Residence of a Trust: Fundy Settlement v Canada 2012 SCC 141

The residence of trusts was the issue considered by the Supreme Court of Canada in this case. Although a tax convention was involved, the primary issue was whether the trusts were resident in Canada under general common law principles. According to the Court, a trust was resident in Canada for purposes of the Canada-Barbados Tax Convention if the trust was liable to taxation in Canada by reason of residence. The important and far more illuminating aspect of the case was the articulation of the test for determining the residence of a trust.