Income Tax Act — I-3.3 146.2
ss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and (c) the trust’s income shall be computed without reference to subsection 104(6). Carrying on a business (6.1) If tax is payable under this Part for a taxation year because of subsection (6) by a trust that is governed by a TFSA that carries on one or more businesses at any time in the taxation year, (a) the holder of the TFSA is jointly and severally, or solidarily, liable with the trust to pay each amount payable under this Act by the trust that is attributable to that business or those businesses; and (b) the issuer’s liability at any time for amounts payable under this Act in respect of that business or those businesses shall not exceed the total of (i) the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and (ii) the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time. Amount credited to a deposit (7) An amount that is credited or added to a deposit that is a TFSA as interest or other income in respect of the TFSA is deemed not to be received by the holder of the TFSA solely because of that crediting or adding. Trust ceasing to be a TFSA (8) If an arrangement that governs a trust ceases, at a particular time, to be a TFSA, (a) the trust is deemed (i) to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time, and (ii) to have acquired, at the particular time, each such property at a cost equal to that fair market value; (b) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and (c) a taxation year of the trust is deemed to begin at the particular time. Trust ceasing to be a TFSA on death of holder (9) If an arrangement that governs a trust ceases to be a TFSA because of the death of the holder of the TFSA, (a) the arrangement is deemed, for the purposes of subsections (6) and (8), any regulations made under subsection (13), the definition trust in subsection 108(1), paragraph 149(1)(u.2) and the definitions qualified investment and non-qualified investment in subsection 207.01(1), to continue to be a TFSA until, and to cease to be a TFSA immediately after, the exemption-end time, being in this subsection the earlier of (i) the time at which the trust ceases to exist, and (ii) the end of the first calendar year that begins after the holder dies; (b) there shall be included in computing a taxpayer’s income for a taxation year the total of all amounts each of which is an amount determined by the formula A − B − C where A is the amount of a payment made out of or under the trust, in satisfaction of all or part of the taxpayer’s beneficial interest in the trust, in the taxation year, after the holder’s death and at or before the exemption-end time, B is the amount designated in respect of the payment as an exempt contribution (as defined in subsection 207.01(1)), and C is an amount designated by the trust not exceeding the lesser of (i) the amount by which the amount of the payment exceeds the amount determined for B in respect of the payment, and (ii) the amount by which the fair market value of all of the property held by the trust immediately before the holder’s death exceeds the total of all amounts each of which is the amount determined for C in respect of any other payment made out of or under the trust prior to the payment; and (c) there shall be included in computing the trust’s income for its first taxation year, if any, that begins after the exemption-end time the amount determined by the formula D − E − F where D is the sum of the fair market value of all of the proper