CRA reiterates that the ETA s. 167 is unavailable where a newly-formed Amalco immediately transfers its assets

Two registrants amalgamate to form AmalCo, which immediately thereafter sells all its assets to a registered third party. In finding that no ETA s. 167 election could be made for this sale, CRA indicated that the supplier (AmalCo) did not satisfy the s. 167 requirement that it have “established” the business (this was done by its predecessors, who were deemed separate persons) and by assumption it also did not satisfy the s. 167 requirement that it have “carried on” the business.

Neal Armstrong. Summary of 28 February 2019 CBA Roundtable, Q.24 under ETA s. 167(1).