,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,TRU/S--,9COME ,PAYA# 6,B5EFICI>IES
,NUMB]3 ,,IT-#CDB;,R
,DATE3 ,M>* #BA1 #AIIJ
,REF];E3 ,P>AGRAPHS #AJD7#AC77A7 & 7C7
  7AL SUBSEC;NS #ID7#C7 & 7#D71
  #AJD7#F71 7#AC.A71 7#AC.B71 7#AH71
  7#BA71 7#BD71 7#BI7 & 7#CA71 #AJE7#B71
  #BAJ.B7#C7 & #BDH7#A7 DEF9I;N (
  8P]SONAL TRU/0 & P>AGRAPHS #EC7#B77H7
  & #BAB7#A77C77







                                      #A
               ,APPLIC,N             A#A
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#CDB DAT$ ,SEPTEMB] #G1
#AIGF4 ,! -;TS 9 ? BULLET9 D N APPLY 6A
TRU/ GOV]N$ 0AN EMPLOYEE B5EFIT PLAN &
AN EMPLOYEE TRU/ : >E 4CUSS$ 9 ! CURR5T
V].N ( ,,IT-#EJB4

                ,SUMM>Y
    
  ,9 -PUT+ ! 9COME (A B5EFICI>Y "U A
TRU/1 ANY TRU/ 9COME =A "PICUL> YE> 7Z
CALCULAT$ ON ,=M ,T#C--,TRU/ ,9COME ,TAX
& ,9=M,N ,RETURN7 T 2CAME PAYA# 9 ! YE>
6! B5EFICI>Y IS 9CLUD$4 ,? BULLET9 D1LS
) AM.TS S 9CLUD$ &! M1N+ (! T]M 8PAYA#04
,X 4CUSSES 9/.ES ": AM.TS >E DEEM$ 6BE
PAYA# 6A B5EFICI>Y & C]TA9 OP;NS T >E
AVAILA# 6! TRU/ 6DESIGNATE AM.TS T >E
PAYA# Z N 2+ PAYA#1 Z WELL Z C]TA9
DEDUC;NS F 9COME T C 2 FL[$ \ F ! TRU/
6! B5EFICI>Y4

                                      #B
         ,4CUS.N ,& ,9T]PRET,N       B#A
    
#A4 ,PURSUANT 6P>AGRAPHS #AJD7#AC77A7 &
  7C71 AN AM.T PAYA# 6A B5EFICI>Y \ (!
  9COME (A TRU/ 7SEE
  ,DESIGN,NS/,ALLOC,NS 6,B5EFICI>IES 9 !
  ,GUIDE 6! ,T#C ,TRU/ ,RETURN7 =! YE>
  IS REQUIR$ 6BE 9CLUD$ 9 -PUT+ ! 9COME
  (! B5EFICI>Y =! YE>1 :E!R OR N PD 6T
  P]SON 9 ! YE>1 & % N 2 9CLUD$ 9 -PUT+
  ! 9COME (! B5EFICI>Y =A SUBSEQU5T YE>
  9 : X IS PD4 ,9 A4I;N1 "U SUBSEC;N
  #AJE7#B7 A R1SONA# POR;N ( AM.TS PD \
  (! 9COME (A TRU/ =! UPKEEP ( PROP]TY
  MA9TA9$ "U ! T]MS (! TRU/ >RANGE;T =!
  USE (A LIFE T5ANT OR O!R B5EFICI>Y
  7PAGE #B ( ,=M ,T#C7 IS REQUIR$ 6BE
  9CLUD$ 9 ! 9COME (! LIFE T5ANT OR O!R
  B5EFICI>Y =! TAX,N YE> = : ! AM.TS 7
  PD4 ,= TAX,N YE>S ( TRU/S 2G9N+ AF
  #AIHG C]TA9 DESIGNAT$ AM.TS PD OR
  PAYA# 6A B5EFICI>Y MAY 2 EXCLUD$ 9
  -PUT+ ! 9COME (! B5EFICI>Y 7SEE #D
  2L74
                                      #C
         ,M1N+ ( 8,AM.T ,PAYA#0       #B
    
