Income Tax Act — I-3.3 107.4
Qualifying disposition 107.4 (1) In this section, a qualifying disposition of a property means a disposition of the property before December 21, 2002 by a person or partnership, and a disposition of property after December 20, 2002 by an individual, (which person, partnership or individual is referred to in this subsection as the “contributor”) as a result of a transfer of the property to a particular trust where (a) the disposition does not result in a change in the beneficial ownership of the property; (b) the proceeds of disposition would, if this Act were read without reference to this section and sections 69 and 73, not be determined under any provision of this Act; (c) the particular trust is resident in Canada at the time of the transfer; (d) [Repealed, 2013, c. 34, s. 235] (e) unless the contributor is a trust, there is immediately after the disposition no absolute or contingent right of a person or partnership (other than the contributor or, where the property was co-owned, each of the joint contributors) as a beneficiary (determined with reference to subsection 104(1.1)) under the particular trust; (f) the contributor is not an individual (other than a trust described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1)), if the particular trust is described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1); (g) the disposition is not part of a series of transactions or events (i) that begins after December 17, 1999 and that includes the subsequent acquisition, for consideration given to a personal trust, of a capital interest or an income interest in the trust, (ii) that begins after December 17, 1999 and that includes the disposition of all or part of a capital interest or an income interest in a personal trust, other than a disposition solely as a consequence of a distribution from a trust to a person or partnership in satisfaction of all or part of that interest, or (iii) that begins after June 5, 2000 and that includes the transfer to the particular trust of particular property as consideration for the acquisition of a capital interest in the particular trust, if the particular property can reasonably be considered to have been received by the particular trust in order to fund a distribution (other than a distribution that is proceeds of disposition of a capital interest in the particular trust); (h) the disposition is not, and is not part of, a transaction (i) that occurs after December 17, 1999, and (ii) that includes the giving to the contributor, for the disposition, of any consideration (other than consideration that is an interest of the contributor as a beneficiary under the particular trust or that is the assumption by the particular trust of debt for which the property can, at the time of the disposition, reasonably be considered to be security); (i) subsection 73(1) does not apply to the disposition and would not apply to the disposition if (i) no election had been made under that subsection, and (ii) section 73 were read without reference to subsection 73(1.02); and (j) if the contributor is an amateur athlete trust, a cemetery care trust, an employee life and health trust, an employee trust, a trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan, a registered supplementary unemployment benefit plan or a TFSA, the particular trust is the same type of trust. Application of paragraph (1)(a) (2) For the purpose of paragraph (1)(a), (a) except where paragraph (b) applies, where a trust (in this paragraph and subsection (2.1) referred to as the “transferor trust”), in a period that does no