8 June 2020 External T.I. 2019-0822901E5 - Mutual Fund Trusts -- summary under Paragraph 4801(b)

An individual has a non-registered account and is a holder of a TFSA and an annuitant of a RRSP. The individual is also a contributor to a spousal or common-law partner RRSP. The non-registered account and each of the registered plan trusts hold units of the same class of the mutual fund trust (“MFT”) that satisfy the requirement of being a block of units having a fair market value of at least $500.

CRA stated:

[T]here are four beneficiaries for purposes of satisfying the 150 beneficiary requirement. The individual and each registered plan trust count as a separate beneficiary.

Notwithstanding our general view described above, we note that the CRA has previously applied … GAAR … in situations where mutual fund trust status was artificially achieved to facilitate abusive tax avoidance.

The CRA summary noted:

There is no requirement to look through the registered plan trust.

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