GAAR was applied by CRA to the avoidance of s. 93(2) through continuing an LLC previously used in a tower structure into Canada

An LLC had been used in a classic tower structure that then was unwound.  The Rulings Directorate noted that CRA had applied the general anti-avoidance rule to transactions which had sought to avoid the application of the stop-loss rule in s. 93(2) to a capital loss realized on the winding-up of the LLC (as part of the dismantling of the tower structure) by first continuing the LLC under the CBCA.

Turning to the transactions now in issue, the Directorate indicated that "subsection 248(5) contemplates rules of interpretation which establish the scope of the concept of substituted property for purposes of the Act" – i.e., rather than merely being a deeming provision, s. 248(5) codifies the concept of substituted property for purposes of the Act?

Neal Armstrong.  Summary of 25 September 2013 Memorandum 2013-0476311I7 F ("93(2), 93(2.01) - Share substituted") under s. 93(2.01).