Question

10 dominic owns a recruitment consultancy, abc corp., which is a canadian - controlled private corporation (ccpc). if dominic dies, he will be deemed to have disposed of his shares in the business for its fair market value, and therefore, he anticipates a taxable capital gain of over $500,000 triggered upon his death. being a ccpc, the capital gain arising from dominics death will be sheltered by:
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a. ∘ mtar.
b. ∘ lird.
c. ∘ naar.
d. ∘ lcge.
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Explanation:

In Canadian tax law, for a Canadian - controlled private corporation (CCPC), the capital gain arising on the death of a shareholder (when deemed to dispose of shares at fair market value) is sheltered by the Lifetime Capital Gains Exemption (LCGE). MTAR, LIRD, and NAAR are not related to sheltering this type of capital gain.

Answer:

d. LCGE