Income Tax Act — I-3.3 94
agraph as the “buyer”) the trust (A) no longer holds any property that is shares of the capital stock of, or debt issued by, the Canadian corporation, and (B) no longer holds any property that is property the fair market value of which is derived in whole or in part, directly or indirectly, from shares of the capital stock of, or debt issued by, the Canadian corporation, (iii) the buyer deals at arm’s length immediately before the particular time with the Canadian corporation, the trust and the seller, (iv) in exchange for the sale, the buyer transfers or becomes obligated to transfer property (which property is referred to in this paragraph as the “consideration”) to the seller, and (v) it is reasonable to conclude (A) having regard only to the sale and the consideration that the seller would be willing to make the sale if the seller were dealing at arm’s length with the buyer, (B) that the terms and conditions made or imposed in respect of the exchange would be acceptable to the seller if the seller were dealing at arm’s length with the buyer, and (C) that the value of the consideration is not, at or after the particular time, determined in whole or in part, directly or indirectly, by reference to shares of the capital stock of, or debt issued by, the Canadian corporation; (u) a transfer, before October 11, 2002, to a personal trust by an individual (other than a trust) of particular property is deemed not to be a contribution of the particular property by the individual to the trust if (i) the individual identifies the trust in prescribed form filed with the Minister on or before the individual’s filing-due date for the individual’s 2003 taxation year (or a later date that is acceptable to the Minister), and (ii) the Minister is satisfied that (A) the individual (and any person or partnership not dealing at any time at arm’s length with the individual) has never loaned or transferred, directly or indirectly, restricted property to the trust, (B) in respect of each contribution (determined without reference to this paragraph) made before October 11, 2002, by the individual to the trust, none of the reasons (determined by reference to all the circumstances including the terms of the trust, an intention, the laws of a country or the existence of an agreement, a memorandum, a letter of wishes or any other arrangement) for the contribution was to permit or facilitate, directly or indirectly, the conferral at any time of a benefit (for greater certainty, including an interest as a beneficiary under the trust) on (I) the individual, (II) a descendant of the individual, or (III) any person or partnership with whom the individual or descendant does not, at any time, deal at arm’s length, and (C) the total of all amounts each of which is the amount of a contribution (determined without reference to this paragraph) made before October 11, 2002, by the individual to the trust does not exceed the greater of (I) 1% of the total of all amounts each of which is the amount of a contribution (determined without reference to this paragraph) made to the trust before October 11, 2002, and (II) $500; and (v) a loan made by a particular specified financial institution to a trust is deemed not to be a contribution to the trust if (i) the loan is made on terms and conditions that would have been agreed to by persons dealing at arm’s length, and (ii) the loan is made by the specified financial institution in the ordinary course of the business carried on by it. Liabilities of non-resident trusts and others (3) If at a specified time in a trust’s particular taxation year (other than a trust that is, at that time, an exempt foreign trust) the trust is non-resident (determined without reference to this subsection) and, at that time, there is a resident contributor to the trust or a resident beneficiary under the trust, (a) the trust is deemed to be resident in Canada throughout the particular taxation year for the purposes of (i) section 2, (ii) comput