19 December 2013 External T.I. 2013-0503481E5 - Distribution of property by a trust -- summary under Subsection 107(2)

After referring to 2013-0488061E5 (below) and 2013-0488381E5, CRA stated:

[A] transfer of property by a trustee in settlement of a debt cannot also be a distribution for purposes of subsection 107(2)…; it is one or the other. A distribution is the fulfilment of a fiduciary duty owed to the beneficiary in respect of the trust property. Thus, for the portion of a transfer of value that settles a debt owing by the trust, the preamble to subsection 107(2) of the Act is not met, and by extension, paragraph 107(2)(a) will not apply.

Topics and taglines
Topic
Income Tax Act - s. 107(2)
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
319559
Words and phrases
distribution
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
341472
Extra import data
{
"field_editor_tags": [],
"field_roundtable_subquestion": "",
"field_stub": false,
"field_legacy_header": "<a name=\"2013-0503481E5\"></a><a href=\"/?p=23163\">19 December 2013 T.I. 2013-0503481E5</a> [transfer to settle debt]"
}