GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Act — I-3.3 103
Agreement to share income, etc., so as to reduce or postpone tax otherwise payable 103 (1) Where the members of a partnership have agreed to share, in a specified proportion, any income or loss of the partnership from any source or from sources in a particular place, as the case may be, or any other amount in respect of any activity of the partnership that is relevant to the computation of the income or taxable income of any of the members thereof, and the principal reason for the agreement may reasonably be considered to be the reduction or postponement of the tax that might otherwise have been or become payable under this Act, the share of each member of the partnership in the income or loss, as the case may be, or in that other amount, is the amount that is reasonable having regard to all the circumstances including the proportions in which the members have agreed to share profits and losses of the partnership from other sources or from sources in other places. Agreement to share income, etc., in unreasonable proportions (1.1) Where two or more members of a partnership who are not dealing with each other at arm’s length agree to share any income or loss of the partnership or any other amount in respect of any activity of the partnership that is relevant to the computation of the income or taxable income of those members and the share of any such member of that income, loss or other amount is not reasonable in the circumstances having regard to the capital invested in or work performed for the partnership by the members thereof or such other factors as may be relevant, that share shall, notwithstanding any agreement, be deemed to be the amount that is reasonable in the circumstances. Definition of losses (2) For the purposes of this section, the word losses when used in the expression “profits and losses” means losses determined without reference to other provisions of this Act. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1970-71-72, c. 63, s. 1“103”; 1980-81-82-83, c. 48, s. 53
Income Tax Act — I-3.3 104
and (f) is designated by the trust in respect of the beneficiary in the trust’s return of income under this Part for the trust year is, for the purposes of paragraph 60(j), an eligible amount inrespect of the beneficiary for the particular year. Death benefit (28) If the graduated rate estate of an individual receives an amount on or after the individual’s death in recognition of the individual’s service in an office or employment, the portion of the amount that can reasonably be considered (having regard to all the circumstances including the terms and conditions of the trust arrangement) to be paid or payable at any time to a beneficiary under the estate is deemed (a) to be an amount received by the beneficiary at that time on or after the death in recognition of the individual’s service in an office or employment; and (b) except for purposes of this subsection, not to have been received by the estate. (29) [Repealed, 2003, c. 28, s. 11(2)] Tax under Part XII.2 (30) For the purposes of this Part, there shall be deducted in computing the income of a trust for a taxation year the tax paid by the trust for the year under Part XII.2. Idem (31) The amount in respect of a taxation year of a trust that is deemed under subsection 210.2(3) to have been paid by a beneficiary under the trust on account of the beneficiary’s tax under this Part shall, for the purposes of subsection 104(13), be deemed to be an amount in respect of the income of the trust for the year that has become payable by the trust to the beneficiary at the end of the year. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 104; 1994, c. 7, Sch. II, s. 75, Sch. VIII, s. 42, c. 8, s. 12, c. 21, s. 46; 1995, c. 3, s. 28; 1996, c. 21, s. 18; 1998, c. 19, s. 127; 2000, c. 12, s. 142; 2001, c. 17, s. 78; 2003, c. 15, s. 72, c. 28, s. 11; 2005, c. 19, s. 17; 2007, c. 2, s. 15, c. 29, s. 8, c. 35, s. 27; 2010, c. 25, s. 16; 2013, c. 34, ss. 10, 231; 2014, c. 39, s. 26; 2015, c. 36, s. 5; 2016, c. 12, s. 35; 2017, c. 33, s. 35; 2018, c. 12, s. 8 2022, c. 19, s. 13 2026, c. 3, s. 31
Income Tax Act — I-3.3 105
