The appellants sought return of withholding amounts remitted on capital gains from share dispositions, arguing the trusts were resident in Barbados under the Canada-Barbados treaty.
The respondent maintained the trusts were resident in Canada because central management and control was exercised in Canada by the principal beneficiaries.
The Court held trust residence is determined by where the trust's real business is carried on, applying the central management and control approach used for corporations.
On the factual findings, the trustee's role was largely administrative and effective control occurred in Canada.
The appeals were dismissed with costs.
