Précis: The appellants disposed of the shares of Gestion RJCG Inc. ("RJCG") in 2006 and claimed a capital gains exemption in respect of the disposition. CRA denied the exemption on the basis that RJCG was not a "qualified small business corporation shares" as defined by subsection 110.6(1) of the Income Tax Act (the “Act”). CRA concluded that RJCG was controlled by Aviva Canada Inc. ("Aviva"), a public corporation, by virtue of an option agreement throughout the 24 month period preceding the disposition. Thus it was not a Canadian-controlled private corporation (“CCPC) and, as a result, not a qualified small business corporation.
Durocher v. R. - TCC: Option not a nullity - corporation not a CCPC - no capital gains exemptionREAD MORE »