The CRA has taken the position that a trust cannot deduct an amount made payable to a beneficiary under ITA subsection 104(6) unless, among other things, the trust was legally entitled to make the payment under the terms of its governing agreement. See technical interpretation 2005-0159081I7. Neal Armstrong reports (paywalled) that the CRA believes its position has been vindicated by an unreported Tax Court decision that has not been appealed. See 2024 STEP Roundtable, Q10.
