A trust cannot make an s. 104(19) designation until its year end (December 31) since it is only then that it can be determined that it has been resident in Canada throughout the year. The "Trust" designates a taxable dividend it received on June 30, 2013 from Opco to its beneficiary, Holdco, whose year-end is June 30. 2013. Should the dividend be included in Holdco’s June 30, 2013 or 2014 fiscal year under s. 186(1)(b), taking into account the dividend refund received by Opco for its June 30, 2013 fiscal year?
[T]he amount of the taxable dividend received from Opco by the Trust and distributed and designated by it to Holdco would, pursuant to subsection 104(19), be deemed to have been received by Holdco in its taxation year ending on June 30, 2014.
Thus, we are of the view that Holdco should include the amount of the taxable dividend in Schedule 3 on its income tax return for its taxation year ended June 30, 2014 and pay the applicable Part IV tax, where required.