Principal Issues: Where a taxpayer dies intestate and applicable provincial law specifies the ratio concerning the division of the deceased's assets, does CRA accept such an allocation for purposes of subsection 248(8) of the Act?
Position: In general, yes.
Reasons: Provided property of a deceased taxpayer is distributed to the deceased's beneficiaries in accordance with the proportions specified under applicable provincial intestacy law, and there are no agreements between beneficiaries that in any way alter the proportions of property distributed, the CRA will consider the property to be distributed as a consequence of the death of a taxpayer, in accordance with subsection 248(8) of the Act.