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DCA2
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1. Subsection 50(1)(b) should negate the requirement for arms length.  It only requires that shares be owned in an insolvent corporation.  2.  I don't see why not, but the amount not claimed would be carried forward as a non-capital loss.  To me, a more interesting question is the valuation used to determine the ABIL in the first place.

 

 

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