CRA rejects the analysis in Agnico-Eagle

CRA rejected the suggestion that Agnico-Eagle could support the realization of a capital loss under s. 39(2) where a U.S.-dollar denominated debenture is converted into shares, stating that a loss from appreciation in the shares of the issuer is not an FX loss described in s. 39(2) – and also indicated that if a similar case arose, it would consider that s. 143.3(3)(b) also denied a loss respecting the share appreciation.