In 2014-0547321C6, the CRA considered a ruling request which involved a tax-deferred transfer (rollover) of depreciable property to a captive Canadian partnership under s. 97(2), followed immediately thereafter by the contribution of cash to the partnership by a non-resident (as a new partner). The cash contributed by the non-resident was used to pay out a note that was issued on the rollover. The CRA confirmed that the GAAR Committee denied the requested ruling on the ground that the transactions resulted in a misuse or abuse of the Act having regard to the rules in s. 100(1), 100(1.4), and 100(1.5). In particular, had the transactions instead involved a rollover to the captive Canadian partnership followed by a direct sale of a partnership interest to the non-resident, a portion of the deferred recapture (on the rollover) would have been fully taxed under s. 100(1) (on the subsequent sale). Accordingly, in the CRA’s view the transactions as structured resulted in abusive tax avoidance under s. 245. The CRA did not expressly comment on whether the result could be different if the partnership held only capital non-depreciable property.