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29 November 2022 CTF Roundtable Q. 11, 2022-0949761C6 - Earnout Agreement

Reasons: The language in IT-426R. 2022 CTF Annual CRA Round Table November 29, 2022 Question 11 Shares Sold Subject to an Earnout Agreement In the Interpretation Bulletin IT-426R “Shares Sold Subject to an Earnout Agreement” (September 28, 2004) [archived] (“IT-426R”) the Canada Revenue Agency (“CRA”) describes the cost recovery method of reporting gains or losses on the sale of shares subject to an earnout agreement. ... There is a difference between the html and pdf versions of the condition in subparagraph 2(d) of IT-426R on the CRA website. ... Notwithstanding that IT-426R is archived, the CRA has updated the CRA’s website so that the html version of IT-426R matches the pdf version. ...