Income Tax Act — I-3.3 94
er paragraph (2)(a) or (b) in respect of the trust (as those paragraphs read in their application to taxation years that end before 2007) (i) has, to the extent of the person’s recovery limit for the year, jointly and severally, or solidarily, with the trust and with each other such person, the rights and obligations of the trust in respect of the taxation years, of the trust, that end before 2007 under Divisions I and J, and (ii) is, to the extent of the person’s recovery limit for the year, subject to Part XV in respect of those rights and obligations; (f) if the trust (referred to in this paragraph as the “particular trust”) is an electing trust in respect of the particular taxation year, (i) an inter vivos trust (in this paragraph referred to as the “non-resident portion trust”) is deemed for the purposes of this Act (other than for the purposes of subsection 104(2)) (A) to be created at the first time at which the particular trust exists in its first taxation year in respect of which the particular trust is an electing trust, and (B) to continue in existence until the earliest of (I) the time at which the particular trust ceases to be resident in Canada because of subsection (5) or (5.1), (II) the time at which the particular trust ceases to exist, and (III) the time at which the particular trust becomes resident in Canada otherwise than because of this subsection, (ii) all of the particular trust’s property that is part of the particular trust’s non-resident portion is deemed to be the property of the non-resident portion trust and not to be, except for the purposes of this paragraph and the definition electing trust in subsection (1), the particular trust’s property, (iii) the terms and conditions of, and rights and obligations of beneficiaries under, the particular trust (determined by reference to all the circumstances including the terms of a trust, an intention, the laws of a country or the existence of an agreement, a memorandum, a letter of wishes or any other arrangement) are deemed to be the terms and conditions of, and rights and obligations of beneficiaries under, the non-resident portion trust, (iv) for greater certainty (A) the trustees of the particular trust are deemed to be the trustees of the non-resident portion trust, (B) the beneficiaries under the particular trust are deemed to be the beneficiaries under the non-resident portion trust, and (C) the non-resident portion trust is deemed not to have a resident contributor or connected contributor to it, (v) the non-resident portion trust is deemed to be, without affecting the liability of its trustees for their own income tax, in respect of its property an individual, (vi) if all or part of a property becomes at a particular time part of the particular trust’s non-resident portion and immediately before that time the property or that part, as the case may be, was part of its resident portion, the particular trust is deemed to have transferred at the particular time the property or that part, as the case may be, to the non-resident portion trust, (vii) if all or part of a property becomes at a particular time part of the particular trust’s resident portion and immediately before that time the property or that part, as the case may be, was part of its non-resident portion, the non-resident portion trust is deemed to have transferred at the particular time the property or that part, as the case may be, to the particular trust, (viii) the particular trust and the non-resident portion trust are deemed at all times to be affiliated with each other and to not deal with each other at arm’s length, (ix) the particular trust (A) has jointly and severally, or solidarily, with the non-resident portion trust, the rights and obligations of the non-resident portion trust in respect of any taxation year under Divisions I and J, and (B) is subject to Part XV in respect of those rights and obligations, and (x) if the non-resident portion trust ceases to exist at a particu