When a corporation redeems all or part of its outstanding shares, the difference between the proceeds of redemption and the PUC of the shares will be treated as a capital gain for tax purposes.

Question

Quizplus · Accepted Answer

When a corporation redeems all or part of its outstanding shares, the difference between the proceeds of redemption and the adjusted cost base (ACB) of the shares will be treated as a capital gain for tax purposes, not the Paid-Up Capital (PUC).

When a Corporation Redeems All or Part of Its Outstanding