Income Tax Act — I-3.3 144.1
al satisfaction of its liability under the note or the evidence of indebtedness, whether stated to be of principal or interest or any other amount, is deemed to be an employer contribution to the trust that is subject to this section and not a payment of principal or interest on the note or indebtedness. Trust status — subsequent times (9) For the purposes of determining whether an amount is deductible by an employer under subsection (4), if a trust was an employee life and health trust at the time that a promissory note or other evidence of indebtedness referred to in subsection (8) was issued or provided, the trust is deemed to be an employee life and health trust at each time that an employer contribution is deemed to have been made under paragraph (8)(b) in respect of the note or other indebtedness. Employee contributions (10) For the purposes of paragraph 6(1)(f), subsection 6(4) and paragraph 118.2(2)(q), employee contributions to an employee life and health trust, to the extent that they are, and are identified by the trust at the time of contribution as, contributions in respect of a particular designated employee benefit, are deemed to be payments by the employee in respect of the particular designated employee benefit. Income inclusion (11) If a trust that is, or was, at any time, an employee life and health trust pays an amount as a distribution from the trust to any person in a taxation year, the amount of the distribution shall be included in computing the person’s income for the year, except to the extent that the amount is (a) a payment of a designated employee benefit that is not included in the person’s income because of section 6; or (b) a distribution to another employee life and health trust that is a beneficiary of the employee life and health trust. Deemed separate trusts (12) Where contributions have been received by an employee life and health trust from more than one employer, the trust is deemed to be a separate trust established in respect of the property held for the benefit of beneficiaries described in subparagraph (2)(d)(i) or (ii) in respect of a particular employer, if (a) the trustee designates the property to be held in a separate trust for the benefit of those beneficiaries in an election made on or before the filing-due date of the first taxation year of the separate trust described in this subsection; and (b) under the terms of the trust, contributions from the employer and the income derived from those contributions accrues solely for the benefit of those beneficiaries. Non-capital losses (13) No non-capital loss is deductible by an employee life and health trust in computing its taxable income for a taxation year, except as provided by subsections 111(7.3) to (7.5). Conditions — deemed employee life and health trust (14) Subsection (15) applies in respect of a trust if (a) the trust was established before February 28, 2018; (b) the contributions to the trust are determined in connection with a collective bargaining agreement; (c) all or substantially all of the employee benefits provided by the trust are designated employee benefits; and (d) the trust elects in prescribed form and manner that subsection (15) applies as of a particular date after 2018. Deemed employee life and health trust (15) If this subsection applies in respect of a trust, (a) the trust is deemed for the purposes of the Act to be an employee life and health trust from the particular date referred to in paragraph (14)(d) until the earliest of (i) the end of 2022, (ii) the day that the trust satisfies the conditions in subsection (2), and (iii) any day on which the condition in paragraph (14)(c) is not satisfied; and (b) at any time that the trust is an employee life and health trust because of paragraph (a), (i) subsection 111(7.5) applies to the trust as if the reference in paragraph (b) of that subsection to “subsection 144.1(3)” were read as a reference to “paragraph 144.1(3)(b)”, and (ii) subsection (3) applies to