,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,numb]3 ,,it-#bia;,r#c
,date3 ,janu>y #ab1 #bjjd
,subject3 ,9come tax act--,transf] (
  ,prop]ty 6a ,corpor,n "u ,subsec;n
  #he7#a7
,ref];e3 ,subsec;n #he7#a7 7al sec;ns
  #bb1 #ed1 #he.a & #bea.a1 subsec;ns
  #f7#b71 #h7#g71 #ac7#ba.b71 #ad7#e71
  #ad7#ab71 #ae7#a71 #bd7#a71 #bh7#a71
  #bh7#a.b71 #dj7#c.d71 #ff7#e71
  #ff7#ae71 #fi7#aa71 #hd7#a71 #hd7#c71
  #hd7#e71 #he7#a.a71 7#a.aa71 7#a.b71
  7#a.c71 7#b.a71 7#e7 & 7#e.a71
  #hi7#a71 #ach7#ab71 #adb.b7#a71
  #bde7#b71 #bdh7#a71 & #bef7#e.a7 &
  p>agraphs #h7#a77r71 #ac7#g77e71
  #ad7#a77b71 #bj7#a77a71 7b71 7l7 &
  7p71 #ec7#a77c7 & 7f7 & subp>agraph
  #dj7#b77g77;i7 (! ,9come ,tax ,act 7!
                                      #a
             ,,it-#bia;,r#c          a#a
  8,act07 & subsec;n #gcjg7#a7 (! ,9come
  ,tax ,regul,ns 7! 8,regul,ns077

  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns reg>d+
c]ta9 provi.ns 3ta9$ 9 9come tax law4
,due 6_! te*nical nature1 ,,it's >e us$
prim>ily 0\r /aff1 tax speciali/s1 & o!r
9dividuals :o h an 9t]e/ 9 tax matt]s4
,= ^? r1d]s :o pref] a less te*nical
explan,n (! law1 we (f] o!r public,ns1
s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4                   #b
             ,,it-#bia;,r#c          b#a
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publi%$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4 ,if1
on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!
curr5t & subsequ5t tax,n ye>s or =
transac;ns 5t]$ 96af ! date on : ! *ange
is publi%$4
  ,mo/ ( \r public,ns >e availa# on \r
,web site at3 _+www.ccra.gc.ca_:
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e

or 0email at ! foll[+ a4ress3
_+bulletins@ccra.gc.ca_:              #c
             ,,it-#bia;,r#c          c#a
  ,? v].n is only availa# electronic,y4

                 ,3t5ts
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,def9i;ns
  ,g5]al ,-;ts 7p>agraph #a7
  ,transf]or 7p>agraph #b7
  ,transf]ee 7p>agraph #c7
  ,eligi# ,prop]ty 7p>agraphs #d-i7
  ,limits = ,agre$ ,am.t 7p>agraphs
    #aj-ad7
  ,transf]s ( ,deprecia# & ,eligi#
    ,capital ,prop]ty 7p>agraphs #ae-af7
  ,excess ,liabilities 7p>agraph #ag7
  ,b5efits ,3f]r$ on a ,relat$ ,p]son
    7p>agraph #ah7
  ,pass5g] ,vehicles 7p>agraph #ai7
  ,%>es (! ,transf]or 7p>agraph #bj7
  ,co/ 6,transf]or ( ,3sid],n ,rcvd f !
    ,corpor,n 7p>agraph #ba7
                                      #d
             ,,it-#bia;,r#c          d#a
  ,loss ,f ,4posi;n ( ,prop]ty
    7p>agraphs #bb-be7
  ,rollov]s ( ,capital ,prop]ty
    7p>agraph #bf7
  ,taxa# ,canadian ,prop]ty
    7p>agraph #bg7
  ,3tribu;n ( ,capital 7p>agraph #bh7
  ,reduc;n ( ,pd-up ,capital
    7p>agraph #bi7
  ,deem$ ,capital ,co/ ,all[.e
    7p>agraphs #cj-ca7
  ,subsequ5t ,4posi;ns ( ,eligi#
    ,capital ,prop]ty 7p>agraph #cb7
  ,anti-,avoid.e ,rules
    7p>agraphs #cc-cd7
  ,adm9i/rative ,matt]s
    7p>agraphs #ce-cg7
,explan,n ( ,*anges

               ,applic,n
    
  ,? bullet9 c.els & replaces
,,it-#bia;,r#b dat$ ,septemb] #af1
#aiid4 ,! e6ective date (a "picul>    #e
             ,,it-#bia;,r#c          e#a
legislative provi.n 4cuss$ 9 ! bullet9
may 2 9dicat$ 9 ! ,explan,n ( ,*anges
sec;n 7or1 9 "s cases1 9 ! ,4cus.n &
,9t]pret,n sec;n7 (! bullet94 ,h["e1 ":
! bullet9 is sil5t ) respect 6! e6ective
date (a "picul> provi.n1 s* date c 2
--------------------------------------#b
obta9$ f ! legisl,n xf4 ,un.s o!rwise
/at$1 all /atutory ref];es "?\t !
bullet9 >e 6! ,act4

                ,summ>y
    
  ,? bullet9 4cusses ! rollov] provi.ns
(! ,act ":by a taxpay] may elect
6transf] 8eligi# prop]ty0 6a taxa#
,canadian corpor,n 9 ex*ange = 3sid],n t
9cludes at l1/ "o %>e (! corpor,n4
8,eligi# prop]ty0 9cludes mo/ capital
prop]ty1 ,canadian or =eign res\rce
prop]ty1 eligi# capital prop]ty &
9v5tory1 o!r ?an 9v5tory t is r1l
prop]ty4 ,": ! taxpay] &! corpor,n agree
^u an am.t t does n exce$ ! fair      #f
             ,,it-#bia;,r#c          a#b
m>ket value (! prop]ty 4pos$ (& is n
less ?an ! fair m>ket value ( any non-
%>e 3sid],n t is rcvd1 ! am.t agre$ ^u
2comes1 subject 6c]ta9 specific
limit,ns1 ! taxpay]'s proce$s ( 4posi;n
&! corpor,n's co/ (! prop]ty4 ,0*oos+ an
appropriate am.t )9 ^? limits ! prop]ty
c 2 transf]r$ on a tax-def]r$ basis1 t
is1 ! corpor,n assumes ! taxpay]'s
pot5tial 9come tax liabilities =!
prop]ty4

          ,4cus.n & ,9t]pret,n
    
               ,def9i;ns
    
  ,=! purposes ( ? bullet93
  ..,all or sub/anti,y .all--:5 ! level
( #ij@3p ( :at"e is 2+ m1sur$ is r1*$1 !
8all or sub/anti,y all0 require;t is
3sid]$ 6h be5 met4
  .,non-%>e 3sid],n m1ns all ! 3sid],n
rcvd 0! v5dor o!r ?an %>es (! transf]ee
corpor,n or a "r 6rcv s* %>es4        #g
             ,,it-#bia;,r#c          b#b
  .,%>e m1ns a %>e or a frac;n (a %>e (!
capital /ock (a corpor,n4

       ,g5]al ,-;ts 7p>agraph #a7
    
#a4 ,! rules 9 subsec;n #he7#a7 5a# a
  taxpay] 7! transf]or7 64pose ( 8eligi#
  prop]ty0 7see p>agraph #d7 6a taxa#
  ,canadian corpor,n 7! transf]ee71 z
  expla9$ 9 p>agraph #c1 s t mo/1 if n
  all1 (! tax 3sequ;es : usu,y >ise on
  s* a 4posi;n >e %ift$ 6! corpor,n f !
  taxpay]4 ,! transf]or is p]mitt$
  64pose (! prop]ty 6! transf]ee = an
  8agre$ am.t0 : may 2 o!r ?an ! fair
  m>ket value ( ei s* prop]ty or !
  3sid],n rcvd = x4 ,? 8agre$ am.t01 :
  is subject 6! limit,ns expla9$ 9
  p>agraph #aj "? p>agraph #ad1 g5],y
  2comes ! proce$s ( 4posi;n (! prop]ty
  6! transf]or &! co/ 6! transf]ee4 ,x
  al e/abli%es ! co/ (! 3sid],n receiva#
  0! transf]or f ! transf]ee 9 return =!
  prop]ty transf]r$ 6! transf]ee      #h
             ,,it-#bia;,r#c          c#b
  7see p>agraph #ba74 ,subsec;n #he7#a7
  w apply 9 any case ":
  7a7 ! transf]ee is a taxa# ,canadian
    corpor,n 7see p>agraph #c71
  7b7 ! prop]ty 4pos$ ( is 8eligi#
    prop]ty0 describ$ 9 subsec;n
    #he7#a.a7 7see p>agraph #d71
  7c7 ! transf]or &! transf]ee make a
    valid jo9t elec;n 9 ! =m au?oriz$ 0!
    ,m9i/] 7,t#bjeg7 69voke ! provi.ns (
    subsec;n #he7#a7 7see p>agraph #cg71
  7d7 ! 3sid],n rcvd 0! transf]or =!
    prop]ty 4pos$ ( 6! transf]ee 9cludes
    at l1/ "o %>e (! capital /ock (!
    transf]ee1 &
  7e7 9 ! case ( deprecia# prop]ty (a
    prescrib$ class1 subsec;n #ac7#ba.b7
    is n applica# 7see p>agraph #bc74
  
        ,transf]or 7p>agraph #b7
    
#b4 ,subsec;n #he7#a7 applies 6a
  transf]or t is a 8taxpay]04 8,taxpay]0
  is def9$ 9 subsec;n #bdh7#a7        #i
             ,,it-#bia;,r#c          d#b
  69clude any p]son :e!r or n lia# 6pay
  tax &1 acly1 9cludes 9dividuals1
  corpor,ns1 & tru/s4 7,-;ts on !
  transf] ( prop]ty 6a corpor,n 0a
  "pn]%ip "u subsec;n #he7#b7 >e 3ta9$ 9
  ! curr5t v].n ( ,,it-#cgh1 ,w9d+-up (a
  ,"pn]%ip47

        ,transf]ee 7p>agraph #c7
    
#c4 ,= subsec;n #he7#a7 6apply 6a
  4posi;n ( prop]ty ! transf]ee m/1 at !
  "t (! 4posi;n1 2 a 8taxa# ,canadian
  corpor,n0 z def9$ 9 subsec;n #hi7#a74
  ,basic,y ? is a corpor,n t is a
  8,canadian corpor,n0 n exempt f ,"p ,i
  tax4 ,a 8,canadian corpor,n0 is def9$
  9 subsec;n #hi7#a7 z 2+ a corpor,n t
  at ! relevant "t is resid5t 9 ,canada
  & 0 ei 9corporat$ 9 ,canada or resid5t
  9 ,canada "?\t ! p]iod -m5c+ ,june
  #ah1 #aiga & 5d+ at t "t4

