It might be “market” for tax loss reps in acquisitions of losscos to have a term of 6 or 7 years

Anecdotal evidence and limited publicly available materials suggest that arm’s-length purchasers of losscos are paying from $0.03 to $0.10 per dollar of non-capital losses, so that they are heavily discounting the anticipated post-acquisition value of the losses.

Given that statute-barring does not commence to run until a loss is utilized (so that a tax-balance rep open for the normal reassessment period is effectively open-ended), “it is not unusual for the parties to agree to an explicit survival period in respect of representations relating to tax loss balances; a survey of the limited public disclosure available indicates a range of 6-7 years from closing of the acquisition.”

Neal Armstrong. Summary of Anu Nijhawan, "When is 'Loss Trading' Permissible: A Purposive Analysis of Subsection 111(5)," draft 2015 CTF Annual Conference paper under s. 11(5)(a).