Bifalgorithm post · Une erreur comptable peut-elle entraîner un impôt supplémentaire? · CRA expands its FAQ webpage on bare trust reporting

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  • CRA updated its FAQ entitled “Enhanced Reporting Rules for Trusts and Bare Trusts.”
  • The updates add examples concerning exceptions to deemed trust status under s. 150(1.31).
  • S. 150(1.31)(a) excepts property where all legal owners hold it for their own use and benefit and for that of the other legal owners.
  • CRA’s example involves family members holding a joint bank account for the use and benefit of each of them.
  • CRA further illustrates this with two spouses who jointly hold an investment account containing GICs and TSX-listed stocks, while also being the beneficial owners.
  • S. 150(1.31)(b) excepts circumstances where a parent is on title to allow a child to obtain a mortgage.
  • CRA’s example involves a couple acquiring legal and beneficial ownership of a home while the mother or mother-in-law is also on title.
  • S. 150(1.31)(c) excepts circumstances where spouses jointly occupy a family home but only one spouse is on title.
  • CRA provides a detailed example involving spouses who jointly occupy a family home with only one spouse on title.
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Une erreur comptable peut-elle entraîner un impôt supplémentaire?

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"![Email this Content](https://taxinterpretations.com/sites/all/modules/forward/forward.gif)\n\nCRA has updated its FAQ entitled \"Enhanced Reporting Rules for Trusts and Bare Trusts.\"\n\nThe updates include examples regarding the exceptions to deemed trust status set out in s. 150(1.31). In this regard, CRA notes that:\n\nS. 150(1.31)(a) “provides an exception where all legal owners hold property both for their own use and benefit and for that of the other legal owners. For example, a joint bank account held by family members for the use and benefit of each of them” – and CRA goes on to provide a more detailed example of two spouses who hold a joint investment account, invested in GICs and TSX-listed stocks, for which they are both also the beneficial owners.\n\nS. 150(1.31)(b) “provides an exception for circumstances such as where a parent is on title [to a principal residence] to allow a child to obtain a mortgage” – and CRA goes on to provide a more detailed example of a couple acquiring the legal and beneficial ownership of a home but their mother/mother-in-law also being on title.\n\nS. 150(1.31)(c) “provides an exception for circumstances where spouses jointly occupy a family home, but only one spouse is on title” – and CRA goes on to provide a more detailed example to this effect."

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