CRA finds that re-immigration step-down election under s. 128.1(6)(c) is available for shares which formerly were taxable Canadian property

The election in s. 128.1(6)(c) typically permits an individual who previously was subject to the departure tax under s. 128.1(6)(b) to adjust downwards the departure proceeds of disposition and the adjusted cost base of those properties on return to Canada. CRA also considers that the election is available to the individual respecting shares of a corporation that, at the time of emigration, were taxable Canadian property for which the individual deferred the departure tax by posting security under s. 220(4.5) and that now, at the time of immigration, no longer are taxable Canadian property.

Neal Armstrong. Summary of 30 July 2015 T.I. 2013-0494871E5 under s. 128.1(6)(c).