Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
RE: Your memo of October 23, 1981
It is our opinion that in the situation which you described in your above-noted memorandum, the preference shares taken back as part of the consideration under a section 85 rollover would not be considered to be non-share consideration for the purpose of determining the transferor's proceeds of disposition.
Even though the preferred shares may have some of the attributes of debt, there is nothing in the legislation relating to section 85 which would enable us to deem something that is legally a share not to be a share.
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© Her Majesty the Queen in Right of Canada, 1981
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© Sa Majesté la Reine du Chef du Canada, 1981
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