Topic: in applying central management and control test, Tax Court judge made no error in concluding that management and control of trusts resided in Canada with beneficiaries

Garron v Canada WTLR(w) 2011-02

Wills & Trusts Law Reports | Web Only

Appeals by the trustee from a Tax Court decision dismissing the appeal from assessment. The assessed tax arose from capital gains realized by two trusts on the disposition of the shares of two Canadian corporations at a time when, according to the Crown, the trusts were resident in Canada. The beneficiaries of both trusts were residents in Canada. The trustee was incorporated in Barbados and was licensed as a trustee in Barbados. The trustee argued that because the trusts were residents of Barbados for purposes of the Barbados Tax Treaty, their capital gains were exempt from income tax i...