Income Tax Act — I-3.3 94
ributes at any time restricted property to a trust, the amount of the contribution at that time is deemed, for the purposes of this section, to be the greater of (a) the amount, determined without reference to this subsection, of the contribution at that time, and (b) the amount that is the greatest fair market value of the restricted property, or property substituted for it, in the period that begins immediately after that time and ends at the end of the third calendar year that ends after that time. Contributor — resident in Canada within 60 months after contribution (10) In applying this section at each specified time, in respect of a trust’s taxation year, that is before the particular time at which a contributor to the trust becomes resident in Canada within 60 months after making a contribution to the trust, the contribution is deemed to have been made at a time other than a non-resident time of the contributor if (a) in applying the definition non-resident time in subsection (1) at each of those specified times, the contribution was made at a non-resident time of the contributor; and (b) in applying the definition non-resident time in subsection (1) immediately after the particular time, the contribution is made at a time other than a non-resident time of the contributor. Application of subsections (12) and (13) (11) Subsections (12) and (13) apply to a trust or a person in respect of a trust if (a) at any time property of a trust (referred to in this subsection and subsections (12) and (13) as the “original trust”) is transferred or loaned, directly or indirectly, in any manner, to another trust (referred to in this subsection and subsections (12) and (13) as the “transferee trust”); (b) the original trust (i) is deemed to be resident in Canada immediately before that time because of paragraph (3)(a), (ii) would be deemed to be resident in Canada immediately before that time because of paragraph (3)(a) if this section, as it read in its application to the 2013 taxation year, were read without reference to paragraph (a) of the definition connected contributor in subsection (1) and paragraph (a) of the definition resident contributor in that subsection, (iii) was deemed to be resident in Canada immediately before that time because of subsection (1) as it read in its application to taxation years that end before 2007, or (iv) would have been deemed to be resident in Canada immediately before that time because of subsection (1) as it read in its application to taxation years that end before 2007 if that subsection were read in that application without reference to subclause (b)(i)(A)(III) of that subsection; and (c) it is reasonable to conclude that one of the reasons the transfer or loan is made is to avoid or minimize a liability under this Part that arose, or that would otherwise have arisen, because of the application of this section (or the application of this section as it read in its application to taxation years that end before 2007). Deemed resident contributor (12) The original trust described in subsection (11) (including a trust that has ceased to exist) is deemed to be, at and after the time of the transfer or loan referred to in that subsection, a resident contributor to the transferee trust for the purpose of applying this section in respect of the transferee trust. Deemed contributor (13) A person (including any person that has ceased to exist) that is, at the time of the transfer or loan referred to in subsection (11), a contributor to the original trust, is deemed to be at and after that time (a) a contributor to the transferee trust; and (b) a connected contributor to the transferee trust, if at that time the person is a connected contributor to the original trust. Restricted property — exception (14) A particular property that is, or will be, at any time held, loaned or transferred, as the case may be, by a particular person or partnership is not restricted property held, loaned or transferred, as the c