,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,=eign ,prop]ty ( ,regi/]$ ,plans
,numb]3 ,,it-#dab;,r#b
,date3 ,janu>y #af1 #aiie
,ref];e3 ,subsec;n #bjf7#a7 7al sec;n
  #bje & subsec;ns #adf7#af71 #bjf7#b71
  #bjf7#b.a71 #bjf7#c71 #bjf7#c.a7 &
  #bei7#c7 (! ,9come ,tax ,act1 sec;n
  #ejjj (! ,9come ,tax ,regul,ns &
  subsec;n #fe7#e7 (! ,9come ,tax
  ,applic,n ,rules7

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#dab;,r dat$ ,novemb] #f1
#aihi4


                                      #a
                ,summ>y              a#a
    
  ,c]ta9 tru/s & corpor,ns gov]n$
0def]r$ 9come plans may 2 subject 6a
special tax ": m ?an #bj@3p (! co/ am.t
( _! prop]ty 3si/s ( =eign prop]ty4 ,?
bullet9 id5tifies ! p]sons t may 2
subject 6! special tax1 4cusses v>i\s
9ve/;ts & 9dicates :e!r or n !y repres5t
=eign prop]ty4 ,9 a4i;n1 ! bullet9
describes "s rules t p]ta9 6prop]ty t
2comes =eign prop]ty af xs acquisi;n4

          ,4cus.n & ,9t]pret,n
           7p>agraphs #a-ab7
    
#a4 ,tru/s t >e gov]n$ by1 & _m (!
  corpor,ns t adm9i/]1 regi/]$ plans s*
  z regi/]$ p5.n plans1 regi/]$ retire;t
  sav+s plans & def]r$ pr(it %>+ plans
  >e g5],y exempt f tax "u ,"p ;,i4
  ,except =! tru/s = c]ta9 regi/]$ p5.n
  plans1 ! corpor,ns & tru/s >e subject
  6tax "u subsec;n #bjf7#b7 if _!
  9ve/;ts 9 =eign prop]ty exce$       #b
             ,,it-#dab;,r#b          b#a
  specifi$ limits4 ,subsec;n #bjf7#b7
  provides t ": at ! 5d ( any mon? af
  #aiic ! total (! co/ am.t ( =eign
  prop]ty exce$s g5],y #bj@3p (! co/
  am.t ( all prop]ty held at t "t1 !
  corpor,n or tru/ is subject 6a tax (
  #a@3p (! less] (! excess &! total (!
  co/ am.ts ( all =eign prop]ties
  acquir$ af ,june #ah1 #aiga4 8,co/
  am.t0 is def9$ 9 subsec;n #bdh7#a74 ,!
  specifi$ limit = mon?s 9 #aiij1 #aiia1
  #aiib & #aiic is #ab@3p1 #ad@3p1
  #af@3p & #ah@3p respectively4 ,!
  specifi$ limit may 2 9cr1s$ = taxpay]s
  describ$ 9 #b7a71 7b71 7c7 or 7e7 2l
  ": ! taxpay] holds c]ta9 small busi;s
  prop]ty4

  ,see ! curr5t v].n ( ,,it-#cbj1
  ,regi/]$ ,retire;t ,sav+s ,plans--
  ,qualifi$ ,9ve/;ts1 = a4i;nal obs]v,ns
  on subsec;n #bjf7#b74