                                     #aj
            ,eligi# ,prop]ty         e#b
            7p>agraphs #d-i7
    
#d4 ,pursuant 6subsec;n #he7#a.a71
  8eligi# prop]ty0 =! purposes (
  subsec;n #he7#a7 m1ns3
  7a7 a capital prop]ty 7o!r ?an r1l
    prop]ty1 an 9t]e/ 9 r1l prop]ty or
    an op;n on r1l prop]ty1 [n$ 0a non-
    resid5t p]son71 9clud+
    7;i7 deprecia# prop]ty1 :e!r or n (a
      prescrib$ class1 7h["e subsec;n
      #ac7#ba.b7 w preclude ! applic,n (
      subsec;n #he7#a7 64posi;ns (
      deprecia# prop]ty (a prescrib$
      class 9 c]ta9 9/.es--see p>agraph
      #bc71 &
    7;ii7 a3.ts receiva# 7o!r ?an ^?
      p]ta9+ 6a busi;s : -putes xs 9come
      on ! ca% basis or ^? on : an
      elec;n "u sec;n #bb has be5 made--
      see p>agraph #h7 ": !y >e 2+
      transf]r$ al;g ) all or sub/anti,y
      all (! o!r assets relat+ 6a
      taxpay]'s busi;s1              #aa
             ,,it-#bia;,r#c          f#b
  7b7 a capital prop]ty t is r1l
    prop]ty1 an 9t]e/ 9 r1l prop]ty or
    an op;n on r1l prop]ty [n$ 0a non-
    resid5t 9sur] ": t prop]ty &!
    prop]ty rcvd z 3sid],n = x >e
    designat$
--------------------------------------#c
    9sur.e prop]ty 7)9 ! m1n+ assign$
    0subsec;n #ach7#ab77 =! ye>1
  7c7 a ,canadian res\rce prop]ty 7see
    p>agraph #f71
  7d7 a =eign res\rce prop]ty1 7see
    p>agraph #g7
  7e7 an eligi# capital prop]ty1
  7f7 an 9v5tory1 9clud+ "w 9 progress
    (a profes.nal :o has elect$ "u
    p>agraph #cd7a71 b exclud+ an
    9v5tory ( r1l prop]ty1 ( 9t]e/s 9
    r1l prop]ty & op;ns on r1l prop]ty1
  7g7 a prop]ty t is a secur;y or debt
    oblig,n us$ or held 0a taxpay] 9 !
    ye> 9 an 9sur.e or m"oy l5d+ busi;s1
    o!r ?an
                                     #ab
             ,,it-#bia;,r#c          a#c
    7;i7 a capital prop]ty1
    7;ii7 an 9v5tory1 or
    7;iii7 a m>k-to-m>ket prop]ty 7z
      def9$ 9 subsec;n #adb.b7#a77 (a
      f9ancial 9/itu;n
  7g4#a7 a specifi$ debt oblig,n 7z
    def9$ 9 subsec;n #adb.b7#a77 (a
    f9ancial 9/itu;n 7o!r ?an a m>k-to-
    m>ket prop]ty72
  7h7 a capital prop]ty t is r1l
    prop]ty1 an 9t]e/ or an op;n 3c]n+
    s* capital prop]ty1 [n$ 0a non-
    resid5t p]son 7o!r ?an a non-resid5t
    9sur]7 & us$ 9 ! ye> 9 a busi;s
    c>ri$ on 0! non-resid5t p]son 9
    ,canada1 7see p>agraph #i7 or
  7i7 a net 9come /abiliz,n a3.t
    7,,nisa7 ,fund ,no4 #b1 z def9$ 9
    subsec;n #bdh7#a74
  
  ,ref] 6! curr5t v].n ( ,,it-#agf1
  ,taxa# ,canadian prop]ty--,9t]e/s 9 &
  op;ns on r1l prop]ty & %>es1 & ,,it-
  #djc1 ,op;ns on r1l e/ate1 =a      #ac
             ,,it-#bia;,r#c          b#c
  4cus.n (! ,,ccra's 9t]pret,n ( :at
  3/itutes an 9t]e/ 9 or an op;n on r1l
  prop]ty4

,note #a3
  ,on ,octob] #aa1 #bjjb1 a ,notice (
  ,ways & ,m1ns ,mo;n 6,am5d ! ,9come
  ,tax ,act 0 ta#d 9 ! ,h\se ( ,-mons
  3ta9+ propos$ legisl,n relat+ 6non-
  resid5t tru/s & =eign 9ve/;t 5tities4
  ,"o (! propos$ am5d;ts provides t =
  tax,n ye>s t 2g9 af #bjjb1 eligi#
  prop]ty =! purposes ( subsec;n #he7#a7
  w n 9clude prop]ty 6: ! propos$ m>k-
  to-m>ket tax,n regime = "picipat+
  9t]e/s 9 =eign 9ve/;t 5tities1 "u
  propos$ subsec;n #id.b7#d71 applies4

#e4 ,9v5tory (a taxpay] :o foll[s ! ca%
  me?od ( report+ 9come z provid$ 9
  subsec;n #bh7#a7 is def9$ 69clude !
  co/ or value (! prop]ty t wd h be5
  relevant 9 -put+ ! taxpay]'s 9come if
  ! 9come f ! busi;s _h n be5        #ad
             ,,it-#bia;,r#c          c#c
  -put$ 9 a3ord.e )! ca% me?od1 &=a f>m+
  busi;s1 9cludes all (! live/ock held 9
  ! c\rse ( c>ry+ on ! busi;s4 ,p>agraph
  #he7#a77c4#b7 provides a calcul,n =
  det]m9+ ! proce$s ( 4posi;n ( 9v5tory
  transf]r$ 6a corpor,n 0a taxpay] :o
  calculates 9come f a f>m+ busi;s ac 6!
  ca% me?od4 ,! am.t det]m9$ 0! calcul,n
  is deem$ 6h be5 rcvd 0! taxpay] z
  proce$s ( 4posi;n at ! "t (! transf] &
  6h be5 rcvd 0! taxpay] 9 ! c\rse (
  c>ry+ on ! f>m+ busi;s s t ! agre$
  am.t m/ 2 9clud$ 9 -put+ ! taxpay]'s
  9come =! ye> : 9cludes ! date (!
  transf] "u subp>agraph #bh7#a77a77;i74
  ,simil>ly1 ": ! 9v5tory is [n$ 0!
  corpor,n 9 3nec;n )a f>m+ busi;s &!
  corpor,n calculates xs 9come us+ ! ca%
  me?od1 ! am.t is deem$ 6be an am.t pd
  0! corpor,n at ! "t (! transf] & 6h
  be5 pd 9 ! c\rse ( xs f>m+ busi;s4

  ,! calcul,n "u p>agraph #he7#a77c4#b7
  is g5],y z foll[s3 7;,a            #ae
             ,,it-#bia;,r#c          d#c
  multipli$ 0;,b divid$ by ;,c7 plus ;,d
  ":

  ;,a is ! am.t t wd 2 9clud$ 9 !
    taxpay]'s 9come 0virtue ( p>agraph
    #bh7#a77c7 if ! taxpay]'s tax,n ye>
    _h 5d$ immly 2f ! transf]1
  ;,b is ! value 7det]m9$ 9 a3ord.e )
    subsec;n #bh7#a.b77 6! taxpay] (
    pur*as$ 9v5tory = : an elec;n "u
    subsec;n #he7#a7 is 2+ made1
  ;,c is ! value 7det]m9$ 9 a3ord.e )
    subsec;n #bh7#a.b77 6! taxpay] ( all
    ! pur*as$ 9v5tory t 0 [n$ 0!
    taxpay]1 &
  ;,d is s* a4i;nal am.t z ! taxpay] &!
    corpor,n designate =! 9v5tory
    transf]r$ 6! corpor,n4
  
  ,9 e6ect1 ;,d is ! am.t t ! taxpay] cd
  h elect$ 69clude 9 9come =! ye> "u
  p>agraph #bh7#a77b7 =! transf]r$
  9v5tory if ! ye> _h 5d$ immly 2f !
  transf]4 ,see ! curr5t v].n (      #af
             ,,it-#bia;,r#c          e#c
  ,,it-#ebf1 ,f>m+--,ca% ,me?od ,9v5tory
  ,adju/;ts1 =a 4cus.n (! 9v5tory
  adju/;ts "u p>agraphs #bh7#a77b7 &
  7c74

  ,fur!r 9=m,n is 3ta9$ 9 ! curr5t v].ns
  ( ,,it-#dbg1 ,live/ock ( ,f>m]s1 &
  ,,it-#dcc1 ,f>m+ or ,fi%+--,use ( ,ca%
  ,me?od4
#f4 ,canadian res\rce prop]ty1 : is
  def9$ 9 subsec;n #ff7#ae71 may 9clude
  r1l prop]ty4 ,3sequ5tly1 not)/&+ !
  exclu.n 9 p>agraph #he7#a.a77f7 3c]n+
  r1l prop]ty t is 9v5tory1 a taxpay]1
  9clud+ a d1l] 9 ,canadian res\rce
  prop]ty 6: subsec;n #ff7#e7 applies1
  may transf] r1l prop]ty t is ,canadian
  res\rce prop]ty 6a taxa# ,canadian
  corpor,n "u subsec;n #he7#a74
#g4 ,0virtue ( subsec;n #he7#a.aa71 a
  =eign res\rce prop]ty1 or an 9t]e/ 9 a
  "pn]%ip : derives all or "p ( xs value
  f "o or m =eign res\rce prop]ties1 w n
  2 an eligi# prop]ty =a transf]     #ag
             ,,it-#bia;,r#c          f#c
  6a non->m's l5g? corpor,n ": x may
  r1sonably 2 3sid]$ t "o (! purposes (!
  4posi;n1 or s]ies ( transac;ns :
  9cludes ! 4posi;n1 is 69cr1se any
  p]son's 5title;t 6claim a =eign tax
  cr$it
--------------------------------------#d
  "u sec;n #abf4 ,? provi.n applies =
  4posi;ns o3urr+ af ,decemb] #ba1
  #bjjj4
#h4 ,if a3.ts receiva# (a taxpay] >e 2+
  transf]r$ 6a corpor,n "u subsec;n
  #he7#a7 z "p (! transf] ( all or
  sub/anti,y all (! taxpay]'s busi;s 6!
  corpor,n1 any loss on ! sale w g5],y 2
  a capital loss 6! taxpay]4 ,": !
  pur*ase is on capital a3.t & an elec;n
  is fil$ "u subsec;n #he7#a71 !
  transf]ee is n 5titl$ 6claim deduc;ns
  "u p>agraph #bj7#a77l7 or 7p7 =a
  res]ve = d\bt;l debts or bad debts on
  ! a3.ts acquir$ & any ga9 or loss on
  r1liz,n (! a3.ts is a capital ga9 or
  loss4 ,! use (! rollov] provi.ns   #ah
             ,,it-#bia;,r#c          a#d
  ( subsec;n #he7#a7 precludes ! use (a
  sec;n #bb elec;n =! a3.ts receiva#4
  ,h["e1 ": ! o!r assets (a busi;s >e 2+
  8roll$0 "u subsec;n #he7#a71 ! a3.ts
  receiva# may 2 sold us+ sec;n #bb
  provid$ t no elec;n "u subsec;n
  #he7#a7 is fil$ =! receiva#s4 ,see !
  curr5t v].n ( ,,it-#ahh1 ,sale (
  ,a3.ts ,receiva#1 =a 4cus.n (! elec;n
  "u sec;n #bb4
#i4 ,0virtue ( subsec;n #he7#a.b71 an
  elec;n "u subsec;n #he7#a7 = prop]ty
  (a non-resid5t p]son describ$ 9 #d7h7
  abv may 2 made only if
  7a7 immly af ! 4posi;n ! transf]ee 0
    3troll$ by
    7;i7 ! transf]or1
    7;ii7 a p]son or p]sons relat$
      7o!rwise ?an 0r1son (a "r ref]r$
      6in p>agraph #bea7#e77b77 6!
      transf]or1 or
    7;iii7 p]sons describ$ 9 7;i7 &
      7;ii72
                                     #ai
             ,,it-#bia;,r#c          b#d
  7b7 all or sub/anti,y all (! prop]ty
    us$ 9 ! busi;s c>ri$ on 9 ,canada &
    9 : ! r1l prop]ty 0 us$ is 4pos$ (
    0! transf]or 6! transf]ee2 &
  7c7 ! 4posi;n 0 n "p (a s]ies (
    transac;ns t result$ 9 3trol (!
    transf]ee 2+ acquir$ at any "t af !
    4posi;n4
  
         ,limits = ,agre$ ,am.t
           7p>agraphs #aj-ad7
    
#aj4 ,g5]al ,limits--,subsec;n #he7#a7
  g5],y provides t ! agre$ am.t c nei
  exce$ ! fair m>ket value (! prop]ty
  4pos$ ( 7! upp] limit "u p>agraph
  #he7#a77c77 nor 2 less ?an ! fair
  m>ket value (! non-%>e 3sid],n rcvd =
  x 7! l[] limit "u p>agraph
  #he7#a77b774 ,if ! fair m>ket value (!
  prop]ty 4pos$ ( is less ?an ! fair
  m>ket value (! non-%>e 3sid],n rcvd1 !
  less] am.t m/ 2 ! agre$ am.t 7see #aa
  = an example74                     #bj
             ,,it-#bia;,r#c          c#d
  ,a4i;nal ,limits--,! agre$ am.t
  det]m9$ "u ! g5]al limits is fur!r
  subject 6specific limits 9 p>agraphs
  #he7#a77c4#a71 7d7 & 7e74 ,^! specific
  limits1 : >e 9 turn subject 6p>agraph
  #he7#a77e4#c71 provide t ! agre$ am.t
  is -p>$ )! fair m>ket value (! prop]ty
  4pos$ (4 ,z a result1 a loss on
  4posi;n (! prop]ty c only 2 recogniz$
  ": ! prop]ty's fair m>ket value at !
  "t ( 4posi;n is less ?an ! o!r
  specifi$ limits 9 p>agraphs
  #he7#a77c4#a71 7d7 & 7e7 at ! "t (
  4posi;n4 ,h["e1 s* loss may 2 d5i$ z a
  result (! applic,n ( subsec;n
  #ac7#ba.b71 subsec;n #ad7#ab71
  subp>agraph #dj7#b77g77;i7 or subsec;n
  #dj7#c.d7 z describ$ 9 p>agraphs #bb
  6#be4

