Principal Issues: (i) Does subsection 73(3) require the taxpayer to be the individual undertaking the business of farming? (ii) Does subsection 69(11) apply?
Position: (i) No. Subsection 73(3) of the Act permits the transfer of property to a child of the taxpayer who was resident in Canada immediately before the transfer, and the property was, before the transfer, used principally in the business of farming in which the taxpayer, the taxpayer's spouse or any of the taxpayer's children was actively engaged on a regular and continuous basis (ii) Question of fact.
Reasons: (i) Literal interpretation of subsection 73(3) does not require the taxpayer to be the individual undertaking the business of farming. (ii) Where the "one of the main purposes" test has been met, subsection 69(11) will apply because parents and children are not affiliated under subsection 251.1 of the Act.