The Appellant was assessed under subsection 160(1) of the Income Tax Act for funds received from her mother's RRSP upon her mother's death.
The Appellant argued that subsection 160(1) violated section 7 of the Charter and that she held the funds in trust.
The Tax Court of Canada found no Charter violation, as the assessment involved only economic interests.
The Court held that the Appellant received the RRSP proceeds in trust, not personally, and thus was not liable under subsection 160(1) for the initial transfer.
However, the Court found the Appellant liable for $23,599 in respect of distributions made from the trust to herself for which she provided no consideration.
The appeal was allowed in part.
