CRA respects a provincial incorporating statute’s declaration of deemed property ownership by the provincial Crown for s. 149(1)(o.2)(iv) purposes

An s. 149(1)(o.2) corp. is required by s. 149(1)(o.2)(iv) to have shareholders that are registered pension plans or trusts or segregated funds for such plans - or prescribed persons, which are defined to include “Her Majesty in right of a province” (Reg. 4802(1)(e)) and a corporation all of whose shares are owned by prescribed persons (Reg. 4802(1)(g)).

CRA indicated that it considered a corporation - that was deemed in its enabling legislation to hold all its property as the property of the provincial Crown - to qualify under Reg. 4802(1)(e) (i.e., CRA respected this fiction for purposes of considering the province to own the shares of the (o.2) corp). Similarly, a wholly-owned corporation of such corporation would qualify under Reg. 4802(1)(g).

Neal Armstrong. Summary of 14 August 2020 External T.I. 2019-0829811E5 under Reg. 4802(1)(e).