Chart 1 - Taxable SIFT trust distributions

Taxable income					A
Non-deductible distributions amount		÷ *___%			B
Taxable SIFT trust distributions (line A or B, whichever is less)					C

* Enter the rate determined by the following formula:

1 – (net corporate income tax rate + provincial/territorial SIFT tax component)

The amount on line 48 of the T3 return must be equal to or greater than the
non-deductible distributions amount.

Note 1
Ensure the non-deductible distributions amount that is deemed to be dividends received by the beneficiaries from a taxable Canadian corporation has been included in the allocation of dividends on T3 Schedule 9, but has not been deducted at line 47 of the T3 return.

Note 2
If the trust has income in multiple jurisdictions, provide a breakdown of the non-deductible distributions amount attributed to each jurisdiction.

Chart 2 - SIFT trust tax calculation

Taxable income		× 29%			A
Distribution tax
Taxable SIFT trust distributions (line C, Chart 1)		×*___%		+	B
Tax on taxable SIFT trust income (line A plus line B)					C
If the rate used in the calculation of line B was negative, deduct line B from line A.
* Enter the amount determined by the following formula:
Net corporate income tax rate + provincial/territorial SIFT tax component - 29%
Enter the amount from line C on line 9 of T3 Schedule 11, Federal Income Tax.
Provincial or territorial distribution tax
Taxable SIFT trust distributions (line C, Chart 1)		× *___%			D

*Enter the appropriate provincial/territorial SIFT tax component

The amount from line D is included in line C; this amount is calculated for statistical purposes only. Do not enter it on the T3 return or schedules.

Chart 3 - Provincial or territorial taxable income

Enter the amount from line C on line 1 of the trust's T3 provincial or territorial tax form.

Chart 4 - Adjusted net income

Use the amount from line C in the place of net income when applicable for calculating the following amounts:

• foreign tax credits on Form T2036, Provincial or Territorial Foreign Tax Credit;
• capital gains refunds on Form T184, 2009 Capital Gains Refund for a Mutual Fund Trust; and
• net income allocations to multiple jurisdictions on Form T3MJ, T3 Provincial and Territorial Taxes for 2009 - Multiple Jurisdictions. When calculating the refundable Quebec abatement on Form T3MJ, use the trust's net income.

Chart 5 - Calculating the gross-up amount of dividends retained or not designated by a SIFT trust

Enter the amount from Line 949, Part A, of T3 Schedule 9.	−                                Enter the amount of dividends designated as eligible SIFT deemed dividends.		=                           Enter the total on line 19 of T3 Schedule 8.
Enter the amount from Line 923, Part A, of T3 Schedule 9.	−                                Enter the amount of dividends designated as other than eligible SIFT deemed dividends.		=                           Enter the total on line 26 of T3 Schedule 8.

Note
Use the above formula to calculate the amount of Line 32, Part B of T3 Schedule 8.

Chart 6 - Refundable Quebec abatement

Note
If the trust has income in multiple jurisdictions, calculate the trust's refundable Quebec abatement on Form T3MJ, T3 Provincial and Territorial Taxes for 2009 - Multiple Jurisdictions.

Chart 7 - Net corporate income tax rate (non calendar year trusts)

If the trusts' fiscal period is not based on a calendar year, calculate the net corporate income tax rate as follows:

# of days in period 1 # of days in tax year		=	× ___%			1
# of days in period 2 # of days in tax year		=	× ___%		+	2
Net corporate income tax rate (line 1 plus line 2)					=	3

Chart 8 - Provincial/Territorial net corporate income tax rate

If based on the trust's tax year, more than one rate applies, complete this chart to determine the provincial/territorial net corporate income tax rate.

# of days in period 1 # of days in tax year		=	× ___%			1
# of days in period 2 # of days in tax year		=	× ___%		+	2
Net corporate income tax rate of a province or territory (line 1 plus line 2)					=	3

If the trust has permanent establishments in multiple jurisdictions, use the following formula to determine the prorated general corporate income tax rate for each province/territory. Repeat the calculation for any additional provinces/territories, then enter the total of all amounts on line 5.

Taxable SIFT trust distributions attributed to a province/territory Taxable SIFT trust distributions	=	× ___%			4
Total (from all provinces/territories)				=	5

If the trust has any taxable SIFT distributions that could not be attributed to a province or territory, continue below.

1 minus	Taxable SIFT trust distributions attributed to provinces/territories Taxable SIFT trust distributions	=	× 0.1		+	6
Prorated general corporate income tax rate (line 5 plus line 6)					=	7