  ,i--,9t]ac;n ( p>agraphs #he7#a77b71
  7c4#a7 & 7e4#c7

                                     #ba
             ,,it-#bia;,r#c          d#d
  ,p>agraph #he7#a77c4#a7 applies 9 !
  calcul,n (! agre$ am.t on ! 4posi;n (
  --9v5tory1
  --capital prop]ty 7o!r ?an deprecia#
    prop]ty (a prescrib$ class--see !
    -;ts on p>agraph #he7#a77e7 2l71
  --a secur;y or debt oblig,n us$ or
    held 9 an 9sur.e or m"oy l5d+ busi;s
    7o!r ?an a capital prop]ty1 9v5tory
    or m>k-to-m>ket prop]ty (a f9ancial
    9/itu;n71
  --a specifi$ debt oblig,n 7o!r ?an a
    m>k-to-m>ket prop]ty7 (a f9ancial
    9/itu;n1 &
  --a ,,nisa ,fund ,no4 #b4
  
  ,p>agraph #he7#a77b7 provides t ! l[]
  limit is g5],y ! fair m>ket value (!
  non-%>e 3sid],n rcvd4 ,h["e1 p>agraph
  #he7#a77c4#a7 /ipulates an a4i;nal l[]
  limit : is equal 6! less] (! fair
  m>ket value (! prop]ty 4pos$ (&! co/
  am.t ( t prop]ty4 ,9 ! case (a 3flict
  2t ! l[] limits set \ 9 p>agraph   #bb
             ,,it-#bia;,r#c          e#d
  #he7#a77b7 & p>agraph #he7#a77c4#a7 z
  describ$ abv1 p>agraph #he7#a77e4#c7
  provides t ! agre$ am.t w 2 ! grt] (!
  two am.ts4

  ,see p>agraph #ab = an example (!
  applic,n ( p>agraph #he7#a77c4#a74

  ,,ii--,9t]ac;n ( p>agraphs #he7#a77b71
  7d7 & 7e4#c7

  ,p>agraph #he7#a77d7 applies 9 !
  calcul,n (! agre$ am.t on ! 4posi;n (
  eligi# capital prop]ty (a busi;s4
  ,p>agraph #he7#a77b7 provides t ! l[]
  limit is g5],y ! fair m>ket value (!
  non-%>e 3sid],n rcvd4 ,h["e1 p>agraph
  #he7#a77d7 sets \ an a4i;nal l[] limit
  : is equal 6! l1/ (
  --#d on #c (! cumulative eligi#
    capital (! busi;s
  --! fair m>ket value (! prop]ty 4pos$
    (1 &
  --! co/ ( t prop]ty4               #bc
             ,,it-#bia;,r#c          f#d
  ,9 ! case (a 3flict 2t ! l[] limits
  set \ 9 p>agraph #he7#a77b7 & p>agraph
  #he7#a77d7 z describ$ abv1 p>agraph
  #he7#a77e4#c7 provides t ! agre$ am.t
  w 2 ! grt] (! two am.ts4

  ,see p>agraph #ac = an example (!
  applic,n ( p>agraph #he7#a77d74

  ,,iii--,9t]ac;n ( p>agraphs
  #he7#a77b71 7e7 & 7e4#c7

  ,p>agraph #he7#a77e7 applies 9 !
  calcul,n (! agre$ am.t on ! 4posi;n (
  deprecia# prop]ty (a prescrib$ class4
  ,p>agraph #he7#a77b7 provides t ! l[]
  limit is ! fair m>ket value (! non-%>e
  3sid],n
--------------------------------------#e
  rcvd4 ,h["e1 p>agraph #he7#a77e7
  e/abli%es an a4i;nal l[] limit : is
  equal 6! l1/ (
  --! undepreciat$ capital co/ ( all !
    prop]ty (! class1                #bd
             ,,it-#bia;,r#c          a#e
  --! fair m>ket value (! prop]ty 4pos$
    (1 &
  --! co/ ( t prop]ty4
  
  ,9 ! case (a 3flict 2t ! l[] limits
  set \ 9 p>agraph #he7#a77b7 & p>agraph
  #he7#a77e7 z describ$ abv1 p>agraph
  #he7#a77e4#c7 provides t ! agre$ am.t
  w 2 ! grt] (! two am.ts4

  ,see p>agraph #ad = an example (!
  applic,n ( p>agraph #he7#a77e74

  ,example ( ,g5]al ,limits
#aa4 ,? example demon/rates ! tax e6ect
  ":3
  7a7 ! orig9al agre$ am.t &
  7b7 ! fair m>ket value (! 3sid],n
    exce$
  7c7 ! fair m>ket value (! prop]ty
    transf]r$4
  

                                     #be
             ,,it-#bia;,r#c          b#e
  ,assump;ns
,! type ( eligi# prop]ty is n relevant4
,orig9al ,agre$ ,am.t """"""""" 4#ajj7a7
,fair m>ket value ( prop]ty
  transf]r$ """"""""""""""""""""" #hj7c7
,3sid],n3
,fair m>ket value ( non-%>e
  3sid],n rcvd """"""""""""""""""" 4#adi
,fair m>ket value ( %>e
  3sid],n rcvd """""""""""""""""""""" #a
,total ,3sid],n """"""""""""""" 4#aej7b7

  ,! agre$ am.t wd 2 deem$ 0p>agraph
  #he7#a77b7 6be 4#adi except t p>agraph
  #he7#a77c7 7: deems ! agre$ am.t 6be
  4#hj7 takes prec$;e ov] p>agraph
  #he7#a77b74 ,! excess (! fair m>ket
  value (! total 3sid],n rcvd ov] ! fair
  m>ket value (! prop]ty transf]r$1
  4#gj1 less any por;n : may 2 deem$
  0sec;n #hd 6be a divid5d is taxa# 9 !
  h&s (! transf]or z a b5efit pursuant
  6subsec;n #ae7#a74 ,see ! curr5t v].n
                                     #bf
             ,,it-#bia;,r#c          c#e
  ( ,,it-#dcb1 ,appropri,n ( ,prop]ty
  6,%>ehold]s4

  ,example (! applic,n ( p>agraph
  #he7#a77c4#a7
#ab4 ,? example demon/rates ! tax e6ect
  ":3
  7a7 ! orig9al agre$ am.t
  is less ?an ! less] (
  7b7 ! fair m>ket value (! prop]ty &
  7c7 xs co/ am.t4
  
  ,assump;ns
  ,! prop]ty is 9v5tory or capital
  prop]ty o!r ?an deprecia# prop]ty (a
  prescrib$ class4
,orig9al ,agre$ ,am.t """"""""" 4#ajj7a7
,fair m>ket value (! prop]ty
  at ! "t ( 4posi;n """"""""""" 4#aej7b7
,co/ am.t 6! transf]or at ! "t
  ( 4posi;n """"""""""""""""""" 4#abj7c7


                                     #bg
             ,,it-#bia;,r#c          d#e
,3sid],n3
,fair m>ket value ( non-%>e
  3sid],n rcvd """""""""""""""""""" 4#ij
,fair m>ket value ( %>e
  3sid],n rcvd """"""""""""""""""""" #fj
,total ,3sid],n """""""""""""""""" 4#aej

  ,! agre$ am.t is deem$ 0p>agraph
  #he7#a77c4#a7 6be 4#abj1 ! less] (!
  fair m>ket value (! prop]ty & xs co/
  am.t 6! transf]or at ! "t ( 4posi;n4
  ,! transf]or is "!by prev5t$ f cr1t+ a
  loss on ! 4posi;n4 ,! t]m 8co/ am.t0 (
  capital prop]ty or 9v5tory1 z 4cuss$ 9
  ? example1 is def9$ 9 subsec;n
  #bdh7#a7 z 2+ respectively ! adju/$
  co/ base or xs value at ! "t ( 4posi;n
  z det]m9$ =! purpose ( -put+ !
  transf]or's 9come4

  ,h["e1 9 ? example if ! non-%>e
  3sid],n rcvd =! prop]ty is 9/1d 4#aej1
  ? latt] am.t is deem$ 0p>agraphs
  #he7#a77b7 & 7e4#c7 6be ! agre$    #bh
             ,,it-#bia;,r#c          e#e
  am.t4 ,p>agraph #he7#a77c7 has no
  applic,n 2c ! am.t deem$ 0p>agraph
  #he7#a77e4#c7 6be ! agre$ am.t is n
  grt] ?an ! fair m>ket value (! prop]ty
  at ! "t ( 4posi;n4

  ,example (! applic,n ( p>agraph
  #he7#a77d7
#ac4 ,? example demon/rates ! tax e6ect
  ":3
  7a7 ! orig9al agre$ am.t
  is less ?an ! l1/ (
  7b7 ! fair m>ket value (! prop]ty1
  7c7 xs co/1 &
  7d7 #d ov] #c (! cumulative eligi#
    capital (! relevant busi;s4
  
  ,assump;ns
  ,! taxpay] has only "o busi;s4
  ,! prop]ty is eligi# capital prop]ty4
,orig9al ,agre$ ,am.t """"""""" 4#ajj7a7
,fair m>ket value (! prop]ty
  at ! "t ( 4posi;n """""""""""" #ahj7b7
                                     #bi
             ,,it-#bia;,r#c          f#e
,co/ (! prop]ty 6! taxpay] """"" #bjj7c7
#d ov] #c (! cumulative eligi#
  capital immly 2f ! 4posi;n """ #afj7d7
,3sid],n3
,fair m>ket value ( non-%>e
  3sid],n rcvd """"""""""""""""""" 4#ajj
,fair m>ket value ( %>e
  3sid],n rcvd """"""""""""""""""""" #hj
,total ,3sid],n """""""""""""""""" 4#ahj

  ,! agre$ am.t is deem$ 0p>agraph
  #he7#a77d7 6be 4#afj1 t is1 ! l1/ (
  #d ov] #c (! cumulative eligi#
  capital1 ! co/ (! prop]ty &! fair
  m>ket value (! prop]ty at ! "t (
  4posi;n4 ,"! is "!=e no am.t deducti#
  pursuant 6p>agraph #bd7#a77a7 2c ?ree-
  qu>t]s (! deem$ proce$s ( 4posi;n (
  4#afj
--------------------------------------#f
  equals ! bal.e (! cumulative eligi#
  capital immly 2f ! 4posi;n4 ,see al
  p>agraph #bd4
                                     #cj
             ,,it-#bia;,r#c          a#f
  ,example (! applic,n ( p>agraph
  #he7#a77e7
#ad4 ,? example demon/rates ! tax e6ect
  ":3
  7a7 ! orig9al agre$ am.t
  is less ?an ! l1/ (
  7b7 ! fair m>ket value (! prop]ty1
  7c7 xs co/1 &
  7d7 ! undepreciat$ capital co/ 7,,ucc7
    ( all ! prop]ty (! relevant class4
  
  ,assump;ns
  ,! prop]ty is ! rema9+ deprecia#
  prop]ty (a prescrib$ class4

  ,! transac;n is n subject 6subsec;n
  #ac7#ba.b7 7see p>agraph #bc74
,orig9al ,agre$ ,am.t """""""""" 4#dj7a7
,fair m>ket value (! prop]ty
  at ! "t ( 4posi;n """"""""""""" #fe7b7
,co/ (! prop]ty 6! transf]or """" #ij7c7
,,ucc ( all prop]ty ( t class
  immly 2f ! 4posi;n """""""""""" #hj7d7
                                     #ca
             ,,it-#bia;,r#c          b#f
,3sid],n3
,fair m>ket value ( non-%>e
  3sid],n rcvd """""""""""""""""""" 4#dj
,fair m>ket value ( %>e
  3sid],n rcvd """"""""""""""""""""" #be
,total ,3sid],n """"""""""""""""""" 4#fe

