CRA declined to provide further guidance on its interpretation of the GAAR following the introduction of s. 245(4.1), and reiterated some prior positions, principally:
- As indicated in 2024-1008251I7, it is generally of the view that the positions taken in IC88-2 and IC88-2S1 should remain unchanged under the current version of the GAAR; and there are currently no plans to issue a new version of IC88-2.
- As stated in 2023-0987941I7 favourable advance income tax rulings will continue to be issued in respect of pipeline-type post-mortem transactions that meet the conditions accepted by the CRA, but that rulings will not be issued in respect of plans similar to the example provided in the Explanatory Notes re surplus stripping (Example Jane) or similar plans where an individual shareholder of a corporation proposes to undertake non-arm's length transactions, one of the principal purposes of which is to establish an ACB in order to extract retained earnings.
- As stated in 2024-1016011E5, it would generally not apply the current GAAR to transactions solely on the basis that such transactions are intended to crystallize capital gains in order to benefit from the capital gains inclusion rate applicable before June 25, 2024.