On the other hand, where a person acts in the context of the obligation to manage and/or transfer the trust and has an independent or discretionary power or responsibility, such a person is considered to be the agent of the trust and not as agent of the beneficiary. On the other hand, if, in the fiduciary instrument, independent powers and responsibilities are vested in the agent with respect to wealth management, the agent is considered to be engaged in commercial activity with respect to real estate-related supplies. This too would be determined on the basis of the confidence document. In this case, a delivery by the agent as agent with respect to the trust will be an activity of the trust, and the billing of the GST would be made by the agent for the trust. The decision, administration and management tasks related to real estate could include the power to enter into contracts by leasing, sale, acquisition, investment, etc. The trust should register in accordance with the law, unless it fulfills one of the exceptions described above in Section 240. To demonstrate the existence of an informal trust, the agent, administrator and beneficiary of the trust must be clearly identified on the application. The trust property is already identified in the application. For the purposes of the GST, when a transaction is made by the agent as an undisclosed agent, the economic beneficiary, as the principal obligatory, is responsible for collecting and transferring the tax on the delivery considered to the agent, while the agent`s liability is considered to be delivery to a third party.
As noted above, there may be circumstances in which the agent acts in more than one z.B. function as an agent for certain activities and agent for other activities. In such cases, the declaration must be made on the basis of the role of agent or trustee, if any. However, there are times when you have to appoint someone other than an agent as a trust company. If you want to put. B establishes a position of trust in another province, the agent, or the majority, if there are several agents – must be there. In other cases, you can appoint an external agent if you want pure independence or anticipate conflicts within the family. The characterization of the relationship over trust becomes of considerable importance in determining who should register between the economic beneficiary and the agent for the purposes of Part IX of the Excise Act (the “law”) and who is therefore responsible for gst for deliveries related to assets held in trust. The person who brings the original funds or assets to the trust and who creates the foundation by defining the terms of the trust, appoints the agents and designates the beneficiaries. Note that a Settlor loan is not enough to establish the position of trust. When the settlor brings or transfers cash assets into a trust, it is generally considered that it sold the assets at fair value at the time of the transaction.