                                      #c
             ,,it-#dab;,r#b          c#a
#b4 ,sec;n #bje li/s ! taxpay]s :o may 2
  subject 6! special tax "u subsec;n
  #bjf7#b74 ,! taxpay]s >e
  7a7 a tru/ gov]n$ 0a regi/]$ p5.n plan
    7o!r ?an a tru/ describ$ 9
    subp>agraph #bje7a77;i7 or 7;ii771
  7b7 a tru/ gov]n$ 0a regi/]$ retire;t
    sav+s plan1 a def]r$ pr(it %>+ plan
    or a regi/]$ retire;t 9come fund1
  7c7 a corpor,n1 z describ$ 9 p>agraph
    #adi7#a77o4#a71 9corporat$ & op]at$
    solely =! adm9i/r,n (a regi/]$ p5.n
    plan & a3ept$ z a fund+ m$ium =!
    purposes (! regi/r,n ( s* a plan1
--------------------------------------#b
  7d7 a corpor,n1 z describ$ 9 p>agraph
    #adi7#a77o4#b71 9corporat$ solely 9
    3nec;n )1 or =! adm9i/r,n (1 a
    regi/]$ p5.n plan & ^: %>es >e g5],y
    [n$ 0s* plans1
  7e7 a ma/] tru/ 7z describ$ 9 sec;n
    #ejja (! ,regul,ns7 ea* (!
    b5efici>ies ( : is a tru/ gov]n$ 0a
                                      #d
             ,,it-#dab;,r#b          a#b
    regi/]$ p5.n plan or a def]r$ pr(it
    %>+ plan1 or
  7f7 a regi/]$ 9ve/;t z def9$ 9
    subsec;n #bjd.d7#a74
  
  ,subp>agraphs #bje7a77;i7 & 7;ii71
  ref]r$ 6in 7a7 abv1 provide an exemp;n
  = ei a tru/ : is e/abli%$ =! exclusive
  b5efit ( non-resid5ts "w+ \tside
  ,canada or a tru/ ": ! only
  b5efici>ies >e 5titl$ 6_! b5efits
  0virtue ( employ;t \tside ,canada4
#c4 ,z supple;t$ 0sec;n #ejjj (!
  ,regul,ns1 subsec;n #bjf7#a7 (! ,act
  def9es 8=eign prop]ty0 =! purpose (
  calculat+ ! tax1 if any1 "u subsec;n
  #bjf7#b7 = c]ta9 taxpay]s li/$ 9 sec;n
  #bje4 ,=eign prop]ty 9cludes
  7a7 a %>e (a corpor,n o!r ?an a
    ,canadian corpor,n 7z def9$ 9
    subsec;n #hi7#a771 not)/&+ t ! %>e
    may 2 li/$ on a prescrib$ /ock
    ex*ange 9 ,canada 7see #c7d7 & 7e7
    2l71                              #e
             ,,it-#dab;,r#b          b#b
  7b7 a mortgage on prop]ty situat$ 9
    ,canada or else": ": ! mortgagor is
    n a resid5t ( ,canada1
  7c7 deposits 9 a bank or simil>
    9/itu;n \tside ,canada :e!r or n !y
    >e paya# 9 ,canadian curr5cy1
  7d7 a "r or w>rant 6acquire a %>e :
    wd1 if x 7 acquir$1 2 =eign prop]ty1
  7e7 a %>e ( or debt oblig,n issu$ 0a
    ,canadian corpor,n if ! corpor,n's
    %>es may r1sonably 2 3sid]$ 6derive
    _! value1 directly or 9directly1
    prim>ily f =eign prop]ty : !
    corpor,n holds z portfolio 9ve/;ts1
  7f7 = mon?s af #aiib1 9debt$;s (a non-
    resid5t p]son1 o!r ?an 9debt$;s
    issu$ or gu>ante$ by
    7;i7 ! ,9t]n,nal ,bank =
      ,recon/ruc;n & ,develop;t1
    7;ii7 ! ,9t]n,nal ,f9.e ,corpor,n1
    7;iii7 ! ,9t]-,am]ican ,develop;t
      ,bank1
    7;iv7 ! ,asian ,develop;t ,bank1
                                      #f
             ,,it-#dab;,r#b          c#b
    7;v7 ! ,c>i21n ,develop;t ,bank1 or
    7;vi7 prescrib$ p]sons1 &
  7g7 a %>e (! capital /ock ( an 9ve/;t
    corpor,n o!r ?an a regi/]$ 9ve/;t or
    "o prescrib$ 0sec;n #ejjj (!
    ,regul,ns4
  
