CRA replicates IT-492R in its Folio on relatedness/arm’s length
Virtually no substantive changes from IT-492R, dated 8 June 2004, were made in drafting the new Folio on "Related persons and dealing at arm’s length." It is doubtful that there is nothing to be learned from the last 10 years of jurisprudence on accommodation parties (9101-2310, Remai Estate, Livingston) or acting in concert (Petro-Canada, Alberta Printed, McMullen, Brouillette, Wagner), nor does the Folio discuss the occasionally mooted question of the time at which the presence or absence of an arm’s length relationship should be assessed (see Brown, Yelle, Deptuck, cf. Kiperchuk) or mention Lyrtech (s. 248(25) does not apply for s. 251(5)(b) purposes – which is consistent with the CRA position on shotguns and ROFRs in that s. 251(5)(b) was read restrictively).
Neal Armstrong. Summaries of S1-F5-C1: "Related persons and dealing at arm's length" 1 May 2014 under s. 251(1)(c) and s. 251(5)(b).