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Appeal from section 160 assessment dismissed; trust emigration triggered deemed year end and no consideration given for distributions.
The appellant appealed an assessment under section 160 of the Income Tax Act holding him jointly and severally liable for the tax debt of a trust.
The trust had emigrated to Barbados, triggering a deemed year end and disposition of property under subsection 128.1(4).
The trust subsequently distributed capital to the appellant.
The Tax Court of Canada held that subsection 128.1(4) applied to create a deemed year end, taking precedence over subsection 94(1).
Furthermore, the Court found that the appellant gave no consideration for the capital distributions, rejecting the argument that subsection 107(2) deemed consideration to have been paid.
The appeal was dismissed.
