Over the years, A made advances (the "Debt") to Aco which it wholly owned, and then sold all the shares of A to an arm’s length purchaser, as well as the Debt for nominal consideration. What are the consequences of the repayment by Aco of the Debt held by B?
CRA indicated that if the Debt was capital property, its partial or full repayment would give rise to capital gains having regard to its nominal ACB and ss. b)(i) and (ii) of "disposition" in s. 248(1), as well as s. 43(1).