The CRA appeared unsympathetic to the idea that detailed calculations of safe income might not be necessary where Opco is wholly-owned by Holdco, and Opco accounting income does not differ greatly from its taxable income. The CRA representative spoke darkly about the possible application of 152(4), 163(2) and even 239(1) (!) where a proper calculation isn’t done. 2016 CTF Roundtable Q2. [Editorial comment: Good luck convincing a non-specialist judge to believe beyond a reasonable doubt that anyone could possibly intend to commit tax evasion by failing to do a “proper” safe income calculation.]
