• Closely held restriction

    There are restrictions on the extent to which a trust can be 'closely held'. The closely held restrictions differ depending on whether the MIT is:

    Specified widely held entities and trusts in a chain of trusts are treated as not having an interest in the trust for the purpose of the closely held rules.

    Registered MIS that is a retail trust

    To meet the closely held restriction, a registered MIS that is a retail trust must not have:

    • 20 or fewer persons holding 75% or more of the participation interests, or
    • one foreign resident individual holding 10% or more of the participation interests.

    MIS that is a wholesale trust

    To meet the closely held restriction, a registered or unregistered MIS that is a wholesale trust must not have:

    • 10 or fewer persons holding 75% or more of the participation interests, or
    • one foreign resident individual holding 10% or more of the participation interests.
      Last modified: 06 Oct 2016QC 47436