CRA confirms that it regards the granting of an emphyteusis as a part disposition of property rather than as a lease

CRA has confirmed its position in 2013-0487791E5 F, where it indicated (reversing 2012-0472101E5 F) that it now considered that the entering into of an emphyteutic lease represents a part disposition of property rather than something analogous to the entering into of a common law lease. Therefore, any "rents" receivable must be recognized as proceeds of disposition at the time of grant rather than as amounts which can be recognized over time as they become receivable (although a s. 40(1) reserve may be available).

Neal Armstrong. Summary of 18 November 2021 External T.I. 2021-0917841E5 F under s. 248(1) – disposition.