  ,! /ate;t 9 #c7e7 does n apply 6a %>e
  (a class li/$ on a prescrib$ /ock
  ex*ange 9 ,canada ": no %>es ( t class
  h be5 issu$ af ,decemb] #d1 #aihe
  o!rwise ?an pursuant 6a writt5 agree;t
  5t]$ 962f #e3jj p4m4 ,ea/]n ,/&>d ,"t
  on t "d4

  ,ref] 6! def9i;n ( 8=eign prop]ty0 9
  subsec;n #bjf7#a7 (! ,act & sec;n
  #ejjj (! ,regul,ns =a li/+ ( prop]ties
  t 3/itute a =eign prop]ty4
#d4 ,=eign prop]ty does n 9clude
  7a7 a bond1 deb5ture or o!r debt
    oblig,n issu$ 0a resid5t ( ,canada &
  
                                      #g
             ,,it-#dab;,r#b          d#b
    express$ 9 a =eign curr5cy1 provid$
    ! issu] rema9s a resid5t ( ,canada1
--------------------------------------#c
  7b7 ,gov]n;t ( ,canada tr1sury bills
    :e!r or n express$ 9 a curr5cy o!r
    ?an ,canadian1
  7c7 -mod;y futures trad$ on a =eign
    ex*ange =a -mod;y : is situat$ 9
    ,canada1
  7d7 o!r ?an a %>e describ$ 9 #c7e7
    abv1 a %>e (a ,canadian corpor,n
    li/$ on a prescrib$ /ock ex*ange 9
    ,canada1 not)/&+ t ! %>e may 2
    ex*ang$ =a %>e t is =eign prop]ty1
  7e7 =eign curr5cy situat$ 9 ,canada1 &
  7f7 a mortgage or o!r debt oblig,n
    issu$ 0a resid5t ( ,canada & secur$
    0r1l prop]ty situat$ \tside ,canada1
    provid$ ! 9debt$;s does n provide !
    hold] ) an 9t]e/ in1 or a "r
    6acquire1 a =eign prop]ty & is n
    3v]ti# 96or ex*angea# =a =eign
    prop]ty4
                                      #h
             ,,it-#dab;,r#b          a#c
#e4 ,p>agraph 7;i7 (! def9i;n ( 8=eign
  prop]ty0 9 subsec;n #bjf7#a7 provides
  t except z prescrib$ 0,regul,n1 any
  9t]e/ in1 or "r 6acquire an 9t]e/ in1
  a tru/ 7o!r ?an a regi/]$ 9ve/;t7 or a
  "pn]%ip is =eign prop]ty4 ,? m1ns1 =
  example1 t an 9t]e/ 9 a ma/] tru/ is
  =eign prop]ty (a tru/ =a regi/]$ p5.n
  plan4 ,h["e subsec;n #ejjj7#a.b7 (!
  ,regul,ns provides t a prop]ty (a
  b5efici>y (a ma/] tru/ is n =eign
  prop]ty (! b5efici>y at ! "t ":
  7a7 no o!r prop]ty (! b5efici>y is
    =eign prop]ty at t "t2 or
  7b7 ! ma/] tru/ does n [n any =eign
    prop]ty at t "t4
#f4 ,pursuant 6subsec;n #bjf7#b.a71
  subsec;n #bjf7#b7 does n apply 6a ma/]
  tru/ or a corpor,n describ$ 9 p>agraph
  #adi7#a77o4#b7 = any mon? t is cov]$
  0an elec;n "u subsec;ns #bei7#a7 &
  7#c74 7,subsec;n #bei7#c7 p]mits a
  tru/ or a corpor,n 6elect s t !
  b5efici>ies (! tru/ or !            #i
             ,,it-#dab;,r#b          b#c
  %>ehold]s (! corpor,n >e 3sid]$ 6hold
  a propor;nate 9t]e/ 9 ! "uly+ assets
  (! tru/ or corpor,n =! purposes (1
  am;g o!r ?+s1 ! =eign prop]ty provi.ns
  (! ,act47 ,prior 6#aiib1 s* elec;ns 7
  only availa# 6ma/] tru/s4
#g4 ,prop]ty may 2come =eign prop]ty af
  x is acquir$4 ,= example1 if a
  ,canadian corpor,n has a portfolio (
  9ve/;ts 9 ,canada & abroad & "s or all
  (! ,canadian 9ve/;ts >e r1liz$ &!
  proce$s 4burs$1 !n ! %>es (! ,canadian
  corpor,n 2come =eign prop]ty s9ce !y w
  derive _! value prim>ily f =eign
  prop]ty z describ$ 9 #c7e7 abv4 ,=
  mon?s 5d+ af ,decemb] #bj1 #aiia1
  subp>agraph #bjf7#b77a77;iii7 provides
  t ": prop]ty has 2come =eign prop]ty
  af xs acquisi;n1 xs co/ am.t w n 2
  9clud$ 9 calculat+ tax "u subsec;n
  #bjf7#b7 =a p]iod ( #bd mon?s af ! "t
  ! prop]ty *ang$ xs /atus4 ,9 \r
  example1 if ! %>es (! ,canadian
