Income Tax Act

Marginal note:Application of s. 127.5

127.55 Section 127.5 does not apply in respect of

• (a) a return of income of an individual filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(e) or subsection 150(4);

• (b) [Repealed, 2001, c. 17, s. 121(1)]

• (c) an individual for the taxation year in which the individual dies;

• (d) an individual for the 1986 taxation year if the individual dies in 1987;

• (e) a trust described in paragraph 104(4)(a) or (a.1) for its taxation year that includes the day determined in respect of the trust under that paragraph; and

• (f) a taxation year of a trust throughout which the trust is

  • (i) a trust referred to in paragraph 150(1.2)(f), (g), (i), (j), (l) or (n),

  • (ii) an investment fund (as defined in subsection 251.2(1)) unless the trust qualifies as an investment fund because of or in connection with a transaction or event or series of transactions or events one of the main purposes of which is to avoid tax under this Division,

  • (iii) a trust

    • (A) all of the beneficiaries of which are any combination of

      • (I) persons exempt from tax under this Division, and

      • (II) trusts described in this subparagraph,

    • (B) under which no person (other than a person described in subclause (A)(I) or (II)) can be added as a beneficiary,

    • (C) in which all interests are fixed interests (as defined in subsection 94(1)), and

    • (D) that is irrevocable,

  • (iv) a trust that is exempt from tax under this Part,

  • (v) a trust described in subsection 143(1),

  • (vi) a unit trust if the total fair market value of the units of the trust that are listed on a designated stock exchange represents all or substantially all of the total fair market value of all the units of the trust, or

  • (vii) an employee ownership trust.