The CRA believes that taxable capital gains are “income” for the purposes of paragraph (c) of the “excluded shares” definition in the TOSI rules. The CRA also states that the gains in question should be computed on a gross basis, without deducting allowable capital losses. Dino Infanti, “Taxable Capital Gains Are Income for TOSI “Excluded Shares” Purposes” (Oct 2019) 19:4 Tax for the Owner-Manager, commenting on CRA technical interpretation 2019-0802331E5 (May 24, 2019).
