CRA indicates that s. 84(2) generally does not apply to a payment made by Amalco to a shareholder dissenting to the amalgamation

A shareholder dissents to an amalgamation and receives a payment from the amalgamated corporation for the fair value of its shares. Would s. 84(3) apply?

After noting its longstanding position that s. 84(3) would not apply to a payment made to a shareholder dissenting to an amalgamation by the amalgamated corporation, so that capital gains treatment would apply, CRA went on to indicate that it would not generally view such payments as falling under s. 84(2).

However, if it determined that applying s. 84(2) was necessary to give effect to the provision’s underlying anti-avoidance purpose, then it may be invoked.

Neal Armstrong. Summary of 13 May 2026 IFA Roundtable, Q.1 under s. 84(2).