Income Tax Act — I-3.3 251.1
son deals at arm’s length with the trust at that time and is not immediately after that time a majority-interest beneficiary of the trust, (a) a loan made at a reasonable rate of interest; or (b) a transfer made for fair market value consideration. ( cotisant ) controlled means controlled, directly or indirectly in any manner whatever. ( contrôlé ) majority-interest beneficiary , of a trust at any time, means a person whose interest as a beneficiary, if any, at that time (a) in the income of the trust has, together with the interests as a beneficiary in the income of the trust of all persons with whom the person is affiliated, a fair market value that is greater than 50% of the fair market value of all the interests as a beneficiary in the income of the trust; or (b) in the capital of the trust has, together with the interests as a beneficiary in the capital of the trust of all persons with whom the person is affiliated, a fair market value that is greater than 50% of the fair market value of all the interests as a beneficiary in the capital of the trust. ( bénéficiaire détenant une participation majoritaire ) majority-interest group of beneficiaries , of a trust at any time, means a group of persons each of whom is a beneficiary under the trust at that time such that (a) if one person held the interests as a beneficiary of all of the members of the group, that person would be a majority-interest beneficiary of the trust; and (b) if any member of the group were not a member, the test described in paragraph (a) would not be met. ( groupe de bénéficiaires détenant une participation majoritaire ) majority-interest group of partners of a partnership means a group of persons each of whom has an interest in the partnership such that (a) if one person held the interests of all members of the group, that person would be a majority-interest partner of the partnership; and (b) if any member of the group were not a member, the test described in paragraph (a) would not be met. ( groupe d’associés détenant une participation majoritaire ) Interpretation (4) For the purposes of this section, (a) persons are affiliated with themselves; (b) a person includes a partnership; (c) notwithstanding subsection 104(1), a reference to a trust does not include a reference to the trustee or other persons who own or control the trust property; and (d) in determining whether a person is affiliated with a trust, (i) if the amount of income or capital of the trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be, (ii) the interest of a person in a trust as a beneficiary is disregarded in determining whether the person deals at arm’s length with the trust if the person would, in the absence of the interest as a beneficiary, be considered to deal at arm’s length with the trust, (iii) a trust is not a majority interest beneficiary of another trust unless the trust has an interest as a beneficiary in the income or capital, as the case may be, of the other trust, and (iv) in determining whether a contributor to one trust is affiliated with a contributor to another trust, individuals connected by blood relationship, marriage, common-law partnership or adoption are deemed to be affiliated with one another. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1998, c. 19, s. 243; 2000, c. 12, s. 142; 2005, c. 19, s. 54; 2013, c. 40, s. 91(E)