Reference to trust or estate	104. (1) In this Act, a reference to a trust or estate (in this subdivision referred to as a ``trust'') shall, unless the context otherwise requires , be read to include a reference to the trustee, executor, administrator, liquidator of a succession , heir or other legal representative having ownership or control of the trust property, but, except for the purposes of this subsection, subsection (1.1), subparagraph (b)(v) of the definition ``disposition'' in subsection 248(1) and paragraph (k) of that definition, a trust is deemed not to include an arrangement under which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust's property unless the trust is described in any of paragraphs (a) to (e.1) of the definition ``trust'' in subsection 108(1).
Restricted meaning of ``beneficiary''	(1.1) Notwithstanding subsection 248(25.1) and for the purposes of subsection (1), paragraph (4)(a.4), subparagraph 73(1.02)(b)(ii) and paragraph 107.4(1)(e), a person or partnership is deemed not to be a beneficiary under a trust at a particular time where the person or partnership is beneficially interested in the trust at the particular time solely because of
	(a) a right that may arise as a consequence of the terms of the will or other testamentary instrument of an individual who, at the particular time, is a beneficiary under the trust;
	(b) a right that may arise as a consequence of the law governing the intestacy of an individual who, at that time, is a beneficiary under the trust;
	(c) a right as a shareholder under the terms of the shares of the capital stock of a corporation that, at the particular time, is a beneficiary under the trust;
	(d) a right as a member of a partnership under the terms of the partnership agreement, where, at the particular time, the partnership is a beneficiary under the trust; or
	(e) any combination of rights described in paragraphs (a) to (d).
	(2) The portion of subsection 104(4) of the Act before paragraph (a) is replaced by the following:
Deemed disposition by trust	(4) Every trust is , at the end of each of the following days, deemed to have disposed of each property of the trust (other than exempt property) that was capital property (other than excluded property or depreciable property) or land included in the inventory of a business of the trust for proceeds equal to its fair market value (determined with reference to subsection 70(5.3)) at the end of that day and to have reacquired the property immediately after that day for an amount equal to that fair market value, and for the purposes of this Act those days are
	(3) Paragraph 104(4)(a) of the Act is amended by striking out the word ``or'' at the end of subparagraph (i.1), by adding the word ``or'' at the end of subparagraph (ii) and by replacing the portion after subparagraph (ii) with the following:
	(ii.1) is a trust (other than a trust the terms of which are described in clause (iv)(A) that elects in its return of income under this Part for its first taxation year that this subparagraph not apply) that was created after 1999 by a taxpayer during the taxpayer's lifetime and that, at any time after 1999, was a trust
	under which
	(iii) the taxpayer's spouse or common-law partner was entitled to receive all of the income of the trust that arose before the spouse's or common-law partner's death and no person except the spouse or common-law partner could, before the spouse's or common-law partner's death, receive or otherwise obtain the use of any of the income or capital of the trust, or
	(iv) in the case of a trust described in subparagraph (ii.1) created by a taxpayer who had attained 65 years of age at the time the trust was created,
	(A) the taxpayer was entitled to receive all of the income of the trust that arose before the taxpayer's death and no person except the taxpayer could, before the taxpayer's death, receive or otherwise obtain the use of any of the income or capital of the trust,
	(B) the taxpayer or the taxpayer's spouse was, in combination with the spouse or the taxpayer, as the case may be, entitled to receive all of the income of the trust that arose before the later of the death of the taxpayer and the death of the spouse and no other person could, before the later of those deaths, receive or otherwise obtain the use of any of the income or capital of the trust, or
	(C) the taxpayer or the taxpayer's common-law partner was, in combination with the common-law partner or the taxpayer, as the case may be, entitled to receive all of the income of the trust that arose before the later of the death of the taxpayer and the death of the common-law partner and no other person could, before the later of those deaths, receive or otherwise obtain the use of any of the income or capital of the trust ,
	the day on which the death or the later death, as the case may be, occurs ;
	(4) Subsection 104(4) of the Act is amended by adding the following after paragraph (a.1):
	(a.2) where the trust makes a distribution to a beneficiary in respect of the beneficiary's capital interest in the trust, it is reasonable to conclude that the distribution was financed by a liability of the trust and one of the purposes of incurring the liability was to avoid taxes otherwise payable under this Part as a consequence of the death of any individual, the day on which the distribution is made (determined as if a day ends for the trust immediately after the time at which each distribution is made by the trust to a beneficiary in respect of the beneficiary's capital interest in the trust);
	(a.3) where property (other than property described in any of subparagraphs 128.1(4)(b)(i) to (iii)) has been transferred by a taxpayer after December 17, 1999 to the trust in circumstances to which subsection 73(1) applied, it is reasonable to conclude that the property was so transferred in anticipation that the taxpayer would subsequently cease to reside in Canada and the taxpayer subsequently ceases to reside in Canada, the first day after that transfer during which the taxpayer ceases to reside in Canada (determined as if a day ends for the trust immediately after each time at which the taxpayer ceases to be resident in Canada);
	(a.4) where the trust is a trust to which property was transferred by a taxpayer who is an individual (other than a trust) in circumstances in which section 73 or subsection 107.4(3) applied, the transfer did not result in a change in beneficial ownership of that property and no person (other than the taxpayer) or partnership has any absolute or contingent right as a beneficiary under the trust (determined with reference to subsection (1.1)), the day on which the death of the taxpayer occurs;
	(5) Subparagraph 104(4)(b)(iii) of the Act is replaced by the following:
	(iii) where applicable, the time determined under paragraph (a), (a.1) or (a.4) as those paragraphs applied from time to time after 1971; and
	(6) Paragraph 104(4)(c) of the Act is replaced by the following:
	(c) the day that is 21 years after any day (other than a day determined under any of paragraphs (a) to (a.4)) that is, because of this subsection, a day on which the trust is deemed to have disposed of each such property.
