Bifalgorithm post · Un actionnaire vend un immeuble à sa société · 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

Indemnity

Indemnity (Un actionnaire vend un immeuble à sa société · CRA finds that an indemnity given by a Canadian NRT beneficiary regarding a trust distribution receiv…

Ideas in this flowchart

  • Indemnity signed by a Canadian-resident beneficiary of a factually non-resident trust
  • The trust is factually non-resident and is referred to as the “NRT.”
  • The Canadian-resident beneficiary signs the indemnity before the NRT makes the distribution.
  • The indemnity requires repayment of the distribution to the trustee.
  • The repayment obligation is triggered by a successful challenge against the trustee by another beneficiary regarding the distribution.
  • The challenge must require the trustee to repay the distribution amount to the NRT.
  • CRA found that signing the indemnity would not cause s. 94(2)(d) to apply.
Bifalgorithm
Sign up
Feed/

Indemnity

No cover

Channel

Un actionnaire vend un immeuble à sa société

1 page

U
USR292600b83e2a
Ebook1w

"The Canadian-resident beneficiary of a factually non-resident trust (the “NRT”) will sign an indemnity, prior to the distribution by the NRT, which requires the repayment of the distribution to the trustee in the event that there should be a successful challenge against the trustee by any other beneficiary in respect of that distribution which requires the trustee to repay the amount of the distribution to the NRT. In finding that the signing of the indemnity would not cause s. 94(2)(d) to apply, CRA stated:"

Flowchart preview
👍
0
0 comments0 shares

Sign in to view and post comments.