The taxpayer lived with his spouse in Immovables A, but thereafter commenced to live separate and apart from her, but did not divorce from her, and instead lived in a conjugal relationship with another (a common-law partner) in Immovable B until his death. On his death, Immovable A and Immovable B were devised to his spouse and common-law partner.
In finding that s. 70(6)(a) applied to the deemed dispositions of Immovables A and B occurring as a consequence of the taxpayer’s death (assuming the other conditions were satisfied), the Directorate noted that it applied “on a property-by-property basis.”