When asked to comment on post-mortem pipelines and s. 164(6) loss carryback plans in light of the amended version of GAAR, CRA referred to its statement in 2023-0987941I7 that it “does not consider the use of a pipeline transaction as a means to preserve the capital gain arising on the death of a shareholder while limiting double taxation on the subsequent distribution of Opco’s assets to be a … [GAAR] abuse” and went on to state:
As for the s. 164(6) loss carrybacks, the Directorate is not aware of any specific concerns relating to the potential application of the amended GAAR in circumstances involving the carryback of losses under s. 164(6), and has not provided any general guidance in this respect.