Subsection 122(1) - Tax payable by inter vivos trust
Administrative Policy
9 March 1993 Memorandum (Tax Window, No. 29, p. 10, ¶2453)
Where the residuary beneficiaries of a non-spousal testamentary trust that provides for the distribution to a third beneficiary of all the...
Paragraph (c)
Paragraph 122(1)(c)
Articles
Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Classification of Trusts for Income Tax Purposes", Chapter 2 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.
General effect of formula (p. 70)
[T]he amount: of the recovery tax is calculated in accordance with a complicated formula in paragraph 122(1) (c)...
Subsection 122(2) - Where subsection (1) does not apply
Cases
Robinson (Trustee Of) v. R., 98 DTC 6065, [1998] 1 CTC 272 (FCA)
An inter vivos trust that otherwise would have been grandfathered was found to be carrying on an active business in the year by virtue of being a...
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 7, 2016-0651751C6 F - Recovery Tax of Qualified Disability Trust
A testator created a trust for the benefit of his mentally incapacitated son, with the trustees accorded the discretion to distribute income and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(2) | potential liability of QDT trustee for s. 122(1)(c) recovery tax | 262 |
| Tax Topics - Income Tax Act - Section 122 - Subsection 122(3) - qualified disability trust | s. 122(1)(c) liability in year of death of disabled beneficiary | 55 |
Subsection 122(3)
qualified disability trust
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 7, 2016-0651751C6 F - Recovery Tax of Qualified Disability Trust
CRA confirmed that where the disabled beneficiary of a qualified disability trust dies during a year, this will result in the imposition of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 122 - Subsection 122(2) | recovery tax applies to undistributed income in a QDT at the time of the disabled beneficiary’s death | 213 |
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(2) | potential liability of QDT trustee for s. 122(1)(c) recovery tax | 262 |
10 June 2016 STEP Roundtable Q. 4, 2016-0645801C6 - QDT & pref beneficiary election
Where, for example, four grandparents each established a trust for their mutual disabled grandchild under their wills, with one of the trusts...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(14) | preferred beneficiary election and qualified disability trust election potentially can coexist | 116 |
Finance
7 October 2016 APFF Financial Strategies and Instruments Roundtable, Q.7
[policy reasons for QDT graduated rates and requirement to distribute]
A...
Paragraph (a)
Subparagraph (a)(i)
Administrative Policy
7 June 2019 STEP Roundtable Q. 11, 2019-0805771C6 - Estate as Qualified Disability Trust
During its first 36 months, an estate with a single residuary beneficiary qualified as a graduated rate estate (GRE) and was not able to convert...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) | estate ceases to generate income when it is fully administered | 144 |
Paragraph (b)
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 6, 2016-0651741C6 F - Named beneficiary
Does a will designating the testator’s children or descendants as beneficiaries of the testamentary trust satisfy the “named as a...