  corpor,n 2came =eign prop]ty on    #aj
             ,,it-#dab;,r#b          c#c
  ,may #ae1 #aiic & !y 7 n 4pos$ (1 !
  co/ am.t (! %>es w n 2 9clud$ 9 ! tax
  calcul,n "u subsec;n #bjf7#b7 until
  ,may #ca1 #aiie1 ! f/ 5d (! mon?
  foll[+ ! #bd mon? p]iod4
#h4 ,= mon?s 5d+ af ,decemb] #bj1 #aiia1
  subsec;n #bjf7#c.a7 ext5ds ! relief
  provid$ 0subp>agraph #bjf7#b77a77iii7
  6two situ,ns3
  7a7 ": a corporate secur;y t is n
    =eign prop]ty is ex*ang$ =a new
    secur;y t is =eign prop]ty1 9 !
    c\rse (
    7;i7 a corporate m]g] or reorganiz,n
      ( capital or
    7;ii7 a transac;n 9 : "! is a *ange
      ( 3trol (! corpor,n : issu$ !
      secur;y
  ! new secur;y is deem$ 6h 2come =eign
  prop]ty at ! "t ( xs issue & x w n
  fall )9 ! ambit ( subsec;n #bjf7#b7
  until ! 5d (! mon? foll[+ ! #bd mon?
  p]iod1 &
                                     #aa
             ,,it-#dab;,r#b          d#c
  7b7 ": a corporate secur;y 7! orig9al
    secur;y7 t is =eign prop]ty 6a
    taxpay] is ex*ang$ = ano!r corporate
    secur;y 7! ex*ang$ secur;y7 t is
    =eign prop]ty 6! taxpay]1 9 ! c\rse
    (
--------------------------------------#d
    7;i7 a corporate m]g] or reorganiz,n
      ( capital or
    7;ii7 a transac;n 9 : "! is a *ange
      ( 3trol (! corpor,n : issu$ !
      orig9al secur;y1
  ! ex*ang$ secur;y is deem$ 6h 2come
  =eign prop]ty at ! "t ! orig9al
  secur;y 2came =eign prop]ty4 ,if !
  orig9al secur;y did n fall )9 ! ambit
  ( subsec;n #bjf7#b7 0virtue (
  subp>agraph #bjf7#b77a77;iii71 !
  ex*ang$ secur;y w 2 exempt f 9clu.n 9
  t subsec;n =! same p]iod4
#i4 ,": a taxpay] :o held %>es t 7 =eign
  prop]ty exempt f subsec;n #bjf7#b7 tax
  2c !y 7 acquir$ 2f ,june #ai1 #aiga1
  ex*anges !m 9 an amalgam,n af      #ab
             ,,it-#dab;,r#b          a#d
  ,june #ah1 #aiga = new %>es : >e =eign
  prop]ty1 ! new %>es d n reta9 t
  exemp;n except z not$ 9 #aj 2l4
#aj4 ,subsec;n #fe7#e7 (! ,9come ,tax
  ,applic,n ,rules provides t ! loss (
  exemp;n ref]r$ 6in #i abv w n o3ur ":
  two or m mutual fund corpor,ns
  amalgamate af ,may #be1 #aigf &
  7a7 ! ex*ang$ %>es 7 [n$ on ,june #ah1
    #aiga & "!af )\t 9t]rup;n until
    immly 2f ! amalgam,n 0a type ( tru/
    or corpor,n ref]r$ 6in p>agraph
    #bje7a7 7see #b7a71 7c71 7d7 & 7e7
    abv71 or 0a tru/ gov]n$ 0a regi/]$
    retire;t sav+s plan or a def]r$
    pr(it %>+ plan1
  7b7 ! ex*ang$ %>es 7 =eign prop]ty
    immly 2f ! amalgam,n1 &
  7c7 ! %>es (! new corpor,n 7 ! only
    3sid],n rcvd =! ex*ang$ %>es4
#aa4 ,=eign prop]ties t >e id5tical
  prop]ties acquir$ 2f ,june #ai1 #aiga
  =m a pool sep>ate f ^? acquir$ af
  ,june #ah1 #aiga =! purpose (      #ac
             ,,it-#dab;,r#b          b#d
  det]m9+ :e!r a "picul> 4posi;n is (
  prop]ty exempt f ! =eign prop]ty rules
  7^? prop]ties acquir$ 2f ,june #ai1
  #aiga7 or subject 6! =eign prop]ty
  rules 7^? prop]ties acquir$ af ,june
  #ah1 #aiga74 ,4posi;ns w 2 3sid]$ z 2+
  f/ f ! =m] pool &1 :5 x is deplet$1 f
  ! latt] pool4
#ab4 ,provid$ t "! is no *ange 9 !
  annuitant1 ! transf] ( all (! prop]ty
  (a tru/ ( an unmatur$ self-adm9i/]$
  regi/]$ retire;t sav+s plan f "o
  tru/ee 6ano!r pursuant 6subsec;n
  #adf7#af7 does n 3/itute a 4posi;n or
  acquisi;n =! purposes ( subsec;ns
  #bjf7#a7 & 7#b74







