Principales Questions: An individual disposes of shares of the capital stock of a corporation (Opco) in favour of a corporation (Holdco) affiliated with him. Opco is then wound up into Holdco. Whether the loss resulting from the disposition of the Opco shares by the individual is a superficial loss where (1) the corporation is wound up and dissolved within 30 days after the disposition, and (2) where the corporation is wound up but not dissolved within the 30 day period.
Position Adoptée: (1) To the extent that the Holdco shares that may be received by the individual are not substituted property, no. (2) To the extent that the Holdco shares are not substituted property, the winding-up meets the requirements mentioned in paragraph 5 of IT-126R2, and the loss is a true economic loss and not an artificial loss, no.
Raisons: (1) The law. (2) The law and administrative position set out in paragraphs 5 and 9 of IT-126R2.