| December 17, 1990 | |
| Trust and SER Assessing Section | Rulings Directorate |
| Assessing and Enquiries Directorate | R.D. Mundell |
| (613) 957-2139 | |
| Attention: D.I. Wyse | |
| Chief | 7-902389 |
SUBJECT: Exempt Persons - 149(1)(l)
This will reply to your request of September 10, 1990 concerning the extension of paragraph 149(1)(l) of the Income Tax Act to the 24(1)
The definition of a trust in subsection 248(1) refers to the meaning assigned by subsection 104(1) which states that reference to a trust is to be read as reference to the trustee or the executor, administrator, heir or other legal representative having ownership or control of the trust property. Subsection 248(1) defines individual as a person other than a corporation. If the preamble to 149(1) which refers to a "person for a period when that person was", is read with paragraph 149(1)(l) "a club, society or organization", it appears that a trust qualifies as an organization as referred to in 149(1)(l). (The Exchequer Court in Estate of Hubert Harshman v MNR 71 DTC 5202 reached the conclusion that a trust could be an "organization").
24(1)
24(1)
Another requirement of paragraph 149(1)(l) is that no part of the income of the organization be available for the personal benefit of any "proprietor, member or shareholder".
24(1) It is our view that a beneficial owner qualifies as proprietor for purposes of paragraph 149(1)(l) to whose benefit income might be made available 24(1)
Finally, we note that ideally the enabling documents of a non-profit organization should provide that upon winding-up, amalgamation or dissolution all of its assets and accumulated income are to be transferred to an organization with similar objects which qualifies for exemption pursuant to paragraph 149(1)(f) or (l) of the Act.
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch