Income Tax Act — I-3.3 (a)
exempt foreign trust at a particular time means (a) a non-resident trust if (i) each beneficiary under the trust at the particular time is (A) an individual who, at the time that the trust was created, was, because of mental or physical infirmity, dependent on an individual who is a contributor to the trust or on an individual related to such a contributor (which beneficiary is referred to in this paragraph as an “infirm beneficiary”), or (B) a person who is entitled, only after the particular time, to receive or otherwise obtain the use of any of the trust’s income or capital, (ii) at the particular time there is at least one infirm beneficiary who suffers from a mental or physical infirmity that causes the beneficiary to be dependent on a person, (iii) each infirm beneficiary is, at all times that the infirm beneficiary is a beneficiary under the trust during the trust’s taxation year that includes the particular time, non-resident, and (iv) each contribution to the trust made at or before the particular time can reasonably be considered to have been, at the time that the contribution was made, made to provide for the maintenance of an infirm beneficiary during the expected period of the beneficiary’s infirmity; (b) a non-resident trust if (i) the trust was created as a consequence of the breakdown of a marriage or common-law partnership of two particular individuals to provide for the maintenance of a beneficiary under the trust who was, during that marriage or common-law partnership, (A) a child of both of those particular individuals (which beneficiary is referred to in this paragraph as a “child beneficiary”), or (B) one of those particular individuals (which beneficiary is referred to in this paragraph as the “adult beneficiary”), (ii) each beneficiary under the trust at the particular time is (A) a child beneficiary under 21 years of age, (B) a child beneficiary under 31 years of age who is enrolled at any time in the trust’s taxation year that includes the particular time at an educational institution that is described in subclause (iv)(B)(I) or (II), (C) the adult beneficiary, or (D) a person who is entitled, only after the particular time, to receive or otherwise obtain the use of any of the trust’s income or capital, (iii) each beneficiary described in any of clauses (ii)(A) to (C) is, at all times that the beneficiary is a beneficiary under the trust during the trust’s taxation year that includes the particular time, non-resident, and (iv) each contribution to the trust, at the time that the contribution was made, was (A) an amount paid by the particular individual other than the adult beneficiary that would be a support amount as defined in subsection 56.1(4) if it had been paid by that particular individual directly to the adult beneficiary, or (B) made by one of those particular individuals or a person related to one of those particular individuals to provide for the maintenance of a child beneficiary while the child was either under 21 years of age or was under 31 years of age and enrolled at an educational institution located outside Canada that is (I) a university, college or other educational institution that provides courses at a post-secondary school level, or (II) an educational institution that provides courses designed to furnish a person with skills for, or improve a person’s skills in, an occupation; (c) a non-resident trust if (i) at the particular time the trust is an agency of the United Nations, (ii) at the particular time the trust owns and administers a university described in subparagraph (a)(iv) of the definition qualified donee in subsection 149.1(1), (iii) at any time in the trust’s taxation year that includes the particular time or at any time in the preceding calendar year Her Majesty in right of Canada has made a gift to the trust, or (iv) the trust is established under the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1