In 0808414 B.C. Ltd. v R, 2024 TCC 99, the taxpayer sold equipment to a non-arm’s length purchaser as part of a transaction that also transferred employees and obligations under a pension and benefits plan. The CRA reassessed on the basis that the value of the equipment transferred was its fair market value determined without regard to the obligations of the taxpayer under the plan or the total value of the business transferred. The value of the equipment per 69(1)(b) was not reduced by any associated liabilities. The Court dismissed the taxpayer’s appeal.
