Can a corporation trigger capital gains deliberately to increase its CDA and, as a result, facilitate surplus stripping?
Using 55(2) for this purpose might problematic because of issues with the purpose test.
A share exchange might be problematic as well. Is there a disposition? Is the exchange tax-deferred because of the application of section 51 or section 86?
The CRA might apply GAAR if a taxpayer avoids tax using losses (per MacDonald, 2013 FCA 110).
Eric Hamelin, “CDAs and Surplus Stripping” Tax for the Owner Manager 19:3 (July 2019)