#B4 ,PURSUANT 6SUBSEC;N #AJD7#BD71 AN
  AM.T IS N 3SID]$ 6BE PAYA# 9 A TAX,N
  YE> UN.S X IS PD 9 ! YE> 6! P]SON 6:OM
  X IS PAYA# OR ! P]SON 6:OM X IS PAYA#
  IS 5TITL$ 9 ! YE> 65=CE PAY;T "!(4
  ,H["E1 SUBSEC;N #AJD7#AH7 PROVIDES T
  ": A "R 6! 9COME (A TRU/ HAS VE/$ 9 A
  M9OR1 9COME (! TRU/ : HAS N 2COME
  PAYA# 9 ! YE> 6S* B5EFICI>Y1 SOLELY 2C
  ! B5EFICI>Y 0 A M9OR1 % 2 DEEM$ 6H
  2COME PAYA# 9 ! YE>4 ,X %D 2 NOT$ T
  =EIGN A3RUAL PROP]TY 9COME (A NON-
  RESID5T TRU/ IS 9CLUD$ 9 ! 9COME (A
  B5EFICI>Y PURSUANT 6P>AGRAPH
  #AJD7#AC77C7 6! EXT5T T ! AM.T MAY
  R1SONABLY 2 3SID]$ 6H 2COME PAYA# 6A
  B5EFICI>Y )9 ! M1N+ ( SUBSEC;N
  #AJD7#BD74 ,T AM.T IS DEDUCTI# 0! NON-
  RESID5T TRU/ 0VIRTUE ( SUBSEC;NS
  #ID7#C7 & 7#D74


                                      #D
         ,FL[-,"? ,( ,DEDUC;NS       A#B
    
#C4 ,= TAX,N YE>S ( TRU/S 2G9N+ 2F
  #AIHH1 DEDUC;NS = CAPITAL CO/ ALL[.E &
  T]M9AL LOSSES1 9 RESPECT ( DEPRECIA#
  PROP]TY [N$ 0A TRU/1 MAY 2 CLAIM$ 9
  DET]M9+ ! TAXA# 9COME (! TRU/4
  ,ALT]NATIVELY1 TRU/EES MAY DESIGNATE T
  A SPECIFI$ AM.T ( CAPITAL CO/ ALL[.E &
  T]M9AL LOSSES 2 FL[$-\ & DEDUCT$
  0B5EFICI>IES 9 DET]M9+ _! 9COME4 ,AL1
  = TAX,N YE>S ( TRU/S 2G9N+ 2F #AIHH1
  SUBSEC;N #AJD7#AG7 P]MITS A DESIGN,N (
  DEPLE;N ALL[.E S T DEPLE;N ON C]TA9
  TYPES ( RES\RCE PROP]TY [N$ 0A TRU/
  MAY 2 DEDUCT$BY B5EFICI>IES F ! 9COME
  PAYA# 6!M 0! TRU/4 ,E6ECTIVE = TAX,N
  YE>S ( TRU/S -M5C+ AF #AIHG1 CAPITAL
  CO/ ALL[.E1 T]M9AL LOSSES & DEPLE;N >E
  DEDUCTI# ONLY 9 DET]M9+ ! 9COME (A
  TRU/ 7PAGE #B ( ,=M ,T#C74 ,3SEQU5TLY
  9COME PAYA# 0A TRU/ 6B5EFICI>IES 9
  YE>S -M5C+ AF #AIHG IS NO L;G] ELIGI#
  =! A=EM5;N$ DEDUC;NS 0B5EFICI>IES4
                                      #E
       ,DESIGN,N ,( ,TRU/ ,9COME     B#B
         ,PAYA# ,6,B5EFICI>IES
    
