Where the trustee of an investment trust has discretion as to the timing of distributions of income or capital, but not as to their allocation amongst the beneficiaries, does this discretion disqualify the trust under para. (h) of the definition?
CRA indicated that mere “choice of the payment date of an amount of income or capital” would not have that impact, but that where there was also discretion to change the beneficiaries’ respective shares through choice of the date on which such shares were calculated, it would follow that “the share of income or capital allocated to each of the beneficiaries could vary in a taxation year depending on the exercise of this discretion.”