Who are Foreign Entities:
• Foreign nationals – individuals that are not Canadian citizens or permanent residents.
• Foreign corporations – corporations that are:
a) Not incorporated in Canada, or
b) Incorporated in Canada, they must not have any shares listed on the Canadian stock exchange, and are subject to de facto control (any form of direct or indirect control), as determined for income tax purposes, by one or more:
(a) Foreign nationals
(b) Corporations not incorporated in Canada, or
(c) Corporations that would, if each share owned by foreign nationals or foreign-incorporated corporation that were owned by a particular person that is subject to de facto control by a particular person.
As a taxable trustee, you are a trustee of a trust that is not a real estate investment trust, also known as REIT, a mutual fund trust or a specified investment flow-through trust, also known as a SIFT, as it is defined for income tax purposes with at least one trustee that is a foreign entity, or no foreign entity trustees if a beneficiary of the trust is a foreign entity.
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