  ,! agre$ am.t is deem$ 0p>agraph
  #he7#a77e7 6be 4#fe4 ,a t]m9al loss (
  4#dj o!rwise >is+ is reduc$ 64#ae1 an
  am.t t reflects ! actual decl9e 9 !
  value (! prop]ty4 ,! 4#be di6];e is !
  excess (! fair m>ket value (! prop]ty
  74#fe7 ov] ! am.t orig9,y agre$ ^u 0!
  taxpay] &! corpor,n 74#dj74

        ,transf]s ( ,deprecia# &
       ,eligi# ,capital ,prop]ty
           7p>agraphs #ae-af7
    
#ae4 ,": m ?an "o deprecia# prop]ty (a
  prescrib$ class1 or m ?an "o eligi#
  capital prop]ty >e transf]r$
  simultane\sly 6a corpor,n "u       #cb
             ,,it-#bia;,r#c          c#f
  subsec;n #he7#a71 p>agraph
  #he7#a77e4#a7 provides t ea* s*
  prop]ty is transf]r$ sep>ately1 9 !
  ord] designat$ 0! taxpay]4 ,if !
  taxpay] does n designate any s* ord]1
  ! ,m9i/] w designate ! ord]4 ,!
  purpose ( p>agraph #he7#a77e4#a71 9
  provid+ t ea* prop]ty is transf]r$
  sep>ately 9 a designat$ ord]1 is 6all[
  a reduc;n 9 ! ,,ucc (! class1 or !
  cumulative eligi# capital1 z ea*
  prop]ty is transf]r$4 ,": prop]ty is
  2+ transf]r$ 6only "o transf]ee1 !
  ord] 9 : prop]ties >e transf]r$ w only
  2come significant ": 3sid],n o!r ?an
  %>es is rcvd on ! transf]1 e4g41 ":
  ca% & %>es >e 9clud$ 9 ! 3sid],n4

  ,! foll[+ is an example (! applic,n (
  p>agraph #he7#a77e4#a7 6! transf] (
  two deprecia# prop]ties (! same
  prescrib$ class3

                                     #cc
             ,,it-#bia;,r#c          d#f
  ,assump;ns
,co/ ( ,prop]ty ;,a """""""""""""" 4#ajj
,fair m>ket value ( ,prop]ty
  ;,a """""""""""""""""""""""""""""" #hj
,fair m>ket value ( non-%>e
  3sid],n rcvd = ,prop]ty ;,a """""" #hj
,co/ ( ,prop]ty ;,b """"""""""""""" #ejj
,fair m>ket value ( ,prop]ty
  ;,b """"""""""""""""""""""""""""" #djj
,fair m>ket value ( non-%>e
  3sid],n rcvd = ,prop]ty ;,b """" ,,nil
,,ucc (! class """""""""""""""""""" #cjj

  ,! taxpay] /ipulates t ! prop]ties >e
  6be transf]r$ at ! m9imum all[a# am.ts
  & designates ! ord] 6be ,prop]ty ;,a
  foll[$ 0,prop]ty ;,b4 ,6a*ieve ! be/
  result1 ! taxpay] %d elect 4#hj =
  ,prop]ty ;,a :1 :5 deduct$ f ! ,,ucc
  (! class1 l1ves a bal.e ( 4#bbj4
  ,prop]ty ;,b wd !n 2 transf]r$ at an
  agre$ am.t ( 4#bbj & no recapture (
  capital co/ all[.e results4 ,if ! ord]
  ( transf] 0 ,prop]ty ;,b foll[$    #cd
             ,,it-#bia;,r#c          e#f
  0,prop]ty ;,a1 ,prop]ty ;,b wd h 6be
  transf]r$ at an am.t ( 4#cjj &! ,,ucc
  (! class wd 2 reduc$ 6nil4 ,prop]ty
  ;,a _c 2 transf]r$ at an agre$ am.t (
  nil 2c (! non-%>e 3sid],n ( 4#hj rcvd
  = x4 ,prop]ty ;,a m/ "!=e 2 transf]r$
  at an am.t ( 4#hj pursuant 6p>agraphs
  #he7#a77b7 & #he7#a77e4#c7 & recapture
  ( capital co/ all[.e ( 4#hj results4
#af4 ,subsec;n #he7#a7 may 2 us$ 6h a
  corpor,n1 : is [n$ 0two or m taxa#
  ,canadian corpor,ns1 transf] eligi#
  prop]ty or an undivid$ 9t]e/ 9 s*
  prop]ty 6^! %>ehold] corpor,ns on a
  tax-def]r$ basis provid$ t ! 3di;ns
  describ$ 9 subsec;n #he7#a7 >e met
  7see p>agraphs #a1 #c & #d7 & provid$
  t ! transac;n is n "o 6: subsec;n
  #ac7#ba.b7 is applica# 7see p>agraph
  #bc74 ,an example (! applic,n (
  subsec;n #he7#a7 6s* a transac;n
  foll[s3

                                     #ce
             ,,it-#bia;,r#c          f#f
  ,assump;ns
  ;,a ,co & ;,b ,co h [n$ ! %>es ( ;,c
  ,co 9 ! ratio ( #fj3dj =a numb] (
  ye>s4 ;,c ,co's sole assets >e l& hav+
  a co/ ( 4#a1jjj &a fair m>ket value (
  4#b1jjj & two build+s1 "o hav+ a co/ (
  4#f1jjj &a fair m>ket value ( 4#ab1jjj
  7,build+ ;,a7 &! o!r hav+ a co/ (
  4#d1jjj &a fair m>ket value ( 4#h1jjj
  7,build+ ;,b74 ,bo? build+s >e 9clud$
  9 ,class #c = purposes ( capital co/
  all[.e4 ,! ,,ucc (! ,class #c prop]ty
  is 4#e1jjj4 ,! corpor,ns >e 9corporat$
  9 a jurisdic;n t does n prohibit a
  corpor,n f [n+ %>es ( xs p>5t
  corpor,n4

  ,! l& & build+s1 : >e eligi# prop]ty1
  >e 6be transf]r$ on a tax def]r$ basis
  9 s* a mann] t ea* ( ;,a ,co & ;,b ,co
  w h a #fj@3p & #dj@3p undivid$ 9t]e/ 9
  ! l&1 respectively4 ,9 a4i;n1 ;,a ,co

                                     #cf
             ,,it-#bia;,r#c           #g
  w rcv ,build+ ;,a & ;,b ,co w rcv
  ,build+ ;,b4 ;,a ,co w give 3sid],n
  6;,c ,co 3si/+ ( pref]r$ %>es hav+ a
  fair m>ket value ( 4#ac1bjj4 ;,b ,co w
  give 3sid],n 6;,c ,co 3si/+ ( pref]r$
  %>es hav+ a fair m>ket value (
  4#h1hjj4 ,=! purposes ( subsec;n
  #he7#a71 elec;ns may 2 made 0;,c ,co &
  ;,a ,co at an agre$ am.t ( 4#fjj =!
  undivid$ 9t]e/ 9 ! l& & at 4#c1jjj =!
  build+4 ,simil>ly1 ;,c ,co & ;,b ,co
  may elect at an agre$ am.t ( 4#djj =!
  l& & 4#b1jjj =! build+4 ,if ! l[]
  limits set \ 9 p>agraph #he7#a77e7
  7see p>agraph #aj7 7 foll[$ =!
  transf]s (! deprecia# prop]ty z
  describ$ 9 ? example1 ! ,,ucc (! class
  wd n 2 allocat$ propor;n,y 2t !
  transf]ees4 ,all or mo/ ( x wd 2
  allocat$ 6! transf] t o3urs f/ or is
  designat$ 6o3ur f/ 7see p>agraph #ae74
  ,! ,,ccra has1 h["e1 adopt$ a practice
  = divisive reorganiz,ns describ$ 9
  p>agraph #ee7#c77a7 or 7b7 (!      #cg
             ,,it-#bia;,r#c          a#g
  ,act 69t]pret ! ref];e to 8!
  undepreciat$ capital co/ 6! taxpay] (
  all prop]ty ( t class immly 2f !
  4posi;n0 f.d 9 subp>agraph
  #he7#a77e77;i7 6m1n t propor;n (!
  ,,ucc (! class t ! capital co/ 7or
  fair m>ket value7 (! asset immly 2f !
  4posi;n is (! capital co/ 7or fair
  m>ket value7 ( all prop]ty ( t class
  immly 2f ! 4posi;n4 ,a simil>
  adm9i/rative 3ces.n has be5 adopt$ =
  transf]s ( eligi# capital prop]ty "u
  subp>agraph #he7#a77d77;i74

          ,excess ,liabilities
             7p>agraph #ag7
    
#ag4 ,! ,,ccra has reconsid]$ xs posi;n
  t p>agraph #he7#a77b7 wd n apply 6a
  transf] ( prop]ty hav+ liabilities 9
  excess ( xs co/ am.t ": ! excess
  liabilities 7 allocat$ 6o!r prop]ty
  transf]r$ or 7 assum$ 0! transf]ee 9
  3sid],n =! deliv]y (a promissory   #ch
             ,,it-#bia;,r#c          b#g
  note 9 ! am.t (! excess4 ,= transf]s (
  prop]ty o3urr+ af #bjjj1 x is !
  ,,ccra's posi;n t ": a prop]ty 7! 8,f/
  ,prop]ty07 is transf]r$ 6a corpor,n "u
  sec;n #he &3
  7a7 ! corpor,n assumes an oblig,n (!
    transf]or z 3sid],n =! acquisi;n f !
    transf]or (a second prop]ty 7=
    example a promissory note (!
    transf]or7 &! corpor,n subsequ5tly
    4poses ( t prop]ty 6! transf]or2
  7b7 ! corpor,n assumes an oblig,n (!
    transf]or z 3sid],n =! redemp;n or
    acquisi;n 0! corpor,n ( xs %>es held
    0! transf]or2 or
  7c7 ": ! transf]or is a corpor,n1 !
    transf]ee corpor,n subscribes = %>es
    (! transf]or1
  
  ! oblig,n assum$ or ! prop]ty 3tribut$
  w 2 reg>d$ z non-%>e 3sid],n rcvd =!
  ,f/ ,prop]ty =! purposes ( p>agraph
  #he7#a77b74 ,?us1 if ! total non-%>e
  3sid],n rcvd 0! transf]or =! ,f/   #ci
             ,,it-#bia;,r#c          c#g
  ,prop]ty exce$s ! am.t agre$ ^u 0!
  "pies 9 _! elec;n "u subsec;n #he7#a71
  p>agraph #he7#a77b7 w apply 69cr1se !
  agre$ am.t4

  ,3sid] ! foll[+ example1 ,sellco [ns a
  capital prop]ty hav+ a co/ am.t (
  4#bjj1 a fair m>ket value ( 4#ajjj &
  an \t/&+ mortgage on ! prop]ty (
  4#gjj4 ,sellco transf]s ! 4#ajjj
  prop]ty 6,buyco1 a relat$ corpor,n1 "u
  subsec;n #he7#a7 & al issues 6,buyco a
  promissory note = 4#ejj4 ,! agree;t 2t
  ,sellco & ,buyco provides t1 z 3sid],n
  =! capital prop]ty1 ,buyco w assume
  4#bjj (! mortgage liabil;y & w issue
  6,sellco 4#ejj wor? ( redeema# pref]r$
  %>es & 4#cjj wor? ( -mon %>es & t1 z
  3sid],n =! promissory note issu$
  0,sellco1 ,buyco w assume 4#ejj (!
  mortgage liabil;y ( ,sellco4 ,at "s "t
  af ! transf]1 ,buyco redeems ! pref];e
  %>es 0surr5d]+ ! promissory note
  6,sellco4 ,9 ! ,,ccra's view !     #dj
             ,,it-#bia;,r#c          d#g
  full am.t (! mortgage is assum$ z
  3sid],n =! transf]r$ prop]ty4 ,sellco
  has rcvd 4#gjj ( non-%>e 3sid],n =!
  transf] &1 0virtue ( p>agraph
  #he7#a77b71 ? is ! l[e/ am.t t cd 2
  elect$ 9 respect (! transf] "u
  subsec;n #he7#a74

  ,p>agraph #he7#a77b71 h["e1 w n apply
  ": ! fair m>ket value (! non-%>e
  3sid],n giv5 79clud+ ! assump;n ( debt
  0! transf]ee7 is allocat$ am;g s"eal
  prop]ties transf]r$ & reta9$ 0!
  transf]ee &! am.t allocat$ 6ea* asset
  is n grt] ?an ! agre$ am.t 9 respect (
  ea* asset4

