Concept
Indebtedness
Colubriale v. Canada, 2005 FCA 329 / CRA finds that an indemnity given by a Canadian NRT beneficiary regarding a trust distribution received from the trustee did not cause s. 94(2)(d) to apply
"[I]n order for paragraph 94(2)(d) to be applicable, inter alia, the undertaking must be given to ensure the repayment of a loan or indebtedness incurred by the other person at the relevant time. In the situation described, the other person would be the trustee of the NRT, which means that in order for paragraph 94(2)(d) to apply, the indemnity must relate to the repayment of a loan or other indebtedness incurred by the trustee. It would appear that until there is a successful challenge against the trustee by another beneficiary in respect of the distribution by the NRT to the Canadian Beneficiary, which requires the trustee to repay the amount of the distribution to the NRT, there is no loan or other indebtedness incurred for purposes of paragraph 94(2)(d)."
Related Ideas
- Indemnity ApplicationDeyab v. Canada, 2020 FCA 222 · CRA finds that an indemnity given by a Canadian NRT beneficiary regarding a trust distribution received from the trustee did not cause s. 94(2)(d) to apply
- IndemnityChopp v. R., 98 DTC 6014, [1998] 1 CTC 407 (FCA) · CRA finds that an indemnity given by a Canadian NRT beneficiary regarding a trust distribution received from the trustee did not cause s. 94(2)(d) to apply