14Limitation on tax payable by certain trustees

14 Limitation on tax payable by certain trustees

(1) Where: (a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate; (b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and (c) that net income or that part of the net income of the trust estate does not exceed $416; no tax is payable under subsection 12(6) in respect of that net income or that part of the net income, as the case may be. (2) Where: (a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate; (b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and (c) that net income or that part of the net income of the trust estate exceeds $416 but does not exceed the net income phase‑out limit; the amount of tax payable by the trustee under subsection 12(6) in respect of that net income or that part of the net income shall not exceed 50% of the amount by which that net income or that part of the net income, as the case may be, exceeds $416, less any rebate or credit to which the trustee is entitled. (3) The net income phase‑out limit is the following amount rounded down to the nearest dollar: Start formula start fraction $416 time 50% over 50% minus Lowest rate in the table in Part I of Schedule 7 end fraction end formula