	(7) The portion of subsection 104(5) of the Act before paragraph (a) is replaced by the following:
Depreciable property	(5) Every trust is , at the end of each day determined under subsection (4) in respect of the trust, deemed to have disposed of each property of the trust (other than exempt property) that was a depreciable property of a prescribed class of the trust for proceeds equal to its fair market value at the end of that day and to have reacquired the property immediately after that day at a capital cost (in this subsection referred to as the ``deemed capital cost'') equal to that fair market value, except that
	(8) The portion of subsection 104(5.2) of the Act before paragraph (b) is replaced by the following:
Resource property	(5.2) Where at the end of a day determined under subsection (4) in respect of a trust, the trust owns a Canadian resource property (other than an exempt property) or a foreign resource property (other than an exempt property) ,
	(a) for the purposes of determining the amounts under subsection 59(1), paragraphs 59(3.2)(c) and (c.1) , subsections 66(4) and 66.2(1), the definition ``cumulative Canadian development expense'' in subsection 66.2(5), the definition ``cumulative foreign resource expense'' in subsection 66.21(1), subsection 66.4(1) and the definition ``cumulative Canadian oil and gas property expense'' in subsection 66.4(5), the trust is deemed
	(i) to have a taxation year (in this subsection referred to as the ``old taxation year'') that ended at the end of that day and a new taxation year that begins immediately after that day , and
	(ii) to have disposed, immediately before the end of the old taxation year, of each of those properties for proceeds that became receivable at that time equal to its fair market value at that time and to have reacquired, at the beginning of the new taxation year, each such property for an amount equal to that fair market value; and
	(9) Paragraph 104(5.2)(b) of the Act is amended by striking out the word ``and'' at the end of subparagraph (i) and by adding the following after subparagraph (i):
	(i.1) include in computing its income for the particular taxation year the amount, if any, determined under paragraph 59(3.2)(c.1) in respect of the old taxation year and the amount so included is, for the purpose of determining the value of B in the definition ``cumulative foreign resource expense'' in subsection 66.21(1), deemed to have been included in computing its income for a preceding taxation year, and
	(10) Subsection 104(5.3) of the Act is amended by adding the word ``and'' at the end of paragraph (b.1) and by replacing the portion of paragraph (c) before subparagraph (i) with the following:
	(c) subsection 107.4(3) does not apply to a disposition by the trust during the period
	(11) Subsection 104(5.3) of the Act is amended by striking out the word ``and'' at the end of paragraph (c) and by repealing paragraph (d).
