Chapter History S6-F1-C1, Residence of a Trust or Estate


The purpose of this Chapter History page is to highlight any amendments to the information contained in an interpretation bulletin that is now reflected in a chapter of an income tax folio as well as to identify any subsequent amendments to a folio chapter. It outlines amendments that have been made as a result of legislative changes and proposed legislative changes, precedential court decisions, as well as new or revised interpretations of the Canada Revenue Agency (CRA).

Update November 25, 2015

Minor changes have been made to improve the usability of the income tax folios:

  • the Summary section has been moved to the top of each folio chapter to be more immediately visible and helpful to readers;
  • the Application and Reference sections have been moved to the end of the Chapter which is more appropriate for administrative content of this nature.  However, these sections now appear in the Table of contents for easy access;
  • the statement that folios are only available in electronic format has been moved to the end of the Application section; and
  • the words “as promulgated under the Act” in connection with the Income Tax Regulations have been removed from the Application section, in the interest of using plain language.

Update February 3, 2015

¶1.5 of the French version only has been updated for clarity purposes. The phrase “soit l’auteur ou les bénéficiaires de la fiducie” contained in the first sentence has been replaced by “notamment l’auteur ou un bénéficiaire de la fiducie”.

Update September 19, 2014


Income Tax Folio S6-F1-C1, Residence of a Trust or Estate, replaces and cancels Interpretation Bulletin IT–447, Residence of a Trust or Estate

In addition to consolidating the content of the former interpretation bulletin, general revisions have been made to improve readability. Any substantive technical and interpretive changes to the information outlined in the former interpretation bulletin are described below. Except as otherwise noted, all statutory references herein are references to provisions of the Income Tax Act, R.S.C. 1985 (5th supp.), c.1, as amended and any references to a Regulation are to the Income Tax Regulations, C.R.C., c. 945, as amended and as promulgated under the Act.

Legislative and other changes

 The Summary has been added to provide readers with a brief outline of the content of the Chapter.

¶1.1 and ¶1.2 (formerly included in ¶1 of IT-447) have been updated to reflect the decision of the Supreme Court of Canada in Fundy Settlement v Canada (2012 DTC 5063, 2012 SCC 14) which clarified that a trust will be considered to be resident where the central management and control of the trust actually takes place.
¶2 of IT-447 has been deleted from the content of this Chapter. The list of possible powers and responsibilities of a trustee in relation to the management of the property of a trust is a question of fact.

¶1.3 has been amended to note that the Supreme Court of Canada affirmed the CRA view that the residence of the trustee does not always determine the residence of a trust.

¶1.6 has been added as a result of the decision in Fundy Settlement. The comments formerly contained in ¶4, ¶6 and ¶7 of IT-447 in respect of residency dealing with parties not having central management and control of the property of the trust have been deleted.

¶1.8 - 1.9 have been added to reflect the legislative amendments to the non-resident trust rules made by S.C. 2013, c.34 (formerly Bill C-48), effective for tax years that end after 2006 (subject to an election for earlier adoption).

¶1.10 has been added to note the amendments to section 4.3 of the Income Tax Conventions Interpretations Act as it relates to the deemed residence of a trust under subsection 94(3).

¶1.11 (formerly ¶10 of IT-447) has been amended to reflect the legislative change made by S.C. 2013, c. 40 (formerly Bill C-4) that a trust must be resident in Canada in order for the attribution rule in subsection 75(2) to apply in respect of property held by the trust.

¶1.12 has been added to note that subsection 250(6.1) will deem a trust that ceases to exist at any time in a tax year, and that was resident in Canada immediately before it ceased to exist, to be resident in Canada during the remaining period in the year.

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