How is a SIFT trust's tax calculated

Every specified investment flow-through (SIFT) trust for a tax year is liable to a tax under Part 1 of the Income Tax Act, calculated as the total of the two following amounts: Footnote 1

  1. 33% of its amount taxable for the tax year, and
  2. the positive or negative amount determined by the following formula:
  • A × B where
    • A is the positive or negative decimal fraction determined by the following formula:
      • C + D − E where
        • C is the net corporate income tax rate in respect of the SIFT trust for the tax year
        • D is the tax rateFootnote 2 for a SIFT trust for the tax year
        • E is the decimal fraction equivalent of the percentage rate of tax provided in (a) for the tax year
    • B is the trust's taxable distributions for the tax year

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