#D4 ,= TAX,N YE>S ( TRU/S -M5C+ AF
  #AIHG1 P>AGRAPH #AJD7#F77B7 ALL[S A
  TRU/ 6DEDUCT F XS 9COME LESS ?AN !
  FULL AM.T ( XS 9COME T 0 PD OR PAYA#
  6XS B5EFICI>IES4 ,6FACILITATE ?1
  SUBSEC;N #AJD7#AC.A7 P]MITS A TRU/
  RESID5T 9 ,CANADA "?\T ! YE>1 O!R ?AN
  A TRU/ EXEMPT F TAX 0R1SON ( SUBSEC;N
  #ADI7#A71 6DESIGNATE 6XS B5EFICI>IES
  _! RESPECTIVE %>ES ( T POR;N (! TRU/'S
  9COME PAYA# 6!M 9 ! YE> "U SUBSEC;NS
  #AJD7#AC7 OR #AJE7#B7 T HAS N BE5
  DEDUCT$ 0! TRU/ "U P>AGRAPH
  #AJD7#F77B74 ,SIMIL>LY1 SUBSEC;N
  #AJD7#AC.B7 ALL[S ! SAME TYPE ( TRU/
  6DESIGNATE 6XS B5EFICI>IES _!
  RESPECTIVE %>ES ( T POR;N ( TAXA#
  CAPITAL GA9S PAYA# 6!M 9 ! YE> "U
  SUBSEC;N #AJD7#AC7 PURSUANT 6SUBSEC;N
  #AJD7#BA7 T HAS

                                      #F
              ,,IT-#CDB;,R            #C
  N BE5 DEDUCT$ 0! TRU/ "U P>AGRAPH
  #AJD7#F77B7 OR US$ 9 ! DESIGN,N "U
  SUBSEC;N #AJD7#AC.A74 ,! DESIGNAT$
  AM.TS "U SUBSEC;NS #AJD7#AC.A7 &
  7#AC.B7 >E DEEM$ N 6H BE5 PD OR 6H
  2COME PAYA# 9 ! YE> 6OR =! B5EFIT (!
  B5EFICI>IES =! PURPOSES ( SUBSEC;NS
  #AJD7#AC7 & #AJE7#B74 ,3SEQU5TLY1 !
  DESIGNAT$ AM.TS >E TAXA# 6! TRU/ & N
  6! B5EFICI>IES4 ,SUBSEC;N #AJD7#AC.A7
  5A#S A TRU/ : M/ PAY \ ALL ( XS 9COME
  6XS B5EFICI>IES 6USE XS NON-CAPITAL
  LOSSES F PRIOR TAX,N YE>S )\T A6ECT+ !
  ABIL;Y (! TRU/ 64TRIBUTE XS 9COME
  CURR5TLY4 ,SUBSEC;N #AJD7#AC.B7
  3TEMPLATES ! SITU,N ": A TRU/ HAS NET-
  CAPITAL OR NON-CAPITAL LOSS C>RY=W>DS
  F A PRIOR TAX,N YE> & CURR5T TAXA#
  CAPITAL GA9S4 ,9 S* CIRCUM/.ES1 ! TRU/
  MAY *OOSE N 6DEDUCT ! FULL AM.T 6: X
  IS 5TITL$ "U SUBSEC;N #AJD7#F7 9 ORD]
  6ALL[ ! NET-CAPITAL OR NON-CAPITAL
  LOSS C>RY=W>DS 6ABSORB ! CURR5T TAXA#
  CAPITAL GA9 7PAGE #C ( ,=M ,T#C74   #G
              ,,IT-#CDB;,R           A#C
  ,= TAX,N YE>S ( TRU/S 2G9N+ 2F #AIHH1
  "! IS NO PROVI.N 9 ! ,ACT : P]MITS !
  TAX,N 6! TRU/ ( AM.TS T >E O!RWISE
  REQUIR$ 6BE 9CLUD$ 9 -PUT+ ! 9COME (A
  B5EFICI>Y4

