An individual disposed of capital property to a discretionary trust (whose beneficiaries were the individual and spouse and their children) in consideration for property (other than a debt obligation) having the same fair market value. One year after the sale, the trust disposed of the capital property to a third party and distributed and allocated the resulting taxable capital gain to the spouse under s. 104(21). How would ss. 74.2(1) and 74.5(1) apply? After discussing the potential non-applicability of the s. 74.2(1) attribution rules, CRA stated:
[T]he CRA generally considers the condition in subparagraph 75(2)(a)(i) to be satisfied where a person from whom property was received directly or indirectly by a trust holds a capital interest (whether or not subject to discretion) in that trust.