Benefits under trust 105 (1) The value of all benefits to a taxpayer during a taxation year from or under a trust, irrespective of when created, shall, subject to subsection 105(2), be included in computing the taxpayer’s income for the year except to the extent that the value (a) is otherwise required to be included in computing the taxpayer’s income for a taxation year; or (b) has been deducted under paragraph 53(2)(h) in computing the adjusted cost base of the taxpayer’s interest in the trust or would be so deducted if that paragraph (i) applied in respect of the taxpayer’s interest in the trust, and (ii) were read without reference to clause 53(2)(h)(i.1)(B). Upkeep, etc. (2) Such part of an amount paid by a trust out of income of the trust for the upkeep, maintenance or taxes of or in respect of property that, under the terms of the trust arrangement, is required to be maintained for the use of a tenant for life or a beneficiary as is reasonable in the circumstances shall be included in computing the income of the tenant for life or other beneficiary from the trust for the taxation year for which it was paid. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1970-71-72, c. 63, s. 1“105”; 1988, c. 55, s. 72
Income Tax Act — I-3.3 106
Income interest in trust 106 (1) Where an amount in respect of a taxpayer’s income interest in a trust has been included in computing the taxpayer’s income for a taxation year by reason of subsection 106(2) or 104(13), except to the extent that an amount in respect of that income interest has been deducted in computing the taxpayer’s taxable income pursuant to subsection 112(1) or 138(6), there may be deducted in computing the taxpayer’s income for the year the lesser of (a) the amount so included in computing the taxpayer’s income for the year, and (b) the amount, if any, by which the cost to the taxpayer of the income interest exceeds the total of all amounts in respect of the interest that were deductible under this subsection in computing the taxpayer’s income for previous taxation years. Cost of income interest in a trust (1.1) The cost to a taxpayer of an income interest of the taxpayer in a trust is deemed to be nil unless (a) any part of the interest was acquired by the taxpayer from a person who was the beneficiary in respect of the interest immediately before that acquisition; or (b) the cost of any part of the interest would otherwise be determined not to be nil under paragraph 128.1(1)(c) or (4)(c). Disposition by taxpayer of income interest (2) Where in a taxation year a taxpayer disposes of an income interest in a trust, (a) except where subsection (3) applies to the disposition, there shall be included in computing the taxpayer’s income for the year the amount, if any, by which (i) the proceeds of disposition exceed (ii) where that interest includes a right to enforce payment of an amount by the trust, the amount in respect of that right that has been included in computing the taxpayer’s income for a taxation year because of subsection 104(13); (b) any taxable capital gain or allowable capital loss of the taxpayer from the disposition shall be deemed to be nil; and (c) for greater certainty, the cost to the taxpayer of each property received by the taxpayer as consideration for the disposition is the fair market value of the property at the time of the disposition. Proceeds of disposition of income interest (3) For greater certainty, where at any time any property of a trust has been distributed by the trust to a taxpayer who was a beneficiary under the trust in satisfaction of all or any part of the taxpayer’s income interest in the trust, the trust shall be deemed to have disposed of the property for proceeds of disposition equal to the fair market value of the property at that time. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 106; 2001, c. 17, s. 79; 2013, c. 34, s. 232(F)
Income Tax Act — I-3.3 107
solidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 107; 1994, c. 7, Sch. II, s. 76, Sch. VIII, s. 43, c. 21, s. 47; 1995, c. 3, s. 29, c. 21, s. 35; 1998, c. 19, s. 128; 2000, c. 12, s. 142; 2001, c. 17, s. 80; 2009, c. 2, s. 26; 2010, c. 12, s. 10; 2013, c. 34, ss. 11, 233, c. 40, s. 44; 2016, c. 12, s. 36; 2017, c. 33, s. 36 2022, c. 19, s. 14
Income Tax Act — I-3.3 107.1
Distribution by certain employment-related trusts 107.1 If at any time any property of an employee life and health trust, an employee trust, a trust governed by an employee benefit plan or a trust described in paragraph (a.1) of the definition trust in subsection 108(1) has been distributed by the trust to a taxpayer who was a beneficiary under the trust in satisfaction of all or any part of the taxpayer’s interest in the trust, the following rules apply: (a) in the case of an employee life and health trust, an employee trust or a trust described in paragraph (a.1) of the definition trust in subsection 108(1), (i) the trust shall be deemed to have disposed of the property immediately before that time for proceeds of disposition equal to its fair market value