30 October 2002 Internal T.I. 2002-0134077 F - ATTRIBUTION DES GAINS EN CAPITAL -- summary under Subsection 74.5(6)

Two individuals transferred the shares they held of a particular company to their respective holding companies which, in turn, each disposed of a portion of those shares to the individuals’ respective spouses in consideration for non-interest-bearing notes. Following an exchange of such shares for shares of another class, and an amalgamation of the company, the spouses disposed of the shares of Amalco at a gain. After finding that s. 74.2(1) applied, on the basis that there was an indirect transfer of the shares by the individuals to their spouses, the Directorate went on to indicate that this result was reinforced by s. 74.5(6).