CRA refers to its rulings practice of no amalgamation or winding-up the deceased’s corp with the pipeline corp for at least 1 year, and suggests a ruling application re any departure from this

The estate of A incorporated “Parent” and transferred all its shares of a corporation (“Subsidiary”), that had been held by A on A’s death, to Parent in exchange for a promissory note. Is the amalgamation of Subsidiary with Parent, or its winding-up into Parent, a factor in determining whether s. 84(2) applies?

After referring to the various rulings it has issued on post-mortem pipeline strategies, CRA stated:

In almost each case, arguably in order to address the potential application of subsection 84(2), the proposed transactions submitted by the taxpayers provided that, among others, the original corporation would remain a separate and distinct entity from the pipeline corporation and would not be wound up or amalgamated with the pipeline corporation or another corporate entity for a period of at least one year. In addition, the original corporation would continue to carry on business during that particular period of time.

Where taxpayers wish to proceed in a manner different from that described above, they may consider requesting an advance income tax ruling in order to obtain certainty regarding the application of subsection 84(2).

Neal Armstrong. Summary of 5 May 2026 CALU Roundtable Q. 4, 2026-1089341C6 - Subsection 84(2) – Timing of Amalgamation in Post-Mortem Pipeline/Bump Planning under s. 84(2).