Tax wiki
s. 127.53
PART I — Income Tax · DIVISION E.1 — Minimum Tax
Not yet annotated · Text current to 2026-06-21 · section last amended 2014-12-16
Current text
[Repealed, 2014, c. 39, s. 45]
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2004-08-31 to 2014-12-15:
Show the text in force 2004-08-31 to 2014-12-15
Basic exemption
127.53 (1) An individual’s basic exemption for a taxation year is
(a) $40,000, in the case of an individual other than a trust;
(b) $40,000, in the case of a testamentary trust or an inter vivos trust described in subsection 122(2); and
(c) in any other case, nil.
Multiple trusts
(2) Notwithstanding paragraph 127.53(1)(b), where more than one trust described in that paragraph arose as a consequence of contributions to the trusts by an individual and those trusts have filed with the Minister in prescribed form an agreement whereby, for the purpose of this Division, they allocate an amount to one or more of them for a taxation year and the total of the amounts so allocated does not exceed $40,000, the basic exemption for the year of each of the trusts is the amount so allocated to it.
Failure to file agreement
(3) Notwithstanding paragraph 127.53(1)(b), where more than one trust described in that paragraph arose as a consequence of contributions to the trusts by an individual and no agreement as contemplated by subsection 127.53(2) has been filed with the Minister before the expiration of 30 days after notice in writing has been forwarded by the Minister to any of the trusts that such an agreement is required for the purpose of an assessment of tax under this Part, the Minister may, for the purpose of this Division, allocate an amount to one or more of the trusts for a taxation year, the total of all of which amounts does not exceed $40,000, and the basic exemption for the year of each of the trusts is the amount so allocated to it.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1986, c. 55, s. 50
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 127.53 links to the one before it.
Enacting and amending legislation
- 1986, c. 55, s. 50; 2014, c. 39, s. 45]
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
No other section of the Act refers to this section, and it refers to no other section.
References are generated from the statutory text and list other sections of the Act only.
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 127.53.