Income Tax Technical News, No. 4, 20 February 1995

Most residential condominium corporations will qualify as non-profit organizations because they are normally operated "for any other purpose except profit".

Notwithstanding that the decision in the Davis case (94 DTC 1934, [1994] 2 CTC 2033) was not appealed by RC, it does not interpret s. 160 as containing a solvency test (i.e., the transferor of property does not have to be insolvent for the provision to be operable), and RC further is of the view that dividends are not normally issued for consideration.

When the pro rata method in Article XIII, para. 9 of the U.S. Convention is used to reduce the amount of the capital gain, the months before 1972 are never relevant in determining "the amount of the gain which is liable to tax" in Canada.