1 December 1992 T.I. (Tax Window, No. 27, p. 9, ¶2319)

If one of the purposes of a series of transfers of a capital property within a related corporate group is to utilize non-capital losses of one of the corporations and if the vendor corporation has no intention of reacquiring the particular assets, then GAAR will not apply.

If one of the purposes of a series of transfers of a capital property within a related corporate group is to utilize non-capital losses of one of the corporations and if the vendor corporation has no intention of re-acquiring the particular assets, then GAAR will not apply.

Where one corporation within a corporate group transfers a capital property with an unrealized capital gain on a rollover basis to a second corporation within the group which, in turn, sells the property on a non-rollover basis to a third corporation, Revenue Canada's practice will be to accept the resulting gain as being a capital gain despite the short holding period irrespective whether the subsequent sale of the property was to a non-arm's length person or an arm's length person.