In response to question 10, the CRA referred to Maurice Kissel Family Trust v R (unreported 2019-4092(IT)G). The trust in question prohibited the distribution of amounts to a “designated beneficiary”, but the trust purported to allocate and deduct gains it had realized to the minor beneficiaries even though they were designated beneficiaries. The Court upheld the CRA reassessment that had denied the deduction to the trust of the payments made. The Court held the trust, because of its terms, could not make the amounts in question payable as required by paragraph 104(6)(b) of the Income Tax Act (Canada). The CRA stated that, in its view, the Court’s decision was a confirmation of the views expressed by the CRA in technical interpretation 2005-0159081I7.
