CRA provides provincial GAAR rulings

A public company (Lossco) is transferring losses to a "Profitco" which is a wholly-owned indirect subsidiary of another public company (Bco) which is partially owned by Lossco.  Profitco effectively is receiving the losses for free, which means that the minority shareholders of Bco are receiving a free ride.

In addition to customary federal rulings including GAAR, CRA ruled that the provincial GAAR for any province with which there is a tax collection agreement will not be applied to "determine" (i.e., redetermine) tax consequences addressed in the federal rulings.

Neal Armstrong. Summaries of 2013 Ruling 2013-0504301R3 under s. 111(1)(a) and s. 245(4).