CRA confirms that outside basis is not lost on a horizontal short-form amalgamation

CRA noted that its position in S4-F7-C1, para. 1.74 that

Where shares of a predecessor corporation are cancelled for no consideration pursuant to a short-form horizontal amalgamation, the adjusted cost base of such cancelled shares to the shareholder will be added to the cost of the common shares of the new corporation which are deemed to have been received by the shareholder on the amalgamation under subsection 87(1.1).

is based on a 1999 Technical Interpretation (9830205).

Neal Armstrong. Summary of 15 August 2018 Internal T.I. 2018-0749931I7 under s. 87(4).