CRA finds that the statutory amalgamation rules apply to a Canadian absorptive merger

This concerned a merger under a BC plan of arrangement of a BC corporation (Subco) and its wholly-owned BC sub (Target).  The plan of arrangement (for US tax reasons) provided that Target survived the merger and that Subco ceased to exist - while at the same time (and perhaps with a view to the requirements of s. 87(1)) stating that Target and Subco continued as one corporation.

CRA found that this merger satisfied the requirement in the definition of amalgamation in s. 87(1) that a corporation be "formed" on the merger - and the requirement, for s. 87(11)(b) to apply, that the "new" corporation "acquire" the property of the subsidiary (Target) on the amalgamation.

Neal Armstrong.  Summary of 2012 Ruling 2010-0355941R3 under s. 87(11).