  ,Z REG>DS TRU/S N RESID5T 9 ,CANADA1
  ALL AM.TS T 2COME PAYA# 6B5EFICI>IES
  >E 9CLUD$ 9 _! 9COME )! EXCEP;N (
  7A7 PROCE$S ( 4POSI;N ( "P OR ALL (!
    9T]E/ (A B5EFICI>Y 9 A TRU/1 OR
  7B7 ": ! TRU/ IS A P]SONAL TRU/1 Z
    DEF9$ 9 SUBSEC;N #BDH7#A7 7SEE #E
    2L71 A 4TRIBU;N ( CAPITAL4
  
     ,ADJU/;TS ,6,ADJU/$ ,CO/ ,BASE
    
#E4 ,AM.TS DESIGNAT$ 0A TRU/ PURSUANT
  6SUBSEC;NS #AJD7#AC.A7 OR 7#AC.B71 Z
  DESCRIB$ 9 #D ABV1 MAY REDUCE ! ADJU/$
  CO/ BASE (! CAPITAL 9T]E/ (! B5EFICI>Y
  9 ! TRU/4 ,9 ! CASE ( B5EFICI>IES (A
  P]SONAL TRU/1 "! IS NO REDUC;N (!
  ADJU/$ CO/ BASES ( _! CAPITAL       #H
              ,,IT-#CDB;,R           B#C
  9T]E/S UN.S !Y 7 ACQUIR$ = 3SID],N4 ,A
  P]SONAL TRU/1 DEF9$ 9 SUBSEC;N
  #BDH7#A71 IS EI A TE/A;T>Y TRU/ OR AN
  9T] VIVOS TRU/ 9 : NO B5EFICIAL 9T]E/
  0 ACQUIR$ = 3SID],N PAYA# 6! TRU/ OR
  6A P]SON :O HAS MADE A 3TRIBU;N 6!
  TRU/4 ,H["E1 ! M]E RET5;N AT ! "T !
  TRU/ 0 CR1T$ ( AN 9T]E/ 9 AN 9T] VIVOS
  TRU/ 0! 9DIVIDUAL OR RELAT$ 9DIVIDUALS
  :O SETTL$ ! TRU/ W N RESULT 9 ! TRU/ N
  QUALIFY+ Z A P]SONAL TRU/4 ,=!
  PURPOSES (! DEF9I;N (A P]SONAL TRU/1
  LOVE & A6EC;N W N 2 REG>D$ Z 3SID],N4
  ,9 G5]AL1 TRU/S O!R ?AN P]SONAL TRU/S
  MAY 2 DESCRIB$ Z -M]CIAL TRU/S &
  DESIGN,NS PURSUANT 6SUBSEC;N
  #AJD7#AC.A7 OR 7#AC.B7 W REDUCE !
  ADJU/$ CO/ BASE (! CAPITAL 9T]E/ (!
  B5EFICI>Y 9 S* TRU/S 9 A3ORD.E )
  P>AGRAPH #EC7#B77H74



                                      #I
          ,:5 ,9COME IS ,E>N$         #D
    
#F4 ,! AM.TS REQUIR$ 6BE 9CLUD$ 9 -PUT+
  ! 9COME (A B5EFICI>Y =A TAX,N YE> "U
  SUBSEC;NS #AJD7#AC7 & #AJE7#B7 >E
  3SID]$ 6H BE5 E>N$ 0! B5EFICI>Y ON !
  LA/ "D (! TAX,N YE> (! TRU/ & >E ?US 9
  RESPECT (! TAX,N YE> OR YE>S (! TRU/ :
  5D$ 9 ! TAX,N YE> (! B5EFICI>Y4 ,": !
  B5EFICI>Y IS A NON-RESID5T ( ,CANADA
  ON ! LA/ "D (! TRU/'S TAX,N YE>1 !
  AM.TS REF]R$ 6ABV >E SUBJECT 6)HOLD+
  TAX PURSUANT 6P>AGRAPH #BAB7#A77C71
  EXCEPT ": ! EXEMP;NS PROVID$ 9
  SUBSEC;NS #BAB7#I71 #BAB7#AJ7 &1 =
  #AIHG & PRIOR TAX,N YE>S1 #BAB7#AA.A7
  >E APPLICA#4







