In response to a question as to how the 50%-derived-from-real-property test should be applied where the non-resident disposes of shares of Parent which holds Subsidiary, CRA stated:
a determination will need to be made of the proportion of the total gross assets of the Subsidiary that comprises of real or immovable property situated in Canada (and certain other property....). Under the current wording of the "taxable Canadian property" definition, an amount equal to that same proportion of the FMV of the shares of the Subsidiary will be considered real or immovable property situated in Canada of the Parent in the determination of whether the shares of the Parent derive their value principally from real or immovable property situated in Canada.
CRA then sumarized the 27 August 2010 amendment that would prevent an indirect "look through" approach where shares of Subsidiary were not themselves taxable Canadian property.