,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,4posi;ns--,abs;e ( ,3sid],n
,numb]3 ,,it-#dfj
,date3 ,octob] #f1 #aihj
,ref];e3 ,p>agraphs #ac7#ba77c7 & #ed7c7
  7al p>agraphs #ac7#ba77d7 & #ed7h77

#a4 ,a 4posi;n c g5],y 2 reg>d$ z an
  ev5t or transac;n ": posses.n1 3trol &
  all o!r aspects ( prop]ty [n]%ip >e
  rel9qui%$4 ,al? "! is usu,y a
  correspond+ acquisi;n (! prop]ty
  0ano!r p]son & 3sid],n fl[+ 6! p]son
  4pos+ (! prop]ty1 x is ! ,de"p;t's
  view t nei ( ^! "*i/ics ne$ alw 2
  pres5t =! purposes ( p>agraphs
  #ac7#ba77c7 & #ed7c74 ,x is cle> t "!
  ne$ n 2 a correspond+ acquisi;n (
  prop]ty 9 all cases :5 a p]son 4pos+ (
  prop]ty is 5titl$ 6rcv proce$s z    #a
               ,,it-#dfj             a#a
  describ$ 9 p>agraphs #ac7#ba77d7 &
  #ed7h71 b ! applic,n (! law is less
  c]ta9 :5 no proce$s >e 9volv$4
#b4 ,": ! ,de"p;t is satisfi$ t a
  4posi;n has tak5 place "u ! g5]al m1n+
  (! t]m z describ$ 9 #a abv & "! >e no
  actual or deem$ proce$s 9volv$1 an
  am.t ( z]o may 2 us$ z proce$s (
  4posi;n 9 subp>agraph #dj7#a77b77;i7 =
  purposes ( -put+ a loss f ! 4posi;n4
#c4 ,! foll[+ >e examples ( ev5ts t !
  ,de"p;t 3sid]s 6be 4posi;ns ev5 ?\< no
  actual proce$s >e 9volv$3
  7a7 a capital prop]ty is /ol5 or
    de/roy$ & "! is no 5title;t or "r
    6-p5s,n 79sur.e proce$s1 salvage1
    etc47 & n"o is =?com+2
  7b7 a capital prop]ty is lo/ or ab&on$
    & 2y r1sona# expect,n ( recov]y2
  7c7 a corpor,n1 9 : a taxpay] holds
    %>es (a "picul> class z a capital
    prop]ty1 surr5d]s 7or has c.ell$ or
    )drawn7 xs >ticles ( 9corpor,n & "!
    >e no assets 6: ! %>ehold]s ( t   #b
               ,,it-#dfj             b#a
    class >e or cd 2come 5titl$ 7b see
    #f 2l72
  7d7 a capital prop]ty is 3fiscat$ or
    expropriat$ )\t -p5s,n 0a gov]n;t2
  7e7 a "pn]%ip1 9 : a taxpay] has a
    "pn]%ip 9t]e/ 7a capital prop]ty71
    is 4solv$ &! taxpay] is n 5titl$ 6&
    does n rcv any %>e (! "pn]%ip's net
    assets 7if any72
  7f7 a capital prop]ty is transf]r$
    0way ( gift or don,n4
--------------------------------------#b
#d4 ,! foll[+ o3urr;es d n 3/itute a
  4posi;n 7)9 ! m1n+ ( p>agraph #ed7c77
  (a %>e (a corpor,n3
  7a7 ! corpor,n's %>es >e deli/$ f a
    /ock ex*ange1
  7b7 a regulatory au?or;y issues a
    8c1se trad+0 ord] 9 respect (!
    corpor,n's %>es1
  7c7 ! corpor,n goes 96rcvr%ip 7b see
    #e 2l71 or
  7d7 ! corpor,n 2comes bankrupt 7b see
    #e 2l74                           #c
               ,,it-#dfj             a#b
#e4 ,= #aigh & subsequ5t tax,n ye>s1 a
  %>ehold] (a corpor,n t has 2come
  bankrupt 79clud+ a corpor,n ag/ : a
  rcvg ord] has be5 issu$ 0a ,c\rt7 dur+
  a "picul> tax,n ye> is deem$ 0subsec;n
  #ej7#a7 6h 4pos$ ( 8 %>ehold+s = no
  proce$s at ! 5d ( t ye> 7un.s ! %>es 7
  acquir$ z 3sid],n =! 4posi;n (
  p]sonal-use prop]ty74
#f4 ,corporate legisl,n 9 v>i\s
  jurisdic;ns frequ5tly provides =!
  re/or,n ( corpor,ns t h previ\sly be5
  =m,y 4solv$1 z 9 #c7c7 abv4 ,s* a
  re/or,n w n nullify ! 4posi;n (a class
  ( %>es 0xs %>ehold]s t took place ^u
  4solu;n provid$ t
  7a7 ! corpor,n _h no assets at ! "t (
    4solu;n 6: ! %>ehold]s ( t "picul>
    class ( %>es 7 or cd h 2come 5titl$1
    &
  7b7 "! 0 no r1son 62lieve at ! "t (
    4solu;n t ! corpor,n wd 2 re/or$4
  
                                      #d
               ,,it-#dfj             b#b
  ,9 o!r cases a c>e;l exam9,n (!
  applica# facts is nec 6e/abli% t a
  bona fide 4posi;n did o3ur ^u 4solu;n4




















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