CRA rules that the winding-up of a labour union gives rise to capital gains to the union members

A union that was eligible for the s. 149(1)(k) exemption and that had been collecting union dues, ceased to be the accredited bargaining agent for the employer, as a result of which it is being wound-up and will be distributing its remaining assets to its members as required under its articles. CRA ruled that the amount so paid to the members will constitute proceeds of disposition of their rights as members in the union, thereby resulting in a capital gain.

Neal Armstrong. Summary of 2019 Ruling 2018-0779221R3 F under s. 149(1)(k).