| EACC 9240 | |
| February 12, 1990 |
Revenue Canada TaxationPublications DivisionLegislative and Government Affairs Branch 123 Slater StreetOttawa, OntarioK1P 5H2
Dear Sirs:
Attention: Mr. Roy Schultis
There seems to be a discrepancy between s. 73(1) of the Income Tax Act (the "Act") and paragraph 5(b) of the Interpretation Bulletin IT-209R concerning whether the beneficiary spouse needs to be a resident of Canada when an inter vivos spouse trust is created. Paragraph 5(b) of the Interpretation Bulletin IT-209R, states that both the taxpayer creating a spouse trust and his spouse must be resident in Canada at the time the trust is created.
However, my reading of s. 73(1) of the Act is that only the taxpayer and the transferee (i.e the trust ) need to be resident in Canada. It would be appreciated if you could send me some information clarifying this issue.
Yours very truly,