A lump-sum payment received by the individual shareholder of a corporation upon a sale by that corporation of one of its business divisions and in consideration for a non-compete covenant given by the individual to the purchaser would be regarded as a capital gain arising on a disposition of "property" (the right of the individual to compete).
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|Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property||59|
|Tax Topics - Income Tax Act - Section 54 - Capital Property||59|
81 C.R. - Q.6
Notwithstanding Rapistan, know-how that is of a capital nature is eligible capital property.