                                     #ad
             ,,it-#dab;,r#b          c#d
  ,if y h any -;ts reg>d+ ! matt]s
4cuss$ 9 ? bullet91 pl1se s5d !m to3

  ,director1 ,te*nical ,public,ns
    ,divi.n
  ,policy & ,legisl,n ,bran*
  ,rev5ue ,canada
  #hge ,h]on ,road
  ,ottawa ,,on ,k#a;,a #j;,l#h
  













                                     #ae
         ,explan,n ( ,*anges =        #e
          ,9t]pret,n ,bullet9
             ,,it-#dab;,r#b
    
       ,=eign ,prop]ty ( ,regi/]$
                 ,plans
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ de"p;tal
9t]pret,ns4

                ,ov]view
    
  ,! bullet9 notes t :ile tru/s t >e
gov]n$ by1 & _m (! corpor,ns t adm9i/]1
regi/]$ plans >e g5],y exempt f ,"p ;,i
tax1 !y may 2 subject 6tax "u subsec;n
#bjf7#b7 on _! =eign prop]ty4 ,! bullet9
id5tifies ! taxpay]s :o may 2 subject
6tax "u t subsec;n1 describes "s     #af
             ,,it-#dab;,r#b          a#e
prop]ty t is =eign prop]ty & o!r prop]ty
t is n & notes "s special rules 3c]n+
=eign prop]ty4
  ,! bullet9 reflects am5d;ts 6! ,9come
,tax ,act result+ f ,s4,c4 #aiid1 c#g1
,s*4,,viii 7#aiic1 c4#bd--=m]ly ,bill
;,c-#ib7 & ,s4,c4 #aiid1 c4#ba 7=m]ly
,bill ;,c-#bg74

