Which of the following statements is TRUE regarding the disposal of shares by a shareholder?
A) The sale of shares to other shareholders is known as a 'buy-back'.
B) The sale of shares to the corporate treasury is not allowed in the Income Tax Act.
C) The sale of shares to the corporate treasury may result in a deemed dividend and a capital gain or loss to the shareholder.
D) When a shareholder sells shares to other shareholders, the corporation's capital base increases.
Correct Answer:
Verified
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