A non-resident holder of a self-directed TFSA trust argued that as she made all the investment decisions, the trust was not resident in Canada. The Directorate noted that (as required by s. (b)(i) of the definition of qualifying arrangement in s. 146.2(1)) the trustee was a Canadian trust company, noted that the trustee was required under the Act “to maintain and exercise key decision-making powers and responsibilities over the trust” (e.g., ensuring compliance with ITA requirements including monitoring for non-qualified investments and ensuring all transactions occurred at fair market value), and stated:
In light of these statutory duties and obligations, the central management and control of a TFSA trust will rest with, and be exercised by, the trustee in Canada … [so that] a TFSA trust will always be considered resident in Canada for the purposes of the Act.
The Directorate similarly stated that RRSPs, RRIFs, RESPS and RDSPs “will always be considered resident in Canada.”