British Columbia Issues Bulletin on how PST Applies to Trusts

New British Columbia Bulletin PST 318, “Trusts”, was recently released to explain how tax applies to these types of entities, including family trusts.  This document includes useful definitions, as well as details on the application of PST when assets are transferred into and out of a trust.

Also discussed in this bulletin are:

• trustee liability, which can extend beyond the trust assets to include a trustee’s personal assets; and
• bare trusts, where the trustee is generally considered to be an agent of the beneficiaries and may, therefore, qualify for PST exemptions on purchases made on behalf of tax-exempt beneficiaries.