91-23-778
24(1)
5-911714
August 29, 1991
Dear Sirs:
Re: 19(1)
We are writing in reply to your facsimile transmission of June 18, 1991, which was forwarded to us by the Returns Processing Division of this department on June 20, 1991. You asked a number of questions concerning the income tax treatment and filing requirements relating to trusts, and explained that the reason you required this information was to determine whether certain real property is property of a trust.
In Canada the law of trusts is a subject which comes under provincial jurisdiction as a matter of property and civil rights. Although a trustee might file a Trust Income Tax Return and Information Return (T3) for a trust which treats real property as if owned by the trust, proof of title could only be ascertained by reference to the trust indenture and the title documents.
Although you will not be able to rely on the income Tax law relating to trusts to prove that the real property in question belongs to the above noted Trust, we enclose a copy of the T3 Guide and Trust Return for your information. See in particular the commentary relating to lines 9 and 21
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate