P. Clemens (613) 993-6201
September 6, 1984
Dear Sirs:
Re: Application of Subsection 85(1.1) after February 15, 1984
This is in reply to your request for our opinion on the application of subsection 85(1.1) of the Income Tax Act to the transfer of a resource property to a new corporation pursuant to subsection 85(1), followed by the wind-up of the new corporation into its parent utilizing subsection 88(1). As discussed with you on September 5, 1984, we are unable to confirm that subsection 35(1.1) would not apply in such circumstances, although we would be prepared to consider ruling on this question on a case by case basis where all the facts are known.
Yours truly,
Chief Mines, Oil & Forest Industries Section Specialty Corporations Rulings Division Corporate Rulings Directorate Legislation Branch