Chantal, who is aged forty$-$four, purchased a TFSA consisting of a growth equity segregated fund. She purchased this fund five years ago and she has a $75\frac{\%}{100}\%$ with regards to maturity and death benefit guarantees. Chantal invested $$20,000$ when she opened the contract. Its present market value is now $$30,000.$ She needs to liquidate the entire contract to deal with an unforeseen emergency expense.

What will be the tax implications of closing the contract and cashing in the entire proceeds?

Select one:

a$.$

Chantal will not have to pay any taxes on the withdrawal.

b$.$

Chantal will have to declare $$30,000$ as income.

c$.$

The insurer will withhold $$9,000$ as required by CRA.

d$.$

Chantal will have to declare $$10,000$ as capital gains.