      ,b5efits ,3f]r$ on a ,relat$
         ,p]son 7p>agraph #ah7
    
#ah4 ,": a taxpay] transf]s prop]ty 6a
  corpor,n "u subsec;n #he7#a7 &! fair
  m>ket value (! prop]ty t is transf]r$
  6! corpor,n exce$s ! grt] (3       #da
             ,,it-#bia;,r#c          e#g
  7a7 ! fair m>ket value ( all 3sid],n
    79clud+ %>es (! corpor,n7 rcvd 0!
    taxpay] &
  7b7 ! am.t agre$ ^u 0! taxpay] &!
    corpor,n
  
  & x is r1sona# 6reg>d any "p (! excess
  z a b5efit t ! taxpay] desir$ 63f] on
  a p]son relat$ 6! taxpay]1 ! provi.ns
  ( p>agraph #he7#a77e4#b7 w op]ate
  69cr1se ! am.t o!rwise agre$ ^u 0!
  am.t (! b5efit4

  ,p>agraph #he7#a77e4#b7 does n apply
  ": ! transf]ee is a :olly [n$ corpor,n
  (! taxpay]4 ,a 8:olly [n$ corpor,n0 is
  def9$ 9 subsec;n #he7#a.c7 6m1n a
  corpor,n all (! issu$ & \t/&+ %>es ( :
  7o!r ?an director's qualify+ %>es7
  2l;g to3
  7c7 ! taxpay]1
  7d7 a corpor,n t is a :olly [n$
    corpor,n (! taxpay]1 or
                                     #db
             ,,it-#bia;,r#c          f#g
  7e7 any -b9,n ( p]sons describ$ 9 7c7
    or 7d74
  
  ,! def9i;n ( 8:olly [n$ corpor,n0 wd
  9clude second & l[]-ti]$ :olly [n$
  subsidi>ies4 ,= example1 ": ;,a ,co
  [ns all (! issu$ & \t/&+ %>es ( ;,b
  ,co : 9 turn [ns all (! issu$ & \t/&+
  %>es ( ;,c ,co : [ns all (! issu$ &
--------------------------------------#h
  \t/&+ %>es ( ;,d ,co1 ;,d ,co wd
  qualify z a :olly [n$ corpor,n ( ;,a
  ,co =! purposes ( p>agraph
  #he7#a77e4#b74

           ,pass5g] ,vehicles
             7p>agraph #ai7
    
#ai4 ,p>agraph #he7#a77e4#d7 provides t
  ":1 9 a non->m's l5g? transac;n1 !
  transf]or 4poses (a pass5g] vehicle 7z
  def9$ 9 subsec;n #bdh7#a77 : _h an
  actual co/ 6! transf]or ( m ?an ! am.t
  prescrib$ 9 subsec;n #gcjg7#a7     #dc
             ,,it-#bia;,r#c          a#h
  (! ,regul,ns1 ! agre$ am.t % 2 deem$
  6be equal 6! ,,ucc (! vehicle 6!
  transf]or immly 2f ! 4posi;n4 ,h["e1
  =! purposes ( det]m9+ a r1sona# /&by
  *>ge "u subsec;n #f7#b71 ! co/ 6!
  corpor,n (! vehicle is 3sid]$ 6be an
  am.t equal 6xs fair m>ket value immly
  2f ! transf]4 ,? rule sup]s$es ! m
  g5]al rule 9 p>agraph #he7#a77e7 =
  deprecia# prop]ty (a prescrib$ class
  7see p>agraph #aj & #ad74 ,! curr5t
  v].n ( ,,it-#dai1 ,m1n+ ( ,>m's ,l5g?1
  3ta9s -;ts on :e!r a taxpay] is d1l+
  at >m's l5g? )a corpor,n4

  ,subsec;n #gcjg7#a7 (! ,regul,ns
  prescribes ! foll[+ am.ts3
  7a7 = an automobile acquir$ af ,augu/
    #aihi & 2f #aiia1 4#bd1jjj1 &
  7b7 = an automobile acquir$
    7;i7 af #aiij & 2f #aiig1 4#bd1jjj1
    7;ii7 9 #aiig1 4#be1jjj1
    7;iii7 9 #aiih or #aiii1 4#bf1jjj1
                                     #dd
             ,,it-#bia;,r#c          b#h
    7;iv7 9 #bjjj1 4#bg1jjj1 &
    7;v7 af #bjjj1 4#cj1jjj1
    
    plus ! ,gds & ,s]vices ,tax & any
    prov9cial sales tax t wd 2 paya# if
    ! automobile _h be5 acquir$ = s*
    am.t not$ 9 7;i7 to 7;v7 abv4
  
          ,%>es (! ,transf]or
             7p>agraph #bj7
    
#bj4 ,9 c]ta9 circum/.es x may 2 desira#
  6transf] %>es (a corpor,n 6! corpor,n
  "u subsec;n #he7#a74 ,= example1 ?
  te*nique may 2 us$ 6cry/allize a
  capital ga9s exemp;n )\t hav+
  69corporate a new corpor,n4 ,:ile ?
  te*nique c 2 e6ective 6a*ieve ! desir$
  tax 3sequ;es1 c]ta9 precau;ns m/ 2
  obs]v$4 ,= example1 ! a7regate am.t (
  any non-%>e 3sid],n rcvd =! %>es plus
  ! pd-up capital (! new %>es rcvd z
  3sid],n on ! transf] _c exce$ ! pd-up
  capital (! old %>es : >e !         #de
             ,,it-#bia;,r#c          c#h
  subject (! transf] or a deem$ divid5d
  "u subsec;n #hd7#c7 &/or #hd7#a7 7#a7
  w >ise4 ,? is s 2c ! acquisi;n (! %>e
  0! corpor,n is an acquisi;n ( xs %>es
  =! purposes ( subsec;n #hd7#c7 &! am.t
  pd w1 0virtue ( subsec;n #hd7#e71
  9clude ! am.t 0: ! pd-up capital (!
  class ( new %>es has 9cr1s$ 0virtue (
  _! issue4 ,9 a4i;n1 a divid5d may >ise
  "u subsec;n #hd7#c7 ": ! legal pd-up
  capital (! new %>es exce$s ! pd-up
  capital (! old %>es 7see p>agraph
  #bi74

7#a7 ,correct$ on ,m>* #ah1 #bjje

      ,co/ 6,transf]or ( ,3sid],n
          ,rcvd f ! ,corpor,n
             7p>agraph #ba7
    
#ba4 ,p>agraphs #he7#a77f71 7g7 & 7h7
  apply =! purposes ( det]m9+ ! co/ (
  any prop]ty rcvd z 3sid],n 0!
  transf]or4 ,! a7regate co/ (!      #df
             ,,it-#bia;,r#c          d#h
  3sid],n w 2 equal 6! agre$ am.t z
  det]m9$ 0subsec;n #he7#a7 7b n 9clud+
  any am.t >is+ z a result (! applic,n (
  p>agraph #he7#a77e4#b774 ,p>agraphs
  #he7#a77f71 7g7 & 7h7 allocate ! co/ z
  foll[s 7assum+ t only "o type ( non-
  %>e 3sid],n1 & "o class ( ei pref]r$
  or -mon %>es1 or "o class ( bo?1 >e
  rcvd73
  7a7 non-%>e 3sid],n--! co/ is deem$
    6be ! less] (! fair m>ket value (!
    non-%>e 3sid],n rcvd &! fair m>ket
    value (! transf]r$ prop]ty1
  7b7 pref]r$ %>es--! co/ is deem$ 6be !
    less] (! excess (! agre$ am.t ov] !
    fair m>ket value ( non-%>e 3sid],n
    &! fair m>ket value ( all pref]r$
    %>es receiva# 0! transf]or z 3sid],n
    =! 4posi;n1 &
  7c7 -mon %>es--! co/ is deem$ 6be !
    bal.e (! agre$ am.t af deduct+ !
    por;ns attribut$ 6! non-%>e 3sid],n
    &! pref]r$ %>es4
                                     #dg
             ,,it-#bia;,r#c          e#h
  ,": m ?an "o type ( non-%>e 3sid],n1
  or m ?an "o class ( ei pref]r$ or -mon
  %>es1 or bo?1 >e rcvd z 3sid],n =!
  transf]1 p>agraphs #he7#a77f71 7g7 &
  7h7 w allocate ! a7regate co/ (! non-
  %>e 3sid],n1 ! pref]r$ %>es or ! -mon
  %>es z det]m9$ "u 7a71 7b7 or 7c7 abv
  6s* prop]ty bas$ on ! propor;n t !
  fair m>ket value ( ea* "picul> prop]ty
  is (! a7regate fair m>ket value ( t
  type ( 3sid],n rcvd4

      ,loss ,f ,4posi;n ( ,prop]ty
           7p>agraphs #bb-be7
    
#bb4 ,v>i\s /op-loss rules may apply ":
  a taxpay] transf]s a prop]ty ) an
  a3ru$ loss 6a p]son :o is an a6iliat$
  p]son (! taxpay]4 ,subsec;n #bea.a7#a7
  3ta9s ! rules 6det]m9e :5 p]sons >e
  a6iliat$ ) ea* o!r4 ,subsec;n
  #bea.a7#a7 provides1 am;g/ o!r ?+s1 t
  8a6iliat$ p]sons01 or p]sons a6iliat$
  ) ea* o!r1 9clude                  #dh
             ,,it-#bia;,r#c          f#h
  7a7 a corpor,n &
    7;i7 a p]son :o 3trols ! corpor,n1
    7;ii7 ea* memb] ( an a6iliat$ gr\p t
      3trols ! corpor,n1 &
    7;iii7 a sp\se or -mon-law "pn] (a
      p]son describ$ 9 subp>agraph 7;i7
      or 7;ii72
--------------------------------------#i
  7b7 two corpor,ns1 if
    7;i7 ea* corpor,n is 3troll$ 0a
      p]son1 &! p]son :o 3trols "o
      corpor,n is a6iliat$ )! p]son :o
      3trols ! o!r corpor,n1
    7;ii7 "o corpor,n is 3troll$ 0a
      p]son1 ! o!r corpor,n is 3troll$
      0a gr\p ( p]sons1 & ea* memb] ( t
      gr\p is a6iliat$ ) t p]son1 or
    7;iii7 ea* corpor,n is 3troll$ 0a
      gr\p ( p]sons1 & ea* memb] ( ea*
      gr\p is a6iliat$ ) at l1/ "o memb]
      (! o!r gr\p2 &
  7c7 a corpor,n &a "pn]%ip1 if !
    corpor,n is 3troll$ 0a "picul> gr\p
    ( p]sons ea* memb] ( : is        #di
             ,,it-#bia;,r#c          a#i
    a6iliat$ ) at l1/ "o memb] (a
    major;y-9t]e/ gr\p ( "pn]s (!
    "pn]%ip1 & ea* memb] ( t major;y-
    9t]e/ gr\p is a6iliat$ ) at l1/ "o
    memb] (! "picul> gr\p4
  
