For foreign mergers occurring after September 15, 2016, will CRA accept elections of the new corporation and disposing predecessor foreign corporation for the tax deferred treatment of dispositions under proposed s. 87(8.5) prior to enactment of the legislation?
CRA responded that its longstanding position is to encourage the taxpayers to file under the proposed legislation so that, for foreign mergers prior to the enactment of Bill C-63, it would accept joint written elections. Whatever information taxpayers think would be required to justify such a transaction should be provided.