20 November 1990 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
658153
Extra import data
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"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1990 [DC90_029.031 - NV90_431.432]/NV90_149 — Designation for Income Beneficiaries of a Trust"
],
"field_proprietary_citation": [],
"field_release_date_new": "1990-11-20 07:00:00",
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}
Main text
24(1)
                                        5-902882
                                        M.P. Baldwin
                                        (613) 957-3499
          19(1)

November 20, 1990

Dear Sirs:

Re: Designation under subsection 104(13.1) of the Income Tax Act (the "Act")

This is in reply to your letter of October 4, 1990, in which you requested an interpretation of the meaning of "D" in the formula in subsection 104(13.1) of the Act.

It is our view that "D" of the subsection 104(13.1) formula refers to the total amount deducted for the year by the trust under subsection 104(6) of the Act.

As indicated in the Department of Finance's Explanatory Notes issued in June 1988, it was not intended that a subsection 104(13.1) designation be made for only one of two or more income beneficiaries. Rather, its purpose was to provide a mechanism for a trust to designate to all its beneficiaries their respective shares of that portion of the trust's actual income distributions that was not deducted by the trust in computing its income for the year. It is our view that the application of the formula to the situation described above will produce a result that is in accordance with this stated intent.

We trust the above comments will be of assistance to you.

Yours truly,

for Director Financial Industries Division Rulings Directorate