Tax Interpretations Judicial and CRA interpretations of Canadian tax law and transactional implications

Posts for Tag: 249(3.1)

2013-0504221E5 F – Fin d’années réputées
28 November 2013

Principales Questions: Une société issue d’une fusion qui perd son statut de SPCC peut-elle faire le choix prévu à l’alinéa 249(3.1)c)? Can a corporate entity, formed as a result of an amalgamation, that loses its status as a CCPC make the election provided for at paragraph 249(3.1)c)?

Position Adoptée: Non. No.

Raisons: Puisque la société issue de la fusion est une nouvelle société en vertu de l’alinéa 87(2)a) et qu’aucune disposition ne prévoit la continuité des sociétés remplacées pour cette fin, le choix visé au paragraphe 249(3.1) ne peut être fait. En particulier, l’exigence prévue au sous-alinéa 249(3.1)c)(i) n’est pas respectée. Since the corporate entity formed as a result of the amalgamation is deemed to be a new corporation under paragraph 87(2)a) and no provision indicates a continuation of the predecessor corporations in this situation, the section 249(3.1) can be elected. In particular, the condition provided for at subparagraph 249(3.1)(c)(i) is not met.

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2012-0455231E5 E – Section 89(1) – defn of a “public corporation”
21 September 2012

Principal Issues: Whether the definition in subsection 89(1) for a “public corporation” includes “corporations controlled by public corporations”?

Position: No

Reasons: A corporation will not be a “public corporation”, within the meaning of the definition of that term in 89(1), merely because it is controlled by a corporation that, itself, qualifies as a “public corporation”.

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