The Tax Court held in the decision of Brouillette v. The Queen, 2005 DTC 1004, that the anti surplus stripping rules in section 84.1 are not applicable where the buyer corporation and the seller have separate economic interests, and they carry out a purchase and sale in accordance with those separate interests, effectively overruling the position of the Canada Revenue Agency in Technical Interpretation 2002-0166655.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."