Canada's draft legislative proposals would modify income tax treatment of certain trusts and their beneficiaries

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04 February 2016

Canada's draft legislative proposals would modify income tax treatment of certain trusts and their beneficiaries

Canada's Department of Finance on January 15 released for public comment technical proposals and accompanying explanatory notes (the proposals) on the life interest trust and estate donation rules. The proposals apply to 2016 and subsequent tax years. The proposals are intended to address various inequities that had been communicated to the Department of Finance in a November 16, 2015 letter authored by the co-chairs of the Joint Committee on Taxation, the president for the Conference for Advanced Life Underwriting (CALU) and the chair of the Technical Committee of STEP Canada.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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Document ID: 2016-0244

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