In confirming that neither the non-resident portion trust nor the particular trust is required to file form T1135 under s. 233.3 where a deemed resident trust has elected to have s. 94(3)(f) apply, and after noting that the particular trust does not hold any foreign property, CRA stated:
A specified Canadian entity is defined by subsection 233.3(1) as a taxpayer resident in Canada with certain exceptions which are not applicable.. . Since the non-resident portion trust is not a deemed resident trust, it is not resident in Canada and is not a specified Canadian entity.
Subparagraph 94(3)(f)(ii) of the Act provides that all of the particular trust’s property that is part of the non-resident portion is deemed to be property of the non-resident portion trust and not to be property of the particular trust… . [A]s… the particular trust does not have any foreign property… it would not have any specified foreign property as defined by subsection 233.3(1)… .