                                     #AJ
            ,PHANTOM ,9COME          A#D
    
#G4 ,PURSUANT 6SUBSEC;N #AJD7#BI71 C]TA9
  9COME (A TRU/1 "S"TS REF]R$ 6Z PHANTOM
  9COME1 MAY 2 DESIGNAT$ 0! TRU/ &1 Z A
  RESULT1 IS DEEM$ 6H 2COME PAYA#
  6"PICUL> B5EFICI>IES 0! TRU/4 ,= TAX,N
  YE>S ( TRU/S -M5C+ AF #AIHG1 ?
  DESIGN,N MAY 2 MADE ONLY 0A TRU/ =A
  TAX,N YE> "?\T : X 0 RESID5T 9
  ,CANADA4 ,S* DESIGNAT$ AM.TS1 : WD
  O!RWISE 2 TAXA# 6! TRU/1 MAY 2 TR1T$ Z
  9COME ( B5EFICI>IES (! TRU/ "U
  SUBSEC;N #AJD7#AC7 & MAY 2 DEDUCT$ 9
  DET]M9+ ! 9COME (! TRU/ PURSUANT
  6SUBSEC;N #AJD7#F74

  ,! AM.T 9 RESPECT ( : A TRU/ MAY MAKE
  ? DESIGN,N IS ! A7REGATE (
  7A7 NON-DEDUCTI# *>GES "U ! ,PETROLEUM
    & ,GAS ,REV5UE ,TAX ,ACT PURSUANT
    6P>AGRAPH #AH7#A77L4#A71
  7B7 NON-DEDUCTI# ,CR[N *>GES "U
    P>AGRAPH #AH7#A77M71
                                     #AA
              ,,IT-#CDB;,R           B#D
  7C7 ,CR[N PAY;TS 9CLUD$ 9 9COME "U
    P>AGRAPH #AB7#A77O71 &
  7D7 9COME 9CLU.NS RESULT+ F TRANSAC;NS
    )! ,CR[N : TAKE PLACE AT O!R ?AN
    FAIR M>KET VALUE "U SUBSEC;NS
    #FI7#F7 & 7#G71 LESS ! A7REGATE (
  7E7 ! RES\RCE ALL[.E AVAILA# 6! TRU/
    "U P>AGRAPH #BJ7#A77V4I71 &
  7F7 AM.TS : WD 2 9CLUD$ 9 ! 9COME (!
    TRU/ B = SEC;N #HJ.B 7REIMBURSE;T (
    ,CR[N *>GES74

  ,PURSUANT 6P>AGRAPHS #AJD7#BI77C7 &
  7D71 ! AM.T (! DESIGN,N IS LIMIT$ 6!
  PROPOR;N (! PHANTOM 9COME1 Z CALCULAT$
  9 7A7 TO 7F7 ABV1 T ! TRU/-PURPOSE
  9COME PAYA# 6ALL B5EFICI>IES IS (!
  TOTAL TRU/-PURPOSE 9COME =! YE>4
  ,TRU/-PURPOSE 9COME IS 9COME (! TRU/
  DET]M9$ )\T REF];E 6! ,9COME ,TAX
  ,ACT4 ,! TOTAL AM.T (! DESIGN,N1
  SUBJECT 6! LIMIT IMPOS$ ABV1 MAY 2
  ALLOCAT$ AM;G ! B5EFICI>IES PROVID$ T
  ! ALLOC,N 6A                       #AB
              ,,IT-#CDB;,R            #E
  "PICUL> B5EFICI>Y IS R1SONA# HAV+
  REG>D 6! PROPOR;N ( TRU/-PURPOSE 9COME
  9CLUD$ 9 ! 9COME ( T B5EFICI>Y4

