In Bell Canada Enterprises' spin-off,shareholders who received Nortel shares ________ for capital gains tax at the time they ________ the Nortel shares.

Question

Quizplus · Accepted Answer

The question states that shareholders received Nortel shares in a spin-off from Bell Canada Enterprises. In this scenario, shareholders are liable for capital gains tax at the time they sell the Nortel shares. Therefore, option B is the correct answer. Option A and C are incorrect because one says shareholders are not liable at the time they sell, while the other suggests they are not liable at the time they receive the Nortel shares, which is not according to the question. D is incorrect because shareholders are liable for capital gains tax, not income tax.

In Bell Canada Enterprises' Spin-Off,shareholders Who Received Nortel Shares ________