CRA indicates that it no longer provides an administrative concession limiting the application of ETA s. 155(1)

CRA reportedly indicated in 1991 that, as an administrative concession, it would not apply ETA s. 155(1) (respecting certain transactions between non-arm’s length persons being deemed to occur at fair market value) to transactions between corporations without share capital that form part of a national religious organization.

CRA indicated that it now “has no administrative concession in place that limits the application of subsection 155(1),” and noted that after 1991, s. 155(2) was enacted to provides a detailed code for exceptions to the application of s. 155(1), so that:

For example, if a charity were to make a non-arm’s length supply of real property for no consideration that was exempt by way of section 5 of Part V.I of Schedule V to the ETA, subsection 155(1) would not apply to deem the supply to be made for consideration equal to the fair market value of the property.

Neal Armstrong. Summary of 28 February 2019 CBA Roundtable, Q.3 under ETA s. 155(2).