22 December 2016 External T.I. 2015-0608201E5 F - Capital distribution from trust & NR4 -- summary under Subsection 212(11)

Although s. 212(11) deems all trust capital distributions to a non-resident beneficiary to be income distributions for Part XIII purposes, s. 212(1)(c) only imposes Part XIII tax on s. 104(13) income and capital dividend distributions. However, having regard to s. 212(11) and Reg. 202(1)(c), a Canadian-resident trust must report all capital distributions made to a non-resident beneficiary on Form NR4.