CRA confirms that funeral prepayments received in trust under the applicable Quebec Act are not assets of a funeral company

CRA confirmed that amounts received under a prearranged funeral services contract which are required to be held in trust under s. 21 of the Quebec Act respecting arrangements for funeral services and sepultures (the “LASFS”) by the recipient funeral-services corporation, are not considered assets of that corporation for the purposes of the definitions of small business corporation and qualified small business corporation share.

Neal Armstrong. Summary of 20 November 2025 External T.I. 2022-0940101E5 F under s. 248(1) – SBC.