CRA may accept a T2062 showing deemed s. 73(4.1) rollover proceeds

The s. 73(4.1) rollover applies to a gift by a German resident of her shares of a family farm corporation to her son. The shares likely are Treaty-protected on the basis that the corporation’s land is used in its farming business. However, if the son fails to give a timely notice of Treaty protection to CRA under s. 116(5.02) or the Treaty exemption is not apparent, CRA considers that s. 116 withholding technically would apply to the accrued gain on the property, so that the German resident would have to claim the rollover in her income tax return to get the tax back. However, CRA then stated:

Administratively however, in situations such as this one, the CRA may accept a T2062 which reported the proceeds of disposition in an amount equal to the adjusted cost base, and such determination would be made on a case-by-case basis.

Neal Armstrong. Summary of 17 February 2017 External T.I. 2015-0602781E5 under s. 116(4).