CRA may rule that an election for a listed Target to cease to be a public corporation can be made after Target’s amalgamation

A corporation cannot make an election under (c)(i) of the public corporation definition to cease to be a public corporation (based on now being closely held) while its shares are still listed. This may be problematic if the stock exchange has not confirmed the delisting of Target until following the amalgamation of Target with Buyco (given that Amalco is tainted as a public corporation if a predecessor was so tainted.)

However, CRA generally is prepared to rule that the election can be made after the amalgamation (and after the delisting has occurred) even though at the time of making the election the Target shares no longer exist.

Neal Armstrong. Summary of 21 November 2017 CTF Annual Conference Roundtable, Q.12 under s. 89(1) - public corporation - (c)(i).