  ,3trol =! purposes ( det]m9+ :e!r
  p]sons >e a6iliat$ p]sons m1ns
  83troll$ directly or 9directly 9 any
  mann] :at"e0 :1 pursuant 6subsec;n
  #bef7#e.a71 exp&s ! 3cept ( 3trol
  69clude :at is (t5 3sid]$ 6be de facto
  3trol4 ,see ! curr5t v].n ( ,,it-#fd1
  ,corpor,ns3 ,associ,n & ,3trol1 =a
  4cus.n ( subsec;n #bef7#e.a74
#bc4 ,! provi.ns ( subsec;n #ac7#ba.b7 w
  apply 6! transf] (a loss prop]ty : is
  deprecia# prop]ty (a prescrib$ class
  6a corpor,n : is an a6iliat$ p]son
  7see p>agraph #bb7 (! transf]or :51 on
  ! #cj? "d af ! transf]1 an a6iliat$
  p]son (! transf]or [ns or has ! "r
  6acquire ! transf]r$ prop]ty4 ,": !
  provi.ns ( subsec;n #ac7#ba.b7     #ej
             ,,it-#bia;,r#c          b#i
  >e applica#1 subsec;n #he7#a7 is n
  applica# &! proce$s ( 4posi;n >e
  basic,y deem$ 6be s* t ! transf]or is
  d5i$ any t]m9al loss t mi<t o!rwise
  >ise4 ,9 s* a case1 ! t]m9al loss w 2
  susp5d$ & w n 2 availa# 6! transf]or
  until ! "t t is immly 2f ! e>lie/ (!
  ev5ts li/$ 9 clauses
  #ac7#ba.b77e77;iii77,a7 to 7,e74 ,9 !
  m1n"t1 ! transf]or is deem$ 6[n a
  deprecia# prop]ty hav+ a capital co/
  equal 6! am.t (! d5i$ loss & w 2
  5titl$ 6claim capital co/ all[.e "!on4
#bd4 ,! provi.ns ( subsec;n #ad7#ab7 may
  apply 6re/rict ! deduc;n "u p>agraph
  #bd7#a77a7 on ! 4posi;n ( eligi#
  capital prop]ty 6a corpor,n t is an
  a6iliat$ p]son (! transf]or4 ,subsec;n
  #ad7#ab7 applies ":1 dur+ ! p]iod t
  2g9s #cj "ds 2f & 5ds #cj "ds af !
  4posi;n1 ! transf]or or a p]son
  a6iliat$ )! transf]or acquires !
  "picul> prop]ty or prop]ty t is
  id5tical 6! "picul> prop]ty &1     #ea
             ,,it-#bia;,r#c          c#i
  at ! 5d (! p]iod1 ! transf]or or a
  p]son a6iliat$ )! transf]or [ns !
  prop]ty or sub/itut$ prop]ty4 ,9 s* a
  case1 ! deduc;n "u p>agraph #bd7#a77a7
  w 2 susp5d$ & w n 2 availa# 6!
  transf]or until ! "t t is immly 2f !
  e>lie/ (! ev5ts li/$ 9 p>agraphs
  #ad7#ab77c7 to 7g74 ,9 ! m1n"t1 !
  transf]or is deem$ 6[n eligi# capital
  prop]ty 9 respect (a busi;s & w 2
  5titl$ 6claim a deduc;n "u p>agraph
  #bj7#a77b7 = s* prop]ty4
#be4 ,subp>agraph #dj7#b77g77;i7 or
  subsec;n #dj7#c.d7 may apply ": a loss
  prop]ty : is a capital prop]ty is
  transf]r$ 6a corpor,n : is an a6iliat$
  p]son (! transf]or4 ,! /op-loss rules
  w g5],y apply ":1 dur+ ! p]iod t 2g9s
  #cj "ds 2f & 5ds #cj "ds af ! 4posi;n1
  ! transf]or or a p]son a6iliat$ )!
  transf]or acquires ! "picul> prop]ty
  or prop]ty t is id5tical 6! "picul>
  prop]ty1 & at ! 5d (! p]iod1 !
  transf]or or a p]son a6iliat$ )!   #eb
             ,,it-#bia;,r#c          d#i
  transf]or [ns ! prop]ty or sub/itut$
  prop]ty4 ,": ei ( ^! provi.ns applies
  x deems any capital loss >is+ on !
  4posi;n 6be nil4 ,": ! transf]or is an
  9dividual 7o!r ?an a tru/71 ! capital
  loss w 2 a 8sup]ficial loss0 )9 ! m1n+
  ( sec;n #ed & subp>agraph
  #dj7#b77g77;i7 w apply 6d5y ! loss4
  ,0virtue ( p>agraph #ec7#a77f7 ! am.t
  (! d5i$ capital loss (! 9dividual w 2
  a4$ 6! adju/$ co/ base (! capital
  prop]ty [n$ 0! corpor,n4 ,": !
  transf]or is a corpor,n1 tru/ or
  "pn]%ip1 x is ! rule 9 subsec;n
  #dj7#c.d7 : w apply 6d5y ! loss4 ,9 s*
  a case1 ! capital loss w 2 susp5d$ & w
  n 2 availa# 6! transf]or until ! "t t
  is immly 2f ! e>lie/ (! ev5ts li/$ 9
  subp>agraphs #dj7#c.d77b77;i7 to 7;v74




                                     #ec
          ,rollov]s ( ,capital       e#i
        ,prop]ty 7p>agraph #bf7
    
#bf4 ,9 circum/.es ": a corpor,n has
  acquir$1 on a rollov] basis "u
  subsec;n #he7#a71 prop]ty t 0 non-
  deprecia# capital prop]ty (a 3troll+
  %>ehold] or ( an a6iliat$ corpor,n1 !
  ,,ccra w g5],y a3ept t ! nature (!
  prop]ty has n *ang$ solely 2c !
  corpor,n resold ! prop]ty )9 a
  relatively %ort p]iod ( "t foll[+ !
  rollov]4

       ,taxa# ,canadian ,prop]ty
             7p>agraph #bg7
    
#bg4 ,": a taxpay] transf]s taxa#
  ,canadian prop]ty 6a corpor,n "u
  subsec;n #he7#a71 all ! %>es (!
  corpor,n rcvd 0! taxpay] z 3sid],n =!
  transf] >e deem$ 6be taxa# ,canadian
  prop]ty pursuant 6p>agraph
  #he7#a77;i74
                                     #ed
          ,3tribu;n ( ,capital       f#i
             7p>agraph #bh7
    
#bh4 ,": subsec;n #he7#a7 applies 6a
  transf] ( prop]ty : results 9 a
  3tribu;n ( capital 6! transf]ee
  corpor,n1 no adju/;t 6! adju/$ co/
  base ( any %>es ( t corpor,n is
  p]mitt$ "u p>agraph #ec7#a77c74 ,=
  example1 ": eligi# prop]ty t has a
  fair m>ket value equal 64#ajj is
  transf]r$ at an agre$ am.t ( 4#ajj 9
  ex*ange = "o pref]r$ %>e
-------------------------------------#aj
  )a pd-up capital &a redemp;n am.t (
  4#aj1 ! 4#ij di6];e is n a 3tribu;n (
  capital t c 2 a4$ 6! adju/$ co/ base
  (! pref]r$ %>e4

       ,reduc;n ( ,pd-up ,capital
             7p>agraph #bi7
    
#bi4 ,subsec;n #he7#b.a7 is an anti-
  avoid.e rule t is 9t5d$ 6prev5t !
  removal ( taxa# corporate          #ee
             ,,it-#bia;,r#c         a#aj
  surpluses z a tax-free return (
  capital 9 circum/.es ": sec;ns #hd.a &
  #bab.a d n apply4 7,see ! curr5t v].n
  ( ,,it-#dhi1 ,non-,>m's ,l5g? ,sale (
  ,%>es 6a ,corpor,n1 =a 4cus.n ( sec;ns
  #hd.a & #bab.a47 ,subsec;n #he7#b.a7
  applies ": prop]ty is transf]r$ 6a
  corpor,n pursuant 6subsec;n #he7#a7 or
  7#b7 &! 9cr1se 9 ! pd-up capital (!
  issu$ %>es (! corpor,n z a result (!
  transf] 7g5],y an am.t equal 6! pd-up
  capital (! %>e 3sid],n7 exce$s ! co/
  6! corpor,n (! prop]ty less ! fair
  m>ket value ( any non-%>e 3sid],n4 ,9
  any s* case1 p>agraph #he7#b.a77a7
  requires ! pd-up capital (! %>es (!
  corpor,n 6be reduc$ 0! am.t (! excess4
  ,! pd-up capital reduc;n is allocat$
  am;g ! classes ( %>es (! corpor,n bas$
  ^u ! 9cr1se 6_! respective /at$
  capitals "u ! relevant corporate law z
  a result (! transf]4

                                     #ef
             ,,it-#bia;,r#c         b#aj
  ,an example (! applic,n ( p>agraph
  #he7#b.a77a7 is z foll[s3

  ,assump;ns
  ,! prop]ty is o!r ?an %>es describ$ 9
  sec;n #hd.a or #bab.a4
,fair m>ket value ( prop]ty
  transf]r$ """""""""""""""""""""" 4#abe
,co/ ( prop]ty 6! transf]or """"""" #ajj
,agre$ ,am.t """""""""""""""""""""" #ajj
,/at$ capital = corporate
  purposes (! %>es issu$ """"""""""" #fj
,3sid],n
,fair m>ket value ( non-%>e
  3sid],n rcvd """""""""""""""""""" 4#fe
,fair m>ket value ( %>e
  3sid],n issu$ """""""""""""""""""" #fj
,total ,3sid],n """""""""""""""""" 4#abe

  ,pursuant 6p>agraph #he7#b.a77a7 !
  decr1se 9 ! pd-up capital >is+ f !
  transac;n is 4#be 2+ ! am.t 0: !
  9cr1se 9 ! /at$ capital exce$s !
                                     #eg
             ,,it-#bia;,r#c         c#aj
  excess (! agre$ am.t ov] ! fair m>ket
  value (! non-%>e 3sid],n rcvd4

  ,! =mula 9 subsec;n #he7#b.a7 may
  yield anomal\s results ": ! prop]ty
  transf]r$ is %>es (! corpor,n xf z
  describ$ 9 #bj abv4 ,3sid] ! foll[+
  situ,n3

  ;,x1 an 9dividual1 [ns #e@3p (! issu$
  -mon %>es ( ,opco hav+ a co/ am.t &
  pd-up capital ( 4#ajj1jjj &a fair
  m>ket value ( 4#fjj1jjj4 ,9 ord]
  6r1lize a capital ga9 & make use (!
  deduc;n availa# "u subsec;n
  #aaj.f7#b.a71 ;,x transf]s ! -mon %>es
  ( ,opco 6,opco 9 return = pref]r$ %>es
  ( ,opco hav+ a fair m>ket value (
  4#fjj1jjj4 ;,x & ,opco elect "u
  subsec;n #he7#a7 6transf] ! %>es at an
  agre$ am.t ( 4#fjj1jjj4 ,s9ce ;,x d1ls
  at >m's l5g? ) ,opco1 ! corporate law
  ( mo/ jurisdic;ns w require ,opco 6add
  6! /at$ capital (! pref]r$ %>es    #eh
             ,,it-#bia;,r#c         d#aj
  issu$ 6;,x an am.t equal 6! fair m>ket
  value (! 3sid],n rcvd = _! issue1 i4e4
  4#fjj1jjj 2+ ! fair m>ket value (
  ;,x's -mon %>es ( ,opco4 ,s9ce !
  9cr1se 9 ! pd-up capital (! issu$ %>es
  ( ,opco z a result (! transf] does n
  exce$ ! co/ 6,opco (! -mon %>es less !
  fair m>ket value ( any non-%>e
  3sid],n1 subsec;n #he7#b.a7 w n apply
  6reduce ! pd-up capital (! pref]r$
  %>es issu$ 6;,x4 ,3sequ5tly1 z not$ 9
  p>agraph #bj1 0virtue ( subsec;n
  #hd7#a7#a1 ;,x w 2 deem$ 6h rcvd a
  divid5d ( 4#ejj1jjj4

      ,deem$ ,capital ,co/ ,all[.e
           7p>agraphs #cj-ca7
    
#cj4 ,": ! rules 9 subsec;n #he7#a7 or
  7#b7 h appli$ 6a 4posi;n ( deprecia#
  prop]ty &! capital co/ 6! transf]or
  exce$s ! transf]or's proce$s (
  4posi;n1 subsec;n #he7#e7 applies =!
  purposes ( sec;ns #ac & #bj &      #ei
             ,,it-#bia;,r#c         e#aj
  any regul,ns made "u p>agraph
  #bj7#a77a7 6deem
  7a7 t ! capital co/ (! prop]ty 6!
    transf]ee is ! am.t t 0 ! capital
    co/ 6! transf]or1 &
  7b7 t ! excess has previ\sly be5 all[$
    6! transf]ee z capital co/ all[.e4
  
  ,! purpose ( ? rule is 65sure t !
  transf]ee w 2 lia# = any recapture (
  capital co/ all[.e t mi<t >ise on a
  subsequ5t 4posi;n (! prop]ty4