	(12) The portion of subsection 104(5.8) of the Act before paragraph (a) is replaced by the following:
Trust transfers	(5.8) Where capital property (other than excluded property), land included in inventory, Canadian resource property or foreign resource property is transferred at a particular time by a trust (in this subsection referred to as the ``transferor trust'') to another trust (in this subsection referred to as the ``transferee trust'') in circumstances in which subsection 107(2) or 107.4(3) or paragraph (f) of the definition ``disposition'' in subsection 248(1) applies ,
	(13) The portion of subparagraph 104(5.8)(a)(i) of the Act before clause (A) is replaced by the following:
	(i) subject to paragraphs (b) to (b.3) , the first day (in this subsection referred to as the ``disposition day'') that ends at or after the particular time that would, if this section were read without reference to paragraphs (4)(a.2) and (a.3) , be determined in respect of the transferee trust is deemed to be the earliest of
	(14) Clause 104(5.8)(a)(i)(C) of the Act is replaced by the following:
	(C) the first day that ends at or after the particular time, where
	(I) the transferor trust is a joint spousal or common-law partner trust, a post-1971 spousal or common-law partner trust or a trust described in the definition ``pre-1972 spousal trust'' in subsection 108(1), and
	(II) the spouse or common-law partner referred to in paragraph (4)(a) or in the definition ``pre-1972 spousal trust'' in subsection 108(1) is alive at the particular time,
	(C.1) the first day that ends at or after the particular time, where
	(I) the transferor trust is an alter ego trust, a trust to which paragraph (4)(a.4) applies or a joint spousal or common-law partner trust, and
	(II) the taxpayer referred to in paragraph (4)(a) or (a.4), as the case may be, is alive at the particular time, and
	(15) Paragraph 104(5.8)(b) of the Act is replaced by the following:
	(b) paragraph (a) does not apply in respect of the transfer where
	(i) the transferor trust is a post-1971 spousal or common-law partner trust or a trust described in the definition ``pre-1972 spousal trust'' in subsection 108(1),
	(ii) the spouse or common-law partner referred to in paragraph (4)(a) or in the definition ``pre-1972 spousal trust'' in subsection 108(1) is alive at the particular time, and
	(iii) the transferee trust is a post-1971 spousal or common-law partner trust or a trust described in the definition ``pre-1972 spousal trust'' in subsection 108(1);
	(b.1) paragraph (a) does not apply in respect of the transfer where
	(i) the transferor trust is an alter ego trust,
	(ii) the taxpayer referred to in paragraph (4)(a) is alive at the particular time, and
	(iii) the transferee trust is an alter ego trust;
	(b.2) paragraph (a) does not apply in respect of the transfer where
	(i) the transferor trust is a joint spousal or common-law partner trust,
	(ii) either the taxpayer referred to in paragraph (4)(a), or the spouse or common-law partner referred to in that paragraph, is alive at the particular time, and
	(iii) the transferee trust is a joint spousal or common-law partner trust;
	(b.3) paragraph (a) does not apply in respect of the transfer where
	(i) the transferor trust is a trust to which paragraph (4)(a.4) applies,
	(ii) the taxpayer referred to in paragraph (4)(a.4) is alive at the particular time, and
	(iii) the transferee trust is a trust to which paragraph (4)(a.4) applies; and
	(16) Subsection 104(6) of the Act is amended by striking out the word ``and'' at the end of paragraph (a.2) and by adding the following after paragraph (a.2):
	(a.3) in the case of an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, such part of its income for the year as became payable in the year to a beneficiary; and
	(17) Clauses 104(6)(b)(ii)(A) and (B) of the Act are replaced by the following:
	(A) is a post-1971 spousal or common-law partner trust that was created after December 20, 1991, or
	(B) would be a post-1971 spousal or common-law partner trust if the reference in paragraph (4)(a) to ``at the time it was created'' were read as ``on December 20, 1991'',
	(18) Paragraph 104(6)(b) of the Act is amended by striking out the word ``and'' at the end of subparagraph (ii) and by replacing subparagraph (iii) with the following:
	(ii.1) where the trust is an alter ego trust or a joint spousal or common-law partner trust and the death or later death, as the case may be, referred to in subparagraph (4)(a)(iv) has not occurred before the end of the year, such part of the amount that, but for this subsection and subsections (12), 12(10.2) and 107(4), would be its income as became payable in the year to a beneficiary (other than a taxpayer , spouse or common-law partner referred to in clause (4)(a)(iv)(A), (B) or (C)) or was included under subsection 105(2) in computing the income of a beneficiary (other than such a taxpayer, spouse or common-law partner), and
	(iii) where the trust is an alter ego trust, a joint spousal or common-law partner trust, a trust to which paragraph (4)(a.4) applies or a post-1971 spousal or common-law partner trust and the death or the later death, as the case may be, referred to in paragraph (4)(a) or (a.4) in respect of the trust occurred on a day in the year, the amount, if any, by which
	(A) the maximum amount that would be deductible under this subsection in computing the trust's income for the year if this subsection were read without reference to this subparagraph
	exceeds the total of
	(B) the amount that, but for this subsection and subsections (12), 12(10.2) and 107(4), would be its income that became payable in the year to the taxpayer, spouse or common-law partner referred to in subparagraph (4)(a)(iii), clause (4)(a)(iv)(A), (B) or (C) or paragraph (4)(a.4), as the case may be, and
	(C) the amount that would be the trust's income for the year if that income were computed without reference to this subsection and subsection (12) and as if the year began immediately after the end of the day.
	(19) Subsection 104(13) of the Act is replaced by the following:
Income of beneficiary	(13) There shall be included in computing the income for a particular taxation year of a beneficiary under a trust such of the following amounts as are applicable:
	(a) in the case of a trust (other than a trust referred to in paragraph (a) of the definition ``trust'' in subsection 108(1)), such part of the amount that, but for subsections (6) and (12), would be the trust's income for the trust's taxation year that ended in the particular year as became payable in the trust's year to the beneficiary; and
	(b) in the case of a trust governed by an employee benefit plan to which the beneficiary has contributed as an employer, such part of the amount that, but for subsections (6) and (12), would be the trust's income for the trust's taxation year that ended in the particular year as was paid in the trust's year to the beneficiary.