In confirming its position in IT-291R3, para. 35, CRA stated:
The Dale case concerned a transferee corporation that had issued shares that were not authorized in its articles of incorporation. It was several years after the property was transferred before the shares were properly issued. ... Bowman J. ruled that the term "consideration that includes shares", which appears in section 85, does not mean that the shares must be issued at the same time as the property transfer or in the same taxation year. ...
The Federal Court of Appeal upheld the decision by Bowman J. on this point (see Dale et al v. Canada, 97 DTC 5252).