,canada ,co/ums                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,attribu;n ( ,tru/ ,9come 6,settlor
,numb]3 ,,it-#cfi;,r
,date3 ,m>* #ab1 #aiij
,ref];e3 ,subsec;n #ge7#b7 7al sec;n
  #aaj.f & subsec;ns #gd.b7#b71 #ge7#c71
  #afj7#a71 #bab7#ab7 & #bdh7#e77

               ,applic,n
    
  ,? bullet9 replaces & c.els ,9t]pret,n
,bullet9 ,,it-#cfi issu$ on ,april #d1
#aigg4 ,curr5t revi.ns >e designat$
0v]tical l9es4

                ,summ>y
    
  ,? bullet9 d1ls )a tru/ 7o!r ?an ^?
ref]r$ 6in #b 2l7 ! t]ms ( : >e s* t !
tru/'s prop]ty may rev]t 6! p]son f   #a
              ,,it-#cfi;,r           a#a
:om ! prop]ty 0 directly or 9directly
rcvd1 or a c]ta9 degree ( 3trol ( t
prop]ty re/s ) t p]son 7see #c 2l74
  ,! -;t>y 2l 4cusses situ,ns 9 : !
tru/'s 9come or loss f prop]ty 7b n f a
busi;s71 or xs taxa# capital ga9 or
all[a# capital loss f ! 4posi;n (
prop]ty1 is 9clud$ 9 ! 9come (! p]son f
:om ! tru/ directly or 9directly rcvd !
prop]ty1 provid$ t ! p]son is liv+ &
resid5t 9 ,canada4

          ,4cus.n & ,9t]pret,n
           7p>agraphs #a-ab7
    
#a4 ,! provi.ns ( subsec;n #ge7#b7 may
  apply ": prop]ty is held "u any tru/
  e/abli%$ s9ce #aicd1 o!r ?an ^? tru/s
  ref]r$ 6in #b 2l4 ,unlike 7= example7
  sec;n #gd.c1 ! applic,n ( subsec;n
  #ge7#b7 does n dep5d ^u a 8loan0 or
  8transf]0 ( prop]ty b ^u ! fact t
  prop]ty is 8held0 0! tru/ "u "o or m
  (! 3di;ns describ$ 9 #c7a71 7b7 &   #b
              ,,it-#cfi;,r           b#a
  7c7 2l4 ,! applic,n ( subsec;n #ge7#b7
  results 9 c]ta9 am.ts1 deriv$ f !
  prop]ty held 0! tru/1 2+ attribut$ 6!
  p]son f :om ! prop]ty 0 directly or
  9directly rcvd4 ,xs applic,n 5ds if !
  p]son dies or c1ses 6be resid5t 9
  ,canada4
#b4 ,subsec;n #ge7#b7 does n apply ": !
  "picul> prop]ty is held 0tru/s li/$ 9
  subsec;n #ge7#c74 ,^! 9clude
  7a7 tru/s gov]n$ 0c]ta9 def]r$ 9come
    plans1
  7b7 employee tru/s1
  7c7 relat$ segregat$ fund tru/s1
  7d7 vac,n pay tru/s1
  7e7 non-resid5t tru/s 9 c]ta9
    circum/.es1 &
  7f7 prescrib$ tru/s4
  
  ,) respect 6#b7f71 "! >e no prescrib$
  tru/s z (! date ( public,n ( ?
  bullet94

                                      #c
              ,,it-#cfi;,r            #b
#c4 ,! 8prop]ty0 ref]r$ 6in subsec;n
  #ge7#b7 9cludes 8sub/itut$ prop]ty01 z
  def9$ 0subsec;n #bdh7#e74 ,any 9come
  or loss f ! prop]ty1 z well z any
  taxa# capital ga9 or all[a# capital
  loss f ! 4posi;n ( x1 is attribut$ 6!
  p]son f :om ! prop]ty 0 directly or
  9directly rcvd if ! t]ms (! tru/ >e s*
  t ! prop]ty
  7a7 may rev]t 6t p]son1
  7b7 may 2 4tribut$ 6b5efici>ies
    det]m9$ 0t p]son at a "t af ! tru/ 0
    cr1t$1 or
  7c7 may only 2 4pos$ ()! 3s5t (1 or at
    ! direc;n (1 t p]son :ile alive4
  
