A and B each contribute a portfolio of securities to a joint spousal trust, and subsection 75(2) of the Income Tax Act (Canada) applies to each of A and B in respect of their contributions. The CRA takes the position that A must report the income from the portfolio he or she contributed; B must do likewise for his or her portfolio. It appears, then, that the trust must track whose portfolio earns what income.
Attribution does not apply to “second generation income”, however.
STEP Round Table 2022, question 11, summarized in Tax Topics no 2657 (February 7, 2023)