at that time, and (ii) the taxpayer shall be deemed to have acquired the property at a cost equal to its fair market value at that time; (b) in the case of a trust governed by an employee benefit plan, (i) the trust shall be deemed to have disposed of the property for proceeds of disposition equal to its cost amount to the trust immediately before that time, and (ii) the taxpayer shall be deemed to have acquired the property at a cost equal to the greater of (A) its fair market value at that time, and (B) the adjusted cost base to the taxpayer of the taxpayer’s interest or part thereof, as the case may be, immediately before that time; (c) the taxpayer shall be deemed to have disposed of the taxpayer’s interest or part thereof, as the case may be, for proceeds of disposition equal to the adjusted cost base to the taxpayer of that interest or part thereof immediately before that time; and (d) where the property was depreciable property of a prescribed class of the trust and the amount that was the capital cost to the trust of that property exceeds the cost at which the taxpayer is deemed by this section to have acquired the property, for the purposes of sections 13 and 20 and any regulations made under paragraph 20(1)(a), (i) the capital cost to the taxpayer of the property shall be deemed to be the amount that was the capital cost of the property to the trust, and (ii) the excess shall be deemed to have been allowed to the taxpayer in respect of the property under regulations made under paragraph 20(1)(a) in computing income for taxation years before the acquisition by the taxpayer of the property. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 107.1; 2001, c. 17, s. 81; 2010, c. 25, s. 17
Income Tax Act — I-3.3 107.2
Distribution by a retirement compensation arrangement 107.2 Where, at any time, any property of a trust governed by a retirement compensation arrangement has been distributed by the trust to a taxpayer who was a beneficiary under the trust in satisfaction of all or any part of the taxpayer’s interest in the trust, for the purposes of this Part and Part XI.3, the following rules apply: (a) the trust shall be deemed to have disposed of the property for proceeds of disposition equal to its fair market value at that time; (b) the trust shall be deemed to have paid to the taxpayer as a distribution an amount equal to that fair market value; (c) the taxpayer shall be deemed to have acquired the property at a cost equal to that fair market value; (d) the taxpayer shall be deemed to have disposed of the taxpayer’s interest or part thereof, as the case may be, for proceeds of disposition equal to the adjusted cost base to the taxpayer of that interest or part thereof immediately before that time; and (e) where the property was depreciable property of a prescribed class of the trust and the amount that was the capital cost to the trust of that property exceeds the cost at which the taxpayer is deemed by this section to have acquired the property, for the purposes of sections 13 and 20 and any regulations made under paragraph 20(1)(a), (i) the capital cost to the taxpayer of the property shall be deemed to be the amount that was the capital cost of the property to the trust, and (ii) the excess shall be deemed to have been allowed to the taxpayer in respect of the property under regulations made under paragraph 20(1)(a) in computing the taxpayer’s income for taxation years before the acquisition by the taxpayer of the property. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 107.2; 2013, c. 34, s. 234(F)
Income Tax Act — I-3.3 107.3
Treatment of beneficiaries under qualifying environmental trusts 107.3 (1) Where a taxpayer is a beneficiary under a qualifying environmental trust in a taxation year of the trust (in this subsection referred to as the “trust’s year”) that ends in a particular taxation year of the taxpayer, (a) subject to paragraph 107.3(1)(b), the taxpayer’s income, non-capital loss and net capital loss for the particular year shall be computed as if the amount of the income or loss of the trust for the trust’s year from any source or from sources in a particular place were the income or loss of the taxpayer from that source or from sources in that particular place for the particular year, to the extent of the portion thereof that can reasonably be considered to be the taxpayer’s share of such income or loss; and (b) if the taxpayer is non-resident at any time in the particular year and an income or loss described in paragraph 107.3(1)(a) or an amount to which paragraph 12(1)(z.1) or (z.2) applies would not otherwise be included in