Wesdome Gold Mines – Cour du Québec finds that assessments of an already-dissolved corporation were invalid

The immediately preceding post notes that Wesdome successfully appealed an assessment by ARQ of its 2005 year denying CEE deductions. In a 2014 decision, which we did not notice until now, the same judge found that assessments by ARQ of the 2006 and 2007 years (also denying CEE deductions) were invalid because Wesdome had been dissolved one day prior to the dates of the assessments in connection with completing its winding-up into its wholly-owning parent corporation.

Godbout J noted that, under s. 313 of the Quebec Business Corporations Act, the parent became liable for the obligations (including tax obligations) of the dissolved subsidiary, and found that the assessments instead should have been issued against the parent.

Neal Armstrong. Summary of Wesdome Gold Mines Ltd. v. ARQ, 2014 QCCQ 8444 under s. 152(1).