Upon the death of their father (Mr. X), Sons A and B received a devise of the farm that he had actively farmed until his death, but which was not farmed by them. Alternatively (in Scenario 2), Son A carried on the farming business for a number of years before Mr. X’s death. After summarizing the conditions in s. 70(9), CRA stated:
Provided that the conditions for the application of subsection 70(9) are satisfied, we are of the view that, in both Scenario 1 and Scenario 2, the transfer of Mr. X's farm property to his children on his death would be governed by the provisions of subsection 70(9.01).