  ,subsec;n #ge7#b7 may apply 6any 9come
  f1 or any ga9 or loss f ! 4posi;n (1
  prop]ty rcvd f a p]son :o1 0! ex]cise
  (a p[] ( appo9t;t1 may det]m9e !
  b5efici>ies 6:om t prop]ty may pass4
  ,x may al apply ": ! prop]ty may rev]t
  6! p]son f :om x 0 rcvd z a 3sequ;e (!
  d1? (! la/ ( all o!r b5efici>ies    #d
              ,,it-#cfi;,r           a#b
  "u ! tru/4 ,af ,septemb] #cj1 #aihc &
  2f #aihg1 xs applic,n 0 ext5d$
  6attribute 6a p]son any capital ga9 or
  capital loss r1liz$ 0a tru/ f an 9dex$
  secur;y 9ve/;t plan1 6! ext5t t ! ga9
  or loss c r1sonably 2 3sid]$ 6be
  deriv$ f prop]ty rcvd f t p]son4
#d4 ,al? any 9come1 ga9 & loss 9 respect
  ( prop]ty rcvd f a p]son is attribut$
  0subsec;n #ge7#b7 6t p]son only dur+ a
  p]iod :5 t p]son is resid5t 9 ,canada1
  ! applic,n (! attribu;n rules does n
  dep5d ^u ! p]son hav+ be5 resid5t 9
  ,canada at ! "t ! prop]ty 0 rcvd 0!
  tru/4
#e4 ,9 apply+ subsec;n #ge7#b71 x is nec
  64t+ui% 2t 9come or loss f prop]ty &
  9come or loss f a busi;s4 ,! subsec;n
  does n apply 6attribute busi;s 9come
  or losses ev5 if ! busi;s op]ates ) "s
  or all (! prop]ty rcvd f ! "picul>
  taxpay]4
#f4 ,any 9come or loss deriv$ f ! 9ve/;t
  or o!r use (! e>n+s f prop]ty 7or   #e
              ,,it-#cfi;,r           b#b
  prop]ty sub/itut$ "!=7 rcvd f a p]son
  is n attribut$ 6t p]son4 ,= example1
  if ! prop]ty rcvd f a p]son is m"oy :
  is deposit$ 0! tru/ 96a bank a3.t1 !
  9t]e/ on ! 9itial deposit w attribute
  6t p]son b 9t]e/ on ! 9t]e/ left
  6a3umulate 9 ! bank a3.t w n
  attribute4
#g4 ,any non-busi;s 9come or loss deriv$
  f ! 9ve/;t or o!r use ( proce$s (
  4posi;n (a prop]ty 7or a prop]ty
  sub/itut$ "!=7 rcvd f a p]son w
  attribute 6t p]son4 ,= example1 if !
  prop]ty rcvd f a p]son is a build+ :
  is subsequ5tly 4pos$ (= 4#ajj1jjj1
  yield+ a taxa# capital ga9 ( 4#bj1jjj1
  n only w ! taxa# capital ga9 attribute
  6t p]son b al s attributa# w 2 any
  non-busi;s 9come e>n$ on ! 4#ajj1jjj
  proce$s4
--------------------------------------#c
#h4 ,) respect 6! 4#bj1jjj taxa# capital
  ga9 ref]r$ 6in #g abv1 z "! is no
  provi.n simil> 6subsec;n            #f
              ,,it-#cfi;,r           a#c
  #gd.b7#b7 a6ect+ subsec;n #ge7#b71
  taxa# capital ga9s attribut$ 6a p]son
  "u subsec;n #ge7#b7 >e n eligi# =!
  capital ga9s deduc;n "u sec;n #aaj.f4
  ,=a fur!r 4cus.n on ! attribu;n (
  taxa# capital ga9s1 ref] 6! curr5t
  v].n ( ,,it-#eaa 8,9t]sp\sal ,transf]s
  & ,loans ( ,prop]ty made af ,may #bb1
  #aihe04
#i4 ,subsec;n #ge7#b7 ref]s 6a 8p]son01
  : is def9$ 0subsec;n #bdh7#a7 69clude
  a 8corpor,n04 ,al? ! life"t (a
  corpor,n is 9det]m9ate1 ! ,de"p;t's
  view is t ? fact wd n preclude !
  attribu;n ( tru/ 9come 6a corpor,n 9
  circum/.es ": subsec;n #ge7#b7 wd
  o!rwise apply4
#aj4 ,subsec;n #bab7#ab7 provides t ":
  an am.t is attribut$ 6a p]son "u
  subsec;n #ge7#b7 on a3.t ( an am.t pd
  or cr$it$ 6a non-resid5t1 no ,"p
  ,,xiii tax is paya# ^u t am.t4
  ,simil>ly1 ! ,de"p;t 3sid]s t an am.t
  : has be5 attribut$ 6a p]son "u     #g
              ,,it-#cfi;,r           b#c
  subsec;n #ge7#b7 is norm,y 6be exclud$
  f ! 9come (a resid5t b5efici>y 6:om x
  0 pd or paya# 9 ! ye>1 & f ! 9come (!
  tru/ ": x 0 n pd or paya# 6! resid5t
  b5efici>y4
#aa4 ,g5],y1 x is ! settlor :o transf]s
  prop]ty 6a tru/ describ$ 9 subsec;n
  #ge7#b7 & 6:om ! 9come "!from is
  attribut$4 ,n"e!.s1 x is ! ,de"p;t's
  view t a p]son o!r ?an ! settlor may
  transf] prop]ty 6a tru/ "u "o or m (!
  3di;ns describ$ 9 #c7a7 to 7c7 abv &
  2come subject 6! attribu;n rules (!
  subsec;n4
#ab4 ,s9ce a transf] 6a tru/ describ$ 9
  #ge7#b7 is (t5 n at >m's l5g?1 c]ta9
  (! >range;ts 6: subsec;n #ge7#b7
  applies may result 9 subsec;n #afj7#a7
  apply+ 6bo? ! tru/ &! p]son f :om
  prop]ty 0 rcvd4 ,": subsec;n #afj7#a7
  applies 6a subsec;n #ge7#b7 situ,n1 !
  transf]or & transf]ee >e jo9tly &
  s"e,y lia# 6pay
                                      #h
              ,,it-#cfi;,r           c#c
  7a7 t "p (! transf]or's ,"p #a tax1 =
    ea* tax,n ye>1 t is attributa# 6!
    subsec;n #ge7#b7 attribu;n1 &
  7b7 an am.t equal 6! less] (
    7;i7 ! transf]or's tax liabil;y =!
      ye> 9 : ! prop]ty 0 transf]r$ &=
      any prec$+ ye>1 &
    7;ii7 ! am.t 0: ! fair m>ket value
      (! transf]r$ prop]ty exce$s ! fair
      m>ket value (! 3sid],n giv5 "!=4
    












                                      #i