  ,": p>agraph #ac7#g77e7 has appli$
  6reduce ! capital co/ (a deprecia#
  prop]ty acquir$ 0a taxpay] 9 a non-
  >m's l5g? transac;n & ? deprecia#
  prop]ty is subsequ5tly transf]r$ 6a
  corpor,n "u subsec;n #he7#a71 x is !
  ,,ccra's view t x is ! capital co/ (!
  deprecia# prop]ty 6! transf]or z
  det]m9$ "u p>agraph #ac7#g77e7 t w 2
  relevant =! purpose ( det]m9+ !
                                     #fj
             ,,it-#bia;,r#c         f#aj
  corpor,n's capital co/ "u subsec;n
  #he7#e74
#ca4 ,new subsec;n #he7#e.a7 provides a
  simil> rule ": an appr5tice me*anic
  has1 af #bjja1 transf]r$ tools 9
  respect ( : a deduc;n has be5 claim$
  "u p>agraph #h7#a77r7 6a corpor,n "u
  subsec;n #he7#a74 ,": s* tools >e
  deprecia# prop]ty (! corpor,n &! co/
  (! prop]ty 6! transf]or has be5 reduc$
  "u subsec;n #h7#g71 subsec;n #he7#e.a7
  w apply 6deem ! capital co/ (! tools
  6! corpor,n 6be an am.t equal 6!
  orig9al co/ (! tools 6! transf]or4 ,!
  am.t 0: ! co/ (! tools has be5 reduc$
  "u subsec;n #h7#g7 is 3sid]$ 6h be5
  previ\sly claim$ 0! corpor,n z capital
  co/ all[.e4 ,"!=e1 ! corpor,n may 2
  subject 6recapture = ? am.t on a
  subsequ5t 4posi;n (! tools4



                                     #fa
         ,subsequ5t ,4posi;ns (      #aa
       ,eligi# ,capital ,prop]ty
             7p>agraph #cb7
    
#cb4 ,p>agraph #he7#a77d4#a7 applies ":
  a taxpay] has 4pos$ ( eligi# capital
  prop]ty 6a corpor,n &! corpor,n
  subsequ5tly 4poses (! eligi# capital
  prop]ty4 ,! p>agraph applies 6adju/ !
  am.t 6be 9clud$ 9 -put+ ! corpor,n's
  9come "u p>agraph #ad7#a77b7 6a3.t =!
  *ange 9 ! rate ( 9come 9clu.n &
  exp5diture deduc;n f #a ov] 
  6#c ov] #d4 ,x does ? 0a4+ an am.t 6t
  o!rwise det]m9$ = ;,q 9 ! def9i;n
  8cumulative eligi# capital0 9 subsec;n
  #ad7#e74 ,! v>ia# ;,q g5],y repres5ts
  ! di6];e 2t deduc;ns claim$ = eligi#
  capital prop]ty "u p>agraph #bj7#a77b7
  & ga9s f prior 4posi;ns ( eligi#
  capital prop]ty 0! taxpay] =! p]iod 2f
  ! taxpay]'s adju/;t "t 7i4e4 ! "t ": !
  9clu.n rate = eligi# capital prop]ty
  9cr1s$ f #a ov] #b 6#c ov] #d74 ,=
  non-corporate taxpay]s ! adju/;t   #fb
             ,,it-#bia;,r#c         a#aa
  "t is immly af ! />t (! taxpay]'s
  fiscal p]iod -m5c+ af #aihg4 ,= mo/
  corpor,ns ! adju/;t "t is immly af !
  />t ( xs f/ tax,n ye> -m5c+ af ,june
  #cj1 #aihh4 ,! am.t 6be a4$ 6v>ia# ;,q
  "u p>agraph #he7#a77d4#a7 is det]m9$
  0! =mula

  ;,a multipli$ 0;,b divid$ 0;,c m9us
  #b7;,d m9us ;,e7

  ":

  ;,a is ! am.t1 if any1 det]m9$ = ;,q 9
    ! def9i;n 8cumulative eligi#
    capital0 9 subsec;n #ad7#e7 =!
    taxpay]'s busi;s immly 2f ! "t (!
    4posi;n1
  ;,b is ! fair m>ket value immly 2f !
    "t ( 4posi;n (! eligi# capital
    prop]ty 4pos$ ( 6! corpor,n 0!
    taxpay]1
  ;,c is ! fair m>ket value immly 2f !
    "t ( 4posi;n ( all eligi#        #fc
             ,,it-#bia;,r#c         b#aa
    capital prop]ty (! taxpay] =!
    busi;s1
  ;,d is ! am.t1 if any1 t wd 2 9clud$
    "u subsec;n #ad7#a7 9 -put+ !
    taxpay]'s 9come z a result (!
    4posi;n if ! values det]m9$ = ;,c &
    ;,d 9 p>agraph #ad7#a77b7 7 z]o1 &
  ;,e is ! am.t1 if any1 t wd 2 9clud$
    "u subsec;n #ad7#a7 9 -put+ !
    taxpay]'s 9come z a result (!
    4posi;n if ! value det]m9$ = ;,d 9
    p>agraph #ad7#a77b7 7 z]o4
  
,note #b3
  ,on ,decemb] #bj1 #bjjb1 ! ,m9i/] (
  ,f9.e rel1s$ ,legislative ,proposals &
  ,explanatory ,notes ,relat+ 6,9come
  ,tax1 a package ( draft te*nical
  am5d;ts 6! ,9come ,tax ,act4 ,"o (!
  proposals is 6am5d p>agraph
  #he7#a77d4#a7 & 6add new p>agraphs
  #he7#a77d4#aa7 & 7d4#ab7 6revise !
  mann] 9 : ! adju/;t "u p>agraph
  #he7#a77d4#a7 is det]m9$4 ,if      #fd
             ,,it-#bia;,r#c         c#aa
  5act$ z propos$1 ^! am5d;ts w apply
  64posi;ns af ,decemb] #bj1 #bjjb4

         ,anti-,avoid.e ,rules
           7p>agraphs #cc-cd7
    
#cc4 ,subsec;n #fi7#aa7 is an anti-
  avoid.e provi.n t may apply1 9 c]ta9
  circum/.es1 6d5y a tax-def]r$ transf]
  "u subsec;n #he7#a74 ,": x applies1 !
  transf]or w 2 deem$ 6h 4pos$ (!
  prop]ty = proce$s equal 6xs fair m>ket
  value at t "t4 ,subsec;n #fi7#aa7 w
  apply ": z "p (a s]ies ( transac;ns a
  taxpay] 4poses ( prop]ty on a tax-
  def]r$ basis & x may r1sonably 2
  3sid]$ t "o (! ma9 purposes (! s]ies
  is 6obta9 ! b5efit (a tax deduc;n or
  o!r 5title;t 79clud+ tax exempt /atus7
  : is availa# 6a p]son :o is n a6iliat$
  )! taxpay] 7see p>agraph #bb7 9
  respect (a subsequ5t 4posi;n (!
  prop]ty4 ,= purposes ( subsec;n
  #fi7#aa71 ! a6iliat$ p]son rules   #fe
             ,,it-#bia;,r#c         d#aa
  >e 6be r1d )\t ! ext5d$ def9i;n (
  3trol f.d 9 subsec;n #bef7#e.a74 ,9
  o!r ^ws1 only de jure 3trol is 3sid]$4
#cd4 ,! curr5t v].n ( ,9=m,n ,circul>
  #hh-b1 ,g5]al ,anti-,avoid.e ,rule1 &
  ,supple;t #a "!to al 4cuss a numb] (
  examples t illu/rate ! use ( subsec;n
  #he7#a7 & -;ts on ! applic,n (
  subsec;n #bde7#b7 "!to4 ,^! examples
  9clude ,divisive ,reorganiz,ns
  7,butt]flies71 ,3solid,n ( ,pr(its &
  ,losses 9 a ,corporate ,gr\p1 ,e/ate
  ,freezes1 ,9corpor,n (a
  ,proprietor%ip1 ,"p ,,iv ,tax on
  ,taxa# ,divid5ds ,rcvd1 ,transf] ( ,l&
  ,9v5tory1 ,cry/alliz+ ,capital ,ga9s
  ,deduc;n & ,9cr1se ( ,co/ ( ,prop]ty
  ,acquir$ on a ,w9d+-,up (a ,corpor,n4

         ,adm9i/rative ,matt]s
           7p>agraphs #ce-cg7
    
#ce4 ,"o (! require;ts t m/ 2 met =
  sec;n #he 6apply 6a transf] (      #ff
             ,,it-#bia;,r#c         e#aa
  prop]ty 6a corpor,n is t ! transf]or
  rcvs 3sid],n t 9cludes at l1/ "o %>e
  (! capital /ock (! corpor,n4 ,x is !
  practice (! ,,ccra 6a3ept an elec;n "u
  subsec;n #he7#a7 ": ! %>es 6be issu$ z
  3sid],n =! transf]r$ prop]ty h n be5
  leg,y au?oriz$ "u ! >ticles (!
  corpor,n at ! "t (! transf] provid$ t
  all (! foll[+ 3di;ns >e satisfi$3
  7a7 "! is an agree;t 2t ! transf]or &!
    transf]ee : requires1 am;g o!r ?+s1
    t ! transf]ee issue ! requir$ %>es2
  7b7 ! transf]ee immly c>ries \ ! nec
    /eps 6au?orize ! issu.e (! %>es1 t
    is x files supple;t>y lrs pat5t or
    >ticles ( am5d;t1 z ! case may be2
  7c7 once ! nec am5d;ts 6! corpor,n's
    3/itut+ docu;ts >e made1 ! transf]ee
    corpor,n issues ! %>es )\t delay4
  
  ,if = any r1son ! transf]ee corpor,n
  does n obta91 "u ! applica# corporate
  legisl,n1 ! nec au?oriz,n =! issu.e (!
                                     #fg
             ,,it-#bia;,r#c         f#aa
  %>es1 ! elec;n "u subsec;n #he7#a7 w 2
  3sid]$ 6be 9valid4
-------------------------------------#ab
#cf4 ,o3a.n,y1 foll[+ a transf] (
  prop]ty "u subsec;n #he7#a71 !
  corporate transf]or or ! transf]ee may
  2 amalgamat$ ) ano!r corpor,n or
  liquidat$4 ,": ! corpor,n has be5
  amalgamat$ &! relevant corporate
  legisl,n provides t ! amalgamat$
  corpor,n is a 3t9u,n ( xs pr$ecessors1
  a valid subsec;n #he7#a7 elec;n may 2
  fil$ 0! amalgamat$ corpor,n on 2half (
  xs pr$ecessors4 ,h["e1 ": ! corpor,n
  has be5 liquidat$1 ! corpor,n has no
  legal exi/;e foll[+ xs 4solu;n4
  ,3sequ5tly1 any elec;ns m/ 2 fil$ 2f !
  corpor,n is =m,y 4solv$4
#cg4 ,see ! curr5t v].n ( ,9=m,n
  ,circul> #gf-ai1 ,transf] ( ,prop]ty
  6a ,corpor,n "u ,sec;n #he1 = 9=m,n &
  guid.e 9 mak+ a valid elec;n4

                                     #fh
          ,explan,n ( ,*anges        #ac
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ 9t]pret,ns
(! ,,ccra4

           ,r1sons =! ,revi.n
    
  ,we h revis$ ? bullet9 prim>ily
6reflect am5d;ts 6sec;n #he (! ,act
result+ f ,s4,c4 #aiid1 c4 #h1 ,s4,c4
#aiid1 c4 #ba1 ,s4,c4 #aiie1 c4 #c1
,s4,c4 #aiie1 c4 #ba1 ,s4,c4 #aiig1 c4
#be1 ,s4,c4 #aiih1 c4 #ai1 ,s4,c4 #bjja1
c4 #ag & ,s4,c4 #bjjb1 c4 #i4

