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Bare Trust Agreement Cra

By on April 8, 2021 in Uncategorized

Nevertheless, the Department believes that, in some situations, relationships related to trust and the agency can co-exist. As a result, some of the agents` functions may be performed as agents, others as agents. In certain circumstances, therefore, the agent or agent may also be a filer. This point is explained in more detail below. The sole agent should register as an agent or agent if the agent`s income from his business activities (and those of related persons) and not the activities of the trust exceeds the threshold for small suppliers. For example, the agent may collect a fee or fee for the operation of the fiduciary property as an agent for the beneficiaries. Registration/disinscribing generally has no influence on the use of the property held in a simple trust. The sole duty of a single agent would be to make the trust final, upon request and as instructed by the beneficiary, as provided by the trust instrument. The sole agent has no independent authority, discretion or responsibility for the ownership of the trust. In such cases, the economic beneficiary reserves the right to control and direct the agent on all matters related to the trust.

While the functions of the agent may generally indicate a dominant agency relationship in a simple position of trust, it is necessary to examine the type of obligations contemplated by the trust in order to determine whether the Agency`s principles are applicable and not the principles of trust. Recent statements by the BC government and changes to disclosure obligations in the transfer of property ownership have raised questions about whether a certain type of trust, the bare trust, will continue to be a useful tool for BC real estate transactions. Over the years, there has been a lot of discussion about the real role of an agent, perhaps more in terms of simple trust. The community of law is not yet unanimous about the nature of the relationship between the agent and the economic beneficiary. However, a simple trust is a trust in which the legal owner is a property with the sole duty to transfer the property to the beneficiary upon request. In other words, the difference between a simple trust and an ordinary trust lies in the power or discretion of the agent: an increased audit activity was given to the Canada Revenue Agency (CRA) because it refers to trusts and GST/HST.

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