It was submitted that were two individuals (Mr. A nor Mr. B ) who are equal co-owners of two rental properties apply for partition and the court instead directs a sale of the two properties, that there is thereby a sale under statutory authority described in para. (d) of the definition of "proceeds of disposition" in ss. 54 and 13(21), so that the rollover in ss. 44(1) and 13(4) was available. In finding that the rollover was not available, CRA stated:
[S]ince neither Mr. A nor Mr. B can claim in this case to be able to "take" the other's property pursuant to the C.C.Q. - the court only being able to order the partition of the property or its sale - we believe that the proceeds of disposition resulting from an application for partition are neither compensation for property taken under statutory authority nor the amount of the sale price of the property sold to a person who has given notice of an intention to take it under statutory authority.