CRA indicated that, following the repeal of s. 120.2(2), which allowed for a three-year carryback, there is no provision allowing an individual, who died in 2004, to recover the amount of AMT paid in 2003, given the low level of tax payable in 2004. CRA noted:
Section 127.55 was amended in 1988 to eliminate the AMT that could arise in a taxation year in which an individual died. This amendment was enacted to address the possibility that a significant AMT liability might arise from the capital gain resulting from the deemed disposition of all of an individual's property at death, which, in the view of the legislature, would have produced a questionable result in terms of tax policy. At the same time, subsection 120.2(2), which allowed the AMT to be carried back to the three taxation years preceding the year of an individual's death, was repealed as being too complex.