In Canada, when you transfer shares of a privately held company to your parent, is there capital gain?

All shareholders in the company are family members, and it is used to hold rental properties. When one member transfer shares to another, is there capital gain? If so, can you elect rollover?In Canada, when you transfer shares of a privately held company to your parent, is there capital gain?
if you transfer the shares there is a disposition. If the fair market value (fmv) of the shares exceeds the cost base there is a gain.





Generally what is done is a ';freeze'; the existing shares are exchanged for a class of pref shares with a redemtion value equal to the FMV of the old shares. Taxes are deferred until the shares are redemmed or transferred to another party.





Then the family member subscribes for new common shares at a nominal value. Existing value is not transferred so no gain, the family member participates in future growth.