Income Tax Act — I-3.3 71
71 (11) Section 150 of the Act is amended by adding the following after subsection (1.2): Deemed trust (1.3) For the purpose of this section and section 204.2 of the Income Tax Regulations , (a) a trust includes an express trust that would not otherwise be considered a trust under the Act if, under the trust, (i) one or more persons (in this subsection and subsection (1.31) referred to as a “legal owner”) have legal ownership of property that is held for the use of, or benefit of, one or more persons or partnerships, and (ii) the legal owner can reasonably be considered to act as agent for the persons or partnerships who have the use of, or benefit of, the property; (b) each person that is a legal owner of a trust that is described under paragraph (a) is considered to be a trustee of the trust; and (c) each person or partnership that has the use or benefit of property under a trust that is described under paragraph (a) is considered to be a beneficiary of the trust. Deemed trust — exceptions (1.31) Subsection (1.3) does not apply to a trust for a taxation year if (a) each person or partnership that is considered to be a beneficiary under paragraph (1.3)(c) at any time in the year is also a legal owner of the property referred to in that paragraph at that time and there are no legal owners that are not considered to be beneficiaries; (b) the legal owners are individuals that are related persons and the property is real property or immovable that would be the principal residence of one or more of the legal owners for the year if those legal owners had designated the property for the year under the definition principal residence in section 54; (c) the legal owner is an individual and the property is real property or immovable that (i) is held for the use of, or benefit of, the legal owner’s spouse or common-law partner during the year, and (ii) would be the legal owner’s principal residence for the year if the legal owner had designated the property for the year under the definition principal residence in section 54; (d) under the trust (i) the property is held throughout the year solely for the use of, or benefit of, a partnership, (ii) each legal owner is a partner of the partnership, and (iii) a member of the partnership is, or but for subsection 220(2.1) would be, required under section 229 of the Income Tax Regulations to make an information return for a fiscal period of the partnership that includes December 31 of the taxation year; (e) the legal owner holds the property as required by an order of a court; (f) all or substantially all of the property under the trust is Canadian resource property (as defined in subsection 66(15)) that is held solely for the use of, or benefit of, one or more persons or partnerships each of which is (i) a corporation, the shares of which are listed on a designated stock exchange, (ii) a corporation that is controlled by one or more corporations described in subparagraph (i), (iii) a partnership if (A) a majority-interest partner of the partnership is a corporation described in subparagraph (i) or (ii), or (B) a majority-interest group of partners (as defined in subsection 251.1(3)) of the partnership consists of two or more corporations described in subparagraph (i) or (ii), or (iv) a partnership if (A) a majority-interest partner of the partnership is a person or partnership described in subparagraphs (i) to (iii), or (B) a majority-interest group of partners (as defined in subsection 251.1(3)) of the partnership consists of two or more persons or partnerships described in subparagraphs (i) to (iii); (g) under the trust (i) property is held exclusively for the use of, or benefit of, one or more persons described under subsection 149(1), (ii) each legal owner is a person described under subsection 149(1), and (iii) the property consists solely of funds received from His Majesty in right of Canada or a province; or (h) the trustee is a registered securities dealer acting in that capacity or a