In Fiducie Famille Champoux c Agence du revenu du Québec, 2026 QCCQ 2430, Revenue Quebec had alleged a sham where a trust allocated to a beneficiary $800,000 of a $950,000 gain realized on the sale of shares. The beneficiary’s husband was the directing mind of the trust and the issuer. The wife, the husband and their children were beneficiaries of the trust. It appears Revenue Quebec made the allegation at least in part because of the use to which the funds allocated were put (they were deposited to a joint bank account, and the husband used them to pay family debts, among other things). The Court, after distinguishing Laplante v R, 2017 TCC 118, aff’d 2018 FCA 193 (which I discussed here) rejected the sham allegation and allowed the taxpayer’s appeal.
Marc-André Morin “Capital Gain Allocation by a Discretionary Family Trust: Sham Rejected” Canadian Tax Focus 16:3 (August 2026)
