2019 Ruling 2018-0779221R3 F - Dissolution d'une association ouvrière -- summary under Disposition

A union that was eligible for the s. 149(1)(k) exemption and that had been collecting union, ceased to be the accredited bargaining agent for the employer, as a result of which it is being wound-up and will be distributing its remaining assets to its members as required under its articles. CRA ruled that the amount so paid to the members will constitute proceeds of disposition of their rights as members in the union, thereby resulting in a capital gain.