Regarding the situation where a trust receives bank loans that are guaranteed by Mr. A, who along with his spouse is a trustee, CRA noted:
[A] bona fide loan to a trust would not, in and of itself, result in property being "held" by the trust under one or more of the conditions described in subsection 75(2) (i.e., it would not, in and of itself, result in the application of subsection 75(2)), if the loan is external to and independent of the terms of the trust. The fact that a loan is external and independent of the terms of the trust is one of the factors in determining whether the relationship between the person making the loan and the trust is one of "lender/borrower" or "settlor/trustee".
…[T]he borrower's written and signed acknowledgement of a loan and the borrower’s agreement to repay it within a reasonable period of time is usually acceptable evidence of the genuineness of the loan. If, in addition, there is evidence that the borrower has guaranteed the loan, paid interest on it or made payments to repay it, the genuineness of the loan is recognized. …
The fact that a trustee guarantees bank loans made to the trust does not, in itself, give rise to the application of the provisions of subsection 75(2). However, the trustee may be subject to the attribution rules in subsection 74.5(7) where the bank loans are made directly or indirectly to or for the benefit of a specified person with respect of the trustee.