Income Tax Act — I-3.3 104
 time, where (I) the transferor trust is a joint spousal or common-law partner trust, a post-1971 spousal or common-law partner trust or a trust described in the definition pre-1972 spousal trust in subsection 108(1), and (II) the spouse or common-law partner referred to in paragraph (4)(a) or in the definition pre-1972 spousal trust in subsection 108(1) is alive at the particular time, (C.1) the first day that ends at or after the particular time, where (I) the transferor trust is an alter ego trust, a trust to which paragraph (4)(a.4) applies or a joint spousal or common-law partner trust, and (II) the taxpayer referred to in paragraph (4)(a) or (a.4), as the case may be, is alive at the particular time, and (D) where (I) the disposition day would, but for the application of this subsection to the transfer, be determined under paragraph 104(5.3)(a) in respect of the transferee trust, and (II) the particular time is after the day that would, but for subsection 104(5.3), be determined under paragraph 104(4)(b) in respect of the transferee trust, the first day ending at or after the particular time, and (ii) where the disposition day determined in respect of the transferee trust under subparagraph 104(5.8)(a)(i) is earlier than the day referred to in clause 104(5.8)(a)(i)(B) in respect of the transferee trust, subsections 104(4) to 104(5.2) do not apply to the transferee trust on the day referred to in clause 104(5.8)(a)(i)(B) in respect of the transferee trust; (b) paragraph (a) does not apply in respect of the transfer where (i) the transferor trust is a post-1971 spousal or common-law partner trust or a trust described in the definition pre-1972 spousal trust in subsection 108(1), (ii) the spouse or common-law partner referred to in paragraph (4)(a) or in the definition pre-1972 spousal trust in subsection 108(1) is alive at the particular time, and (iii) the transferee trust is a post-1971 spousal or common-law partner trust or a trust described in the definition pre-1972 spousal trust in subsection 108(1); (b.1) paragraph (a) does not apply in respect of the transfer where (i) the transferor trust is an alter ego trust, (ii) the taxpayer referred to in paragraph (4)(a) is alive at the particular time, and (iii) the transferee trust is an alter ego trust; (b.2) paragraph (a) does not apply in respect of the transfer where (i) the transferor trust is a joint spousal or common-law partner trust, (ii) either the taxpayer referred to in paragraph (4)(a), or the spouse or common-law partner referred to in that paragraph, is alive at the particular time, and (iii) the transferee trust is a joint spousal or common-law partner trust; (b.3) paragraph (a) does not apply in respect of the transfer where (i) the transferor trust is a trust to which paragraph (4)(a.4) applies, (ii) the taxpayer referred to in paragraph (4)(a.4) is alive at the particular time, and (iii) the transferee trust is a trust to which paragraph (4)(a.4) applies; and (c) for the purposes of subsection 104(5.3), unless a day ending before the particular time has been determined under paragraph 104(4)(a.1) or 104(4)(b) or would, but for subsection 104(5.3), have been so determined, a day determined under subparagraph 104(5.8)(a)(i) shall be deemed to be a day determined under paragraph 104(4)(a.1) or 104(4)(b), as the case may be, in respect of the transferee trust. Deduction in computing income of trust (6) Subject to subsections (7) to (7.1), for the purposes of this Part, there may be deducted in computing the income of a trust for a taxation year (a) in the case of an employee trust, the amount by which the amount that would, but for this subsection, be its income for the year exceeds the amount, if any, by which (i) the total of all amounts each of which is its income for the year from a business exceeds (ii) the total of all amounts each of which is its loss for the year from a business; (a.1) in the case of a trust governed by an employee benefit plan, such