When a 90 percent owned subsidiary is wound up under the provisions of ITA 88(1), the subsidiary will not be able to claim CCA in its final year as a separate entity.

Question

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When a subsidiary is wound up under ITA 88(1), it is considered to have disposed of all its assets at fair market value immediately before the cessation of business. Therefore, no CCA can be claimed in the final year as a separate entity.

When a 90 Percent Owned Subsidiary Is Wound Up Under