Canada: Trusts

Canadian income tax law does not prohibit Canadian residents from using offshore entities or structures. What it does prohibit—explicitly and deliberately—is the deferral of Canadian tax on passive or investment income through foreign intermediaries.

The Canadian federal government has introduced Bill C-31, which proposes significant changes to the qualified investment rules for registered plans.

The Ontario Superior Court of Justice examined whether a woman with diminished capacity required a court-appointed guardian to manage her substantial property holdings, or if less restrictive alternatives could protect her interests while preserving her autonomy. The case centered on balancing the state's duty to protect vulnerable persons against an individual's fundamental right to self-determination when making decisions about tens of millions of dollars in assets.