At the 2016 CTF Roundtable, Q.1, CRA considered that it generally would consider it to be an abusive circumvention of the rule for the realization by a trust of gains on its 21st anniversary (and of the related anti-avoidnace rule in s. 104(5.8)) to distribute the property of a discretionary trust to a corporate beneficiary who was owned by a new discretionary trust. At that time, CRA indicated that it was still considering whether it would also be objectionable from a GAAR perspective if under the structure the realization of the accrued gains on the trust property would not be deferred beyond the lifetime of those who were beneficiaries at the time of the 21st anniversary of old Trust. Thus, the realization event, i.e. the death of the individual beneficiary, would be consistent with that achieved by a deferred rollover of property to a Canadian resident individual beneficiary pursuant to s. 107(2) (although, in fact, the trust property would continue to be held indirectly in a discretionary trust.)
CRA confirmed that it would consider this more limited type of deferral to also represent an abuse of s. 104(5.8) on which it would not provide a GAAR ruling.