11 January 2001 Internal T.I. 2000-0037167 F - CLAUSE D'AJUSTEMENT DE PRIX -- summary under Subparagraph 40(1)(a)(i)

Compensation received by the share purchaser pursuant to an indemnity clause in the share sale agreement in respect of losses sustained by the purchaser reduced the ACB of the shares to the purchaser rather than being an income receipt or taxable capital gain to it.