computing the taxpayer’s taxable income or taxable income earned in Canada, as the case may be, notwithstanding any other provision of this Act, the income, the loss or the amount shall be attributed to the carrying on of business in Canada by the taxpayer through a fixed place of business located in the province in which the site to which the trust relates is situated. Transfers to beneficiaries (2) Where property of a qualifying environmental trust is transferred at any time to a beneficiary under the trust in satisfaction of all or any part of the beneficiary’s interest as a beneficiary under the trust, (a) the trust shall be deemed to have disposed of the property at that time for proceeds of disposition equal to its fair market value at that time; and (b) the beneficiary shall be deemed to have acquired the property at that time at a cost equal to its fair market value at that time. Ceasing to be qualifying environmental trust (3) If at any time a trust ceases to be a qualifying environmental trust, (a) for the purposes of subsections 111(5.5) and 149(10), the trust is deemed to cease at that time to be exempt from tax under this Part on its taxable income; (b) each beneficiary under the trust immediately before that time is deemed to receive at that time from the trust an amount equal to the percentage of the fair market value of the properties of the trust immediately after that time that can reasonably be considered to be the beneficiary’s interest in the trust; and (c) each beneficiary under the trust is deemed to acquire immediately after that time an interest in the trust at a cost equal to the amount deemed by paragraph (b) to be received by the beneficiary from the trust. Application (4) Subsection 104(13) and sections 105 to 107 do not apply to a trust with respect to a taxation year during which it is a qualifying environmental trust. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1995, c. 3, s. 30; 1998, c. 19, s. 18; 2013, c. 40, s. 45
Income Tax Act — I-3.3 107.4
 (d) interests under the trust are not ordinarily disposed of for consideration that reflects the fair market value of the net assets of the trust, the fair market value of the particular interest at that time is deemed to be not less than the amount determined by the formula (A - B) × (C/D) where A is the total fair market value at that time of all properties of the trust, B is the total of all amounts each of which is the amount of a debt owing by the trust at that time or the amount of any other obligation of the trust to pay any amount that is outstanding at that time, C is the fair market value at that time of the particular interest (determined without reference to this subsection), and D is the total fair market value at that time of all interests as beneficiaries under the trust (determined without reference to this subsection). [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2001, c. 17, s. 82; 2005, c. 30, s. 4; 2007, c. 35, s. 109; 2008, c. 28, s. 10; 2009, c. 2, s. 27; 2010, c. 12, s. 11, c. 25, s. 18; 2013, c. 34, s. 235; 2014, c. 39, s. 27; 2016, c. 12, s. 37 2026, c. 3, s. 32
Income Tax Act — I-3.3 (a)
accumulating income of a trust for a taxation year means the amount that would be the income of the trust for the year if that amount were computed (a) without reference to paragraphs 104(4)(a) and (a.1) and subsections 104(5.1), (5.2) and (12) and 107(4), (b) as if the greatest amount that the trust was entitled to claim under subsection 104(6) in computing its income for the year were so claimed, and (c) without reference to subsection 12(10.2), except to the extent that that subsection applies to amounts paid to a trust to which paragraph 70(6.1)(b) applies and before the death of the spouse or common-law partner referred to in that paragraph; ( revenu accumulé )
Income Tax Act — I-3.3
beneficiary under a trust includes a person beneficially interested therein; ( bénéficiaire )
Income Tax Act — I-3.3
capital interest of a taxpayer in a trust means all rights of the taxpayer as a beneficiary under the trust, and after 1999 includes a right (other than a right acquired before 2000 and disposed of before March 2000) to enforce payment of an amount by the trust that arises as a consequence of any such right, but does not include an income interest in the trust; ( participation au capital )
Income Tax Act — I-3.3 (a)
