an individual of a housing unit that is, or is in respect of, property that is owned at that time by the trust, if (i) the property is described in the definition principal residence in section 54 in respect of the trust for the trust’s taxation year that includes that time, and (ii) the individual is (A) the taxpayer, or (B) the taxpayer’s (I) spouse or common-law partner, (II) former spouse or common-law partner, or (III) child. Interpretation (5) Except as otherwise provided in this Part, (a) an amount included in computing the income for a taxation year of a beneficiary of a trust under subsection 104(13) or (14) or section 105 shall be deemed to be income of the beneficiary for the year from a property that is an interest in the trust and not from any other source, and (b) an amount deductible in computing the amount that would, but for subsections 104(6) and (12), be the income of a trust for a taxation year shall not be deducted by a beneficiary of th