           ,"P ,,XII4#B ,TAX
    
#H4 ,"P ,,XII4#B (! ,ACT 0 A4$ APPLICA#
  6! #AIHH & SUBSEQU5T TAX,N YE>S & X
  ASSESSES A SPECIAL TAX ON ! DESIGNAT$
  9COME1 Z DEF9$ 9 SUBSEC;N #BAJ.B7#B71
  ( C]TA9 TRU/S4 ,"P ,,XII4#B TAX G5],Y
  APPLIES ": DESIGNAT$ 9COME (A TRU/ IS
  PAYA# DUR+ ! YE> 6DESIGNAT$
  B5EFICI>IES 7G5],Y NON-RESID5TS &
  EXEMPT P]SONS7 Z DEF9$ 9 SEC;N #BAJ1 B
  DOES N APPLY1 ":1 "?\T ! YE>1 ! TRU/ 0
  7A7 A TE/A;T>Y TRU/1
  7B7 A MUTUAL FUND TRU/1
  7C7 A TRU/ EXEMPT F TAX 0R1SON (
    SUBSEC;N #ADI7#A71
  7D7 A TRU/ DESCRIB$ 9 SUBP>AGRAPH
    #AJH7#A77J77;II7 OR 7;IV71 OR
  7E7 A NON-RESID5T TRU/4
                                     #AC
              ,,IT-#CDB;,R           A#E
  ,^! PROVI.NS >E 9T5D$ 65SURE T
  DESIGNAT$ 9COME E>N$ 0TRU/S =! B5EFIT
  ( NON-RESID5TS & EXEMPT P]SONS W 2
  SUBJECT 6FULL TAX RATES R ?AN ! L[]
  NON-RESID5T TAX RATES "U ,"P ,,XIII OR
  NO RATE AT ALL 9 ! CASE ( EXEMPT
  P]SONS4

  ,:5 A TRU/ IS SUBJECT 6,"P ,,XII4#B
  TAX & HAS TAXA# RESID5T B5EFICI>IES1
  OR NON-RESID5T B5EFICI>IES ^: TAX
  LIABIL;Y IS -PUT$ "U ,"P ;,I (! ,ACT1
  OR BO?1 A PRORATA %>E (! ,"P ,,XII4#B
  TAX C 2 DESIGNAT$ 0! TRU/ 9 RESPECT (
  ANY (! A=EM5;N$ B5EFICI>IES4 ,S* %>E (
  TAX IS !N DEEM$ 0SUBSEC;N #BAJ.B7#C7
  6BE AN AM.T PD ON A3.T (! TAX PAYA# "U
  ,"P ;,I =! B5EFICI>Y'S TAX,N YE> 9 : !
  TAX,N YE> (! TRU/ 5DS4 ,! AM.T DEEM$
  0SUBSEC;N #BAJ.B7#C7 IS AL DEEM$1
  0SUBSEC;N #AJD7#CA71 6BE AN AM.T 9
  RESPECT (! 9COME (! TRU/ =! YE> T HAS
  2COME PAYA# 0! TRU/ 6! B5EFICI>Y AT !
  5D (! YE>4 ,T AM.T IS 9CLUD$ 9 !   #AD
              ,,IT-#CDB;,R           B#E
  B5EFICI>Y'S 9COME "U SUBSEC;N
  #AJD7#AC74 ,SUBSEC;N #AJD7#CA7 APPLIES
  6TAX,N YE>S ( TRU/S -M5C+ AF #AIHG4
  ,"P ,,XII4#B TAX MAY 2 CALCULAT$ ON
  ,=M ,T#C ,TRU/ ,S*$ULE #D4


















                                     #AE