Income Tax Act — I-3.3 210
ome, and (D) the interest of the particular partnership in the particular trust was held, at all times after the day on which the interest was created, by the particular partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income, (ii) a non-resident person, (iii) [Repealed, 2014, c. 39, s. 63] (iv) another trust that is, under paragraph (d), a designated beneficiary of the particular trust or that would, under paragraph (d), be a designated beneficiary of the particular trust if the other trust were at that time a beneficiary under the particular trust whose interest as a beneficiary under the particular trust were (A) acquired from each person or partnership from whom the particular partnership acquired its interest as a beneficiary under the particular trust, and (B) held, at all times after the later of October 1, 1987 and the day on which the particular partnership’s interest as a beneficiary under the particular trust was created, by the same persons or partnerships that held that interest of the particular partnership at those times, or (v) a person exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income except if the interest of the particular partnership in the particular trust was held, at all times after the day on which the interest was created, by the particular partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income. ( bénéficiaire étranger ou assimilé ) designated income , of a trust for a taxation year, means the amount that would be the income of the trust for the year determined under section 3 if (a) this Act were read without reference to subsections 104(6), (12) and (30); (b) the trust had no income other than taxable capital gains from dispositions described in paragraph (c) and incomes from (i) real or immovable properties in Canada (other than Canadian resource properties), (ii) timber resource properties, (iii) Canadian resource properties (other than properties acquired by the trust before 1972), and (iv) businesses carried on in Canada; (c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from (i) dispositions of taxable Canadian property, and (ii) dispositions of particular property (other than property described in any of subparagraphs 128.1(4)(b)(i) to (iii)), or property for which the particular property is substituted, that was transferred at any particular time to a particular trust in circumstances in which subsection 73(1) or 107.4(3) applied, if (A) it is reasonable to conclude that the property was so transferred in anticipation that a person beneficially interested at the particular time in the particular trust would subsequently cease to reside in Canada, and a person beneficially interested at the particular time in the particular trust did subsequently cease to reside in Canada, or (B) when the property was so transferred, the terms of the particular trust satisfied the conditions in subparagraph 73(1.01)(c)(i) or (iii), and it is reasonable to conclude that the transfer was made in connection with the cessation of residence, on or before the transfer, of a person who was, at the time of the transfer, beneficially interested in the particular trust and a spouse or common-law partner, as the case may be, of the transferor of the property to the particular trust; and (d) the only losses referred to in paragraph 3(d) were losses from sources described in any of subparagraphs (b)(i) to (iv). ( revenu de distribution ) Tax not payable (2) No tax is payable under this Part for a taxation year by a trust that was throughout the year (a) a graduated rate estate; (b) a mutual fund trust; (c) exempt from tax under Part I because of subsection 149(1); (d) a trust to which paragraph (a), (a.1) or (c) of the definition trust in subsection 108(1) applies; or (e) non-resident. [NOTE: Appl