      ,legislative & ,o!r ,*anges
    
  ,! ,summ>y has be5 revis$ 6elim9ate !
/ate;t t 8eligi# prop]ty0 9cludes    #fi
             ,,it-#bia;,r#c         a#ac
capital prop]ty only if [n$ 0a resid5t (
,canada4
  ,p>agraph #a has be5 revis$ 69clude !
require;t ( subsec;n #he7#a7 t !
transf]ee 2 a taxa# ,canadian corpor,n4
,x al reflects ! rep1l ( subsec;n
#he7#e.a7 relat+ 6! transf] (a loss
prop]ty & xs replace;t 0subsec;n
#ac7#ba.b7 z 5act$ 0,s4,c4 #aiih1 c4#ai
& 6cl>ify t ! require;t t subsec;n
#ac7#ba.b7 n apply is only relevant ": !
prop]ty transf]r$ is deprecia# prop]ty
(a prescrib$ class4
  ,p>agraph #d describes 8eligi#
prop]ty0 z def9$ 9 subsec;n #he7#a.a7 &
has be5 revis$ 6reflect legislative
am5d;ts 6p>agraphs #he7#a.a77b71 7g7 &
7g4#a74 ,x has al be5 revis$ 6cl>ify t
a3.ts receiva# (a ca% basis busi;s >e n
eligi# prop]ty1 69clude a ref];e 6!
curr5t v].n ( ,,it-#agf & ,,it-#djc &
6describe ! ,octob] #aa1 #bjjb1 ,notice
( ,ways & ,m1ns ,mo;n 6,am5d ! ,9come
,tax ,act1 : proposes 6add new       #gj
             ,,it-#bia;,r#c         b#ac
subp>agraph #he7#a77g77ii4#a7 6exclude f
eligi# prop]ty1 =! purposes ( subsec;n
#he7#a71 prop]ty 6: ! propos$ m>k-to-
m>ket tax,n regime = "picipat+ 9t]e/s 9
=eign 9ve/;t 5tities "u propos$ subsec;n
#id.b7#d7 applies4 ,? proposal1 if
5act$1 w 2 e6ective = tax,n ye>s t 2g9
af #bjjb4
  ,p>agraph #e has be5 revis$ 6elim9ate
\-dat$ 9=m,n t is no l;g] relevant &
69clude a ref];e 6! curr5t v].ns ( ,,it-
#dbg & ,,it-#dcc4
  ,new p>agraph #g has be5 a4$ 6expla9 !
anti-avoid.e rule f.d 9 subsec;n
#he7#a.aa7 : 0 5act$ 0,s4,c4 #bjja1 c4
#ag4
  ,p>agraph #h 7=m]ly p>agraph #g7 has
be5 revis$ 6cl>ify ! circum/.es ": a
sec;n #bb elec;n may 2 made =! sale (
a3.ts receiva# z "p (! sale (a busi;s 6a
corpor,n4
  ,p>agraph #i 7=m]ly p>agraph #h7 has
be5 revis$ 6delete ! ref];e t ! -;ts "!9
                                     #ga
             ,,it-#bia;,r#c         c#ac
apply 64posi;ns o3urr+ af #aihi &
6improve cl>;y4
  ,p>agraph #aj 7=m]ly p>agraph #i7 has
be5 revis$ 6delete ! ref];e 6subsec;n
#fi7#aa74 ,exp&$ -;ts relat+ 6subsec;n
#fi7#aa7 c n[ 2 f.d 9 new p>agraph #cc4
,? p>agraph has al be5 revis$ 6improve
cl>;y1 6reflect legislative am5d;ts 6!
types ( prop]ty t c 2 transf]r$ "u
p>agraph #he7#a77c4#a7 z describ$ 9
p>agraph #d abv1 6elim9ate 9=m,n t is no
l;g] relevant & 6reflect ! rep1l (
subsec;ns #he7#d7 & #he7#e.a7 & _!
replace;t 0subp>agraph #dj7#b77g77;i7 &
subsec;ns #dj7#c.d7 & #ac7#ba.b74
  ,=m] p>agraphs #aj1 #aa1 #ab1 #ac &
#ad h be5 renumb]$ z p>agraphs #aa1 #ab1
#ac1 #ad & #ae4 ,cross-ref]5c+ has be5
revis$ 6reflect ? renumb]+4 ,9 a4i;n1 !
ref];e 9 p>agraph #aa 6subsec;n #hd7#a7
has be5 *ang$ 6sec;n #hd 6be 3si/5t )!
legisl,n1 p>agraph #ab has be5 revis$
69clude ! *anges 6! example t 7
previ\sly 9 p>agraph #ai1 :ile       #gb
             ,,it-#bia;,r#c         d#ac
p>agraph #ad has be5 revis$ 6reflect !
rep1l ( subsec;n #he7#e.a7 & xs
replace;t 0subsec;n #ac7#ba.b7 z 5act$
0,s4,c4 #aiih1 c4#ai4
  ,p>agraph #af 7=m]ly p>agraph #ae7 has
be5 revis$ 6expla9 an adm9i/rative
posi;n t is availa# =! transf] (
deprecia# prop]ty or eligi# capital
prop]ty 9 c]ta9 divisive reorganiz,ns4
,x has al be5 revis$ 6reflect ! rep1l (
subsec;n #he7#e.a7 & xs replace;t
0subsec;n #ac7#ba.b7 z 5act$ 0,s4,c4
#aiih1 c4#ai4
  ,p>agraph #ag is a new p>agraph t
describes ! ,,ccra's revis$ posi;n on
non-%>e 3sid],n rcvd =! purposes (
p>agraph #he7#a77b74 ,? revis$ posi;n
applies = transf]s af #bjjj & is bas$ 9
"p on ! deci.ns (! c\rts 9 ,h>o ,pacific
,5t]prises ,ltd4 v4 ,! ,que5 7#ij ,,dtc
#fehc2 ,7#aiij7' #b ,,ctc #dic7 & ,,mds
,h1l? ,gr\p ,limit$ v4 ,! ,que5 7#ig
,,dtc #ejji2 ,7#aiig7' #a ,,ctc #aaa74
                                     #gc
             ,,it-#bia;,r#c         e#ac
  ,p>agraph #ah 7=m]ly #af7 has be5
revis$ 63solidate ! -;ts t 7 =m]ly 9
p>agraphs #af1 #ag & #ah4 ,x has al be5
revis$ 69clude an explan,n (! expres.n
8:olly [n$ corpor,n0 z f.d 9 subsec;n
#he7#a.c74
  ,=m] p>agraph #ai has be5 delet$ z !
e6ect ( p>agraph #he7#a77e4#c7 has be5
4cuss$ 9 p>agraph #aj4
  ,p>agraph #ai 7=m]ly p>agraph #bj7 has
be5 revis$ 6describe ! am.ts prescrib$
"u subsec;n #gcjg7#a7 (! ,regul,ns =
c]ta9 pass5g] vehicles4
  ,p>agraph #bj is a new p>agraph t
4cusses ! transf] ( %>es (a corpor,n 6xf
"u subsec;n #he7#a74
-------------------------------------#ad
  ,p>agraph #ba has be5 revis$ 6exp& on
! mann] ( det]m9+ ! co/ (! 3sid],n rcvd
z det]m9$ "u p>agraphs #he7#a77f71 7g7 &
7h74
  ,p>agraph #bb is a new p>agraph t
4cusses ! 3cept ( 8a6iliat$ p]son0 z
def9$ 9 subsec;n #bea.a7#a74 ,!      #gd
             ,,it-#bia;,r#c         a#ad
3cept ( 8a6iliat$ p]son0 is relevant 6!
v>i\s /op-loss rules : apply foll[+ !
am5d;ts 5act$ 0,s4,c4 #aiih1 c4 #ai4
  ,p>agraph #bc 7=m]ly p>agraph #bb7 is
revis$ z a result (! rep1l ( subsec;n
#he7#e.a7 & xs replace;t 0new subsec;n
#ac7#ba.b74 ,new subsec;n #ac7#ba.b71 :
0 5act$ 0,s4,c4 #aiih1 c4 #ai1 w1 9
c]ta9 circum/.es1 d5y a rollov] "u
subsec;n #he7#a7 & d5y a t]m9al loss 6!
transf]or on ! transf] ( deprecia#
prop]ty 6a corpor,n t is an a6iliat$
p]son (! transf]or4
  ,p>agraph #bd is a new p>agraph t
describes ! /op-loss rule applica# 6!
4posi;n ( eligi# capital prop]ty 6a
corpor,n t is an a6iliat$ p]son (!
transf]or4 ,? /op-loss rule is f.d 9 new
subsec;n #ad7#ab7 : 0 5act$ 0,s4,c4
#aiih1 c4 #ai4
  ,p>agraph #be 7=m]ly p>agraph #bc7 has
be5 revis$ 6reflect ! rep1l ( subsec;n
#he7#d7 & xs replace;t 0! sup]ficial
loss rules & new subsec;n            #ge
             ,,it-#bia;,r#c         b#ad
#dj7#c.d7 z 5act$ 0,s4,c4 #aiih1 c4 #ai4
,": ^! rules apply1 !y d5y an imm
capital loss on ! transf] ( capital
prop]ty 6a corpor,n t is an a6iliat$
p]son (! transf]or4
  ,=m] p>agraph #bd has be5 delet$ &
-;ts on ! def9i;n ( 83troll$1 directly
or 9directly 9 any mann] :at"e0 h be5
9clud$ 9 new p>agraph #ba4
  ,p>agraph #bf is a new p>agraph :
reflects ! ,,ccra's posi;n z /at$ on
page #f ( ,9come ,tax ,te*nical ,news
,no4 #g4
  ,=m] p>agraphs #be & #bf h be5
renumb]$ z p>agraphs #bg & #bh4
  ,p>agraph #bi 7=m] p>agraph #bg7 has
be5 revis$ 6reflect an example ( ":
subsec;n #he7#b.a7 w n decr1se ! pd-up
capital )! result t a divid5d "u
subsec;n #hd7#a7#a w >ise4
  ,p>agraph #cj 7=m]ly p>agraph #bh7 has
be5 revis$ 6delete ! ref];e 6subsec;n
#he7#e.a7 t 0 rep1l$ 0,s4,c4 #aiih1 c4
#ai4 ,x has al be5 revis$ 6cl>ify    #gf
             ,,it-#bia;,r#c         c#ad
t ": p>agraph #ac7#g77e7 has appli$ =!
purposes ( det]m9+ ! transf]or's capital
co/ (a deprecia# prop]ty acquir$ 9 a
non->m's l5g? transac;n1 x is ? capital
co/ : w 2 relevant 9 ! applic,n (
subsec;n #he7#e7 6! transf]ee corpor,n4
  ,p>agraph #ca is a new p>agraph :
4cusses new subsec;n #he7#e.a7 : is
applica# ": an appr5tice me*anic has1 af
#bjja1 transf]r$ tools 6a corpor,n "u
subsec;n #he7#a74
  ,p>agraph #cb 7=m] #bi7 has be5 revis$
6cl>ify ! circum/.es 9 : p>agraph
#he7#a77d4#a7 w apply & 6reflect !
descrip;ns ( ;,d & ;,e 9 p>agraph
#he7#a77d4#a7 z am5d$ 0,s4,c4 #bjja1 c4
#ag4 ,p>agraph #he7#a77d4#a7 is 9t5d$
6prev5t an ov]/ate;t (! am.t 6be 9clud$
0virtue ( p>agraph #ad7#a77b7 9 -put+ !
9come (! corpor,n 9 a tax,n ye> z a
result (a 4posi;n 0! corpor,n ( eligi#
capital prop]ty subsequ5t 6! transf]4 ,a
note has al be5 9clud$ 3c]n+ ! propos$
te*nical am5d;ts : 7 rel1s$ on       #gg
             ,,it-#bia;,r#c         d#ad
,decemb] #bj1 #bjjb1 z ,legislative
,proposals & ,explanatory ,notes ,relat+
6,9come ,tax4
  ,p>agraph #cc is a new p>agraph t a4s
"s rem>ks 3c]n+ ! anti-avoid.e rule 9
subsec;n #fi7#aa7
  ,p>agraph #cd 7=m]ly p>agraph #cj7 has
be5 revis$ 69clude a ref];e 6relevant
examples describ$ 9 ,supple;t #a 6,9=m,n
,circul> #hh-b4
  ,p>agraph #ce is a new p>agraph t has
be5 a4$ 6describe ! ,,ccra's practice ":
! %>es 6be issu$ z 3sid],n =! transf] h
n be5 au?oriz$ at ! "t (! transf]4 ,?
practice is curr5tly describ$ on page #d
( ,9come ,tax ,te*nical ,news ,no4 #c4
  ,p>agraph #cf is a new p>agraph t has
be5 a4$ 6describe ! ,,ccra's views on !
fil+ ( elec;ns ": a "py 6! rollov] has
"ug"o an amalgam,n or has be5 liquidat$4
  ,p>agraph #cg 7=m]ly p>agraph #ca7 has
be5 renumb]$4
  ,=m] p>agraph #cb has be5 delet$ z !
-;ts 7 \tside ! scope (! bullet94    #gh
             ,,it-#bia;,r#c         e#ad
  ,"?\t ! bullet9 we h revis$ "s (! ^w+
9 ord] 6improve r1dabil;y )\t alt]+ !
sub/.e4




















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