Clearwater Seafood - The public company successor of an income fund could not continue an existing income tax appeal

The Tax Court found that when the sub trust of an income fund was wound-up pursuant to s. 88.1(2) as part of a plan of arrangement for converting the income fund into a public corporation, the public corporation did not have the right to be named as the replacement appellant in a previously-launched appeal to the Tax Court - even though it had assumed all of the trust's liabilities.  This raises a dilemma, as in order for roll-over treatment to apply, the trust must "cease to exist" immediately after the conversion.

The successor public company may face an assessment under s. 160(1).  However, D'Arcy J. declined to decide that the sub trust had lost its standing to continue its appeal in light inter alia of the 460354 decision.

Scott Armstrong.  See summary of Clearwater Seafood Holdings Trust v. The Queen, 2012 TCC 186 under s. 169(1).