Does CRA consider, similarly to Revenu Québec, that a transfer of an immovable for $1 can be a gift? After referring to s. 8.1 of the Interpretation Act, which indicated that the concept of gift in Quebec was governed by the Civil Code ("C.C.Q."), CRA stated (TaxInterpretations translation):
The C.C.Q. provides for several types of gifts, such as pure and simple gifts, indirect gifts, disguised gifts, remunerative gifts and gifts with a charge. All these gits may be gifts for the purposes of the ITA.
Thus, the determination of the nature of a particular transaction, as sale or gift, must be made on the basis of the genuine legal relations between the parties. In the absence of an express provision to the contrary in the ITA or a finding that the transaction is a sham, the genuine legal relations must be respected in tax matters.