14 December 2000 Internal T.I. 2000-0034037 - safe income -- summary under Subsection 55(2)

The safe income on hand of a corporation, is not reduced by non-capital losses of a corporation within the group that is acquired by it, although the amount paid to acquire such loss company will reduce the safe income on hand attributable to its shares as the shares of the loss company disappear on the subsequent amalgamation.