An individual settled a trust with a gold bar, which it will hold until its winding-up. Such settlor is a contingent beneficiary (i.e., will receive the bullion if all the other beneficiaries predecease that individual, so that s. 75(2)(a)(i) is satisfied. In indicating that for the purposes of s. 107(4.1)(b), "subsection 75(2) was applicable..." despite no income or capital gain ever being attributed pursuant to s. 75(2), CRA stated:
[W]here the provisions of subsection 75(2) of the Act were applicable at any time in respect of any property of a trust, the taxpayer is subject to the provisions of subsection 107(4.1) on the distribution of any property of the trust. Although, depending on the facts of your hypothetical situation, no income of the trust may have been attributed to the settlor of the trust pursuant to subsection 75(2), that subsection remains applicable.