Foix – CRA reiterates that Foix overruled a more restrictive approach to s. 84(2) in some earlier cases (and restricts Geransky)

CRA provided detailed comments on Foix (where the FCA found that s. 84(2) applied to a particular hybrid sale transaction) in 10 October 2024 APFF Roundtable, Q.3. Now, in brief oral comments when a question about this case was repeated, CRA indicated:

• the reasons in Foix should be carefully considered in connection with any proposed hybrid sale (with exception of transactions identical to those in Geransky);
• the decision reinforces the broad scope of s. 84(2); and
• it represents a departure in some respects from the more restrictive view of s. 84(2) evident in some earlier cases.

Neal Armstrong. Summary of 3 December 2024 CTF Roundtable, Q.14 under s. 84(2).