2019 Ruling 2019-0822951R3 F - Post-mortem Hybrid Pipeline -- summary under Subsection 40(3.61)

Preliminarily to pipeline transactions, the CCPC that had been held by the deceased (ACo) will purchase for cancellation (in consideration for issuing a demand promissory note) a sufficient such number of its Class A common shares to result in a refund of its eligible refundable dividend tax on hand, or its non-eligible refundable dividend tax on hand, balances. The executors will carry back the resulting capital loss under s. 164(6), with s. 40(3.61) thereby precluding the application of the s. 40(3.6) stop loss rule.