A Canadian corporation is wholly owned by a trust, which is a discretionary trust, so that s. 256(7)(i) does not apply to changes in its trustees. CRA considered there to be a rebuttable presumption that all of the trustees constitute a group that controls the corporation - so that there would be an acquisition of control, for example, if the trust deed required trustee decisions to be made by a majority of the three trustees, and one of their number was replaced by an unrelated trustee.
However, CRA considered that where the replacement trustee is a related person, s. 256(7)(a)(i)(A) may apply to deem there to be no acquisition of control. In particular, it indicated that s. 256(7)(a)(i)(A) may so apply in the following examples, provided that the replacement trustee is appointed concurrently with the resignation of the former trustee:
(a) The sole trustee resigns and is replaced by a related trustee,
(b) The trust has two trustees, who are required by the trust deed to make their decisions unanimously. One of them (E) resigns and is replaced by an individual related to E.