Four unrelated individuals each holding 25% of the common shares of a small business corporation, transfer their shares to a corporation (“Newco”) with which they are not affiliated, thereby sustaining a capital loss. CRA indicated that, assuming that each of individual did not have de facto control over Newco, the loss sustained by each would not be a "superficial loss," and would not be denied by s. 40(2)(g)(i). Regarding s. 245((2), CRA stated:
[T]o the extent that there are no transactions carried out in the context of the Particular Situation with a view to circumventing those specific legislative provisions, it would probably be reasonable to consider that the Transaction would not directly or indirectly result in an abuse of the application of the provisions of the Act read as a whole … .