cost amount to a taxpayer at any time of a capital interest or part of it, as the case may be, in a trust, means (notwithstanding subsection 248(1) and except for the purposes of subsection 107(3.1) and section 107.4 and except in respect of a capital interest in a trust that is at that time a foreign affiliate of the taxpayer), (a) where any money or other property of the trust has been distributed by the trust to the taxpayer in satisfaction of all or part of the taxpayer’s capital interest (whether on the winding-up of the trust or otherwise), the total of (i) the money so distributed, and (ii) all amounts each of which is the cost amount to the trust, immediately before the distribution, of each such other property, (a.1) where that time (in this paragraph referred to as the “particular time”) is immediately before the time that is immediately before the time of the death of the taxpayer and subsection 104(4) or (5) deems the trust to dispose of property at the end of the day that includes the particular time, the amount that would be determined under paragraph (b) if the taxpayer had died on a day that ended immediately before the time that is immediately before the particular time, and (b) in any other case, the amount determined by the formula (A - B) × C/D where A is the total of (i) all money of the trust on hand immediately before that time, and (ii) all amounts each of which is the cost amount to the trust, immediately before that time, of each other property of the trust, B is the total of all amounts each of which is the amount of any debt owing by the trust, or of any other obligation of the trust to pay any amount, that was outstanding immediately before that time, C is the fair market value at that time of the capital interest or part thereof, as the case may be, in the trust, and D is the fair market value at that time of all capital interests in the trust; ( coût indiqué )
Income Tax Act — I-3.3
eligible offset at any time of a taxpayer in respect of all or part of the taxpayer’s capital interest in a trust is the portion of any debt or obligation that is assumed by the taxpayer and that can reasonably be considered to be applicable to property distributed at that time in satisfaction of the interest or part of the interest, as the case may be, if the distribution is conditional upon the assumption by the taxpayer of the portion of the debt or obligation; ( montant de réduction admissible )
Income Tax Act — I-3.3
eligible real property gain [Repealed, 1995, c. 3, s. 31]
Income Tax Act — I-3.3
eligible real property loss [Repealed, 1995, c. 3, s. 31]
Income Tax Act — I-3.3 (a)
eligible taxable capital gains, of a trust for a taxation year, means the lesser of (a) its annual gains limit (within the meaning assigned by subsection 110.6(1)) for the year, and (b) the amount determined by the formula A - B where A is its cumulative gains limit (within the meaning assigned by subsection 110.6(1)) at the end of the year, and B is the total of all amounts designated under subsection 104(21.2) by the trust in respect of beneficiaries for taxation years before that year; ( gains en capital imposables admissibles )
Income Tax Act — I-3.3 (a)
excluded property , of a trust, means property owned by the trust at, and distributed by the trust after, the end of 2016, if (a) the trust is not in its first taxation year that begins after 2016 a trust described in subparagraph (c.1)(iii.1) of the definition principal residence in section 54, and (b) the property is a property that would be the trust’s principal residence (as defined in section 54) for the taxation year in which the distribution occurs if (i) that definition were read without reference to its subparagraph (c.1)(iii.1), and (ii) the trust designated the property under that definition as its principal residence for the taxation year; ( bien exclu )
Income Tax Act — I-3.3
exempt property of a taxpayer at any time means property any income or gain from the disposition of which by the taxpayer at that time would, because the taxpayer is non-resident or because of a provision contained in a tax treaty, not cause an increase in the taxpayer’s tax payable under this Part; ( bien exonéré )
Income Tax Act — I-3.3
income interest of a taxpayer in a trust means a right (whether immediate or future and whether absolute or contingent) of the taxpayer as a beneficiary under a personal trust to, or to receive, all or any part of the income of the trust and, after 1999, includes a right (other than a right acquired before 2000 and disposed of before March 2000) to enforce payment of an amount by the trust that arises as a consequence of any such right; ( participation au revenu )
Income Tax Act — I-3.3
inter vivos trust means a trust other than a testamentary trust; ( fiducie non testamentaire )
Income Tax Act — I-3.3
non-qualifying real property [Repealed, 1995, c. 3, s. 31]