Principal Issues: In light of the 2016 legislative amendments to paragraph (d) of the definition of "capital dividend account" in subsection 89(1), can we confirm the CRA's position regarding the applicability of subsections 246(1), 56(2), section 9, or paragraph 12(1)(x) to a life insurance arrangement involving a Parentco as the policyholder and a Subco as the beneficiary (either revocable or irrevocable).
Position: Prior positions remain unchanged. We are unable to provide any further comments on the applicability of the aforementioned provisions to the limited circumstances described.
Reasons: The determination of whether these provisions apply to a particular arrangement is a question of fact that can only be ascertained on a case-by-case basis following a review of all the facts and circumstances of the particular arrangement.