Principal Issues: 1) Whether each of the two dispositions which are part of the re-organization of the structure to replace the existing Finance Trust with a new trust will be a "qualifying disposition" as described in subsection 107.4(1) of the Act? 2) Whether GAAR will apply to re-determine the tax consequences of those two dispositions?
Position: 1) Yes. 2) No.
Reasons: 1) All of the requirements in 107.4(1) are met. 2) The use of such qualifying dispositions to re-organize this structure is analogous to rulings given on many occasions and the motivation for the change is for US tax purposes.