Capital gains inclusion clarified: specified transfers and failures to meet post-transfer conditions trigger taxable capital gains. Capital gains include income from transfer of investment assets and specifically cover situations where, within a prescribed period, a parent ceases to hold subsidiary share capital or the transferee converts the asset into a business trading asset; failures to comply with conditions attached to certain transfer exemptions or to deductions for withdrawals, deposits or other conditional deductions also result in recapture as capital gains.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains inclusion clarified: specified transfers and failures to meet post-transfer conditions trigger taxable capital gains.
Capital gains include income from transfer of investment assets and specifically cover situations where, within a prescribed period, a parent ceases to hold subsidiary share capital or the transferee converts the asset into a business trading asset; failures to comply with conditions attached to certain transfer exemptions or to deductions for withdrawals, deposits or other conditional deductions also result in recapture as capital gains.
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