1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).
Income Tax Law, 2/e$75.00 – $120.00
A foreign trust is an entity organized outside Canada which is set up to hold and administer funds or property on behalf of beneficiaries. For example, a Canadian taxpayer may transfer funds or property to a foreign trust for the benefit of his children living abroad. However, such arrangements can also be set up for the purpose of reducing income from property for Canadian tax purposes. The Income Tax Act contains provisions designed to prevent the avoidance of tax in such cases.