       ,legislative & o!r *anges
    
  ,! ,summ>y has be5 revis$ 6note t
corpor,ns & tru/s w n 2 subject 6!
special tax ref]r$ 6in ! bullet9 if n m
?an #bj@3p (! co/ am.t (! prop]ty (!
corpor,n or tru/ is =eign prop]ty &
6describe m fully ! 3t5ts (! bullet94
  ,new ,numb] #a has be5 a4$ 6provide "s
-;ts on ! special tax describ$ 9
subsec;n #bjf7#b74
  ,numb] #b1 7=m] ,numb] #a7 has be5
exp&$ 6id5tify all (! taxpay]s :o may 2
subject 6! special tax on =eign
prop]ties4                           #ag
             ,,it-#dab;,r#b          b#e
  ,numb] #c7f7 reflects a ,bill ;,c-#bg
am5d;t 6p>agraph 7g7 (! def9i;n ( 8=eign
prop]ty0 9 subsec;n #bjf7#a74 7,! =m]
,numb] #b7f7 0 an example ( t p>agraph47
,! li/ 9 ,numb] #c7f7 is ! -plete li/ (
9/itu;ns describ$ 9 p>agraph 7g7 (!
def9i;n ( 8=eign prop]ty0 9 subsec;n
#bjf7#a74
  ,numb] #c7g7 is a new subp>agraph :
has be5 a4$ 6,numb] #c 7=m] ,numb] #b7
6note t1 ) excep;ns1 ! capital /ock ( an
9ve/;t corpor,n is =eign prop]ty4
  ,numb] #d7f7 is a new subp>agraph :
has be5 a4$ 6,numb] #d1 7=m] ,numb] #c7
6describe an a4i;nal type ( prop]ty t is
n =eign prop]ty4
  ,new ,numb] #e has be5 a4$ 6describe
subsec;n #ejjj7#a.b7 (! ,regul,ns :
provides an excep;n 6p>agraph 7;i7 (!
def9i;n ( 8=eign prop]ty0 9 subsec;n
#bjf7#a74
  ,new ,numb] #f has be5 a4$ 6describe
subsec;n #bjf7#b.a7 : exempts ma/] tru/s
& corpor,ns describ$ 9 p>agraph      #ah
             ,,it-#dab;,r#b          c#e
#adi7#a77o4#b7 f ! applic,n ( subsec;n
#bjf7#b7 ": an elec;n is made "u
subsec;n #bei7#c7 6h ! 8look-"?0 rules 9
subsec;n #bei7#a7 apply4 ,bill ;,c-#bg
ext5sively am5d$ sec;n #bei & revis$
subsec;n #bjf7#b.a7 6add a ref];e
6corpor,ns describ$ 9 p>agraph
#adi7#a77o4#b74
  ,new ,numb] #g describes subp>agraph
#bjf7#b77a77;iii7 7a4$ 0,bill ;,c-#ib7 :
applies ": prop]ty 2came =eign prop]ty
af xs acquisi;n 6provide a p]iod ( "t 2f
subsec;n #bjf7#b7 2comes applica#4
  ,new ,numb] #h describes subsec;n
#bjf7#c.a7 7a4$ 0,bill ;,c-#ib7 : ext5ds
! relief provid$ 0subp>agraph
#bjf7#b77a77;iii7 6situ,ns ": "! has be5
a corporate m]g]1 reorganiz,n or *ange 9
3trol (a corpor,n4
  ,numb] #aa 7=m] ,numb] #f7 has be5
revis$ 6bett] describe :at prop]ty is !
taxa# pool ) reg>d 6id5tical prop]ties4
  ,numb] #ab 7=m] ,numb] #g7 has be5
revis$ 6cl>ify ! 3di;ns "u : !       #ai
             ,,it-#dab;,r#b          d#e
prop]ty ( an ,,rrsp c 2 transf]r$ f "o
tru/ee 6ano!r s t ! transf] w n 2 reg>d$
z a 4posi;n or acquisi;n =! purposes (
subsec;ns #bjf7#a7 & 7#b74
  ,"?\t ! bullet9 we h *ang$ "s (! ^w+
&! ord] ( "s p>agraphs 6improve
r1dabil;y )\t alt]+ ! sub/.e4 ,9 a4i;n1
/ate;ts 3c]n+ dates : >e no l;g]
relevant h be5 remov$4














                                     #bj