27 May 2008 External T.I. 2008-0269441E5 F - Withdrawn Ruling Request -- summary under Subsection 245(4)

The 2005-0134731R3 transactions, accommodating “an intergenerational transfer of a family business,” would be abusive surplus stripping if applied to this case, which involved “a minority shareholder [who] is essentially transferring his interest in a corporation to his brother”. We are of the view that the series of proposed transactions submitted constitutes a mechanism to strip the corporation's surplus and that all the conditions for the application of the GAAR of the Act would be met.