For purposes of calculating the s. 220(4.5) security, does an individual qualify for an exemption from providing security on the first $100,000 of capital gains even if such gains exceed $100,000? CRA responded that the deemed security under s. 220(4.51) (the “Deemed Security”):
is generally equal to the lesser of the total amount of those taxes that would be payable for the year by a trust resident in Canada on $100,000 of capital gains (the "Upper Limit") and the greatest amount for which the Minister is required to accept security under subsection 220(4.5) at that time in respect of the emigration year. Thus … for purposes of computing the security required under subsection 220(4.5), an individual would generally be entitled to benefit from the Deemed Security even if his or her capital gain exceeds $100,000 … .