Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: referred writer to revised technical notes which provided requested information, no new issues
Position:
Reasons:
March 27, 2000
C. Englehart, Manager Corporate Reorganizations
Technical Applications D. Yuen
Technical Applications and Valuations Division 957-8967
Attention: Peter Bush
2000-000776
Proposed Amalgamation
Your file 99121
We are writing in response to your memorandum dated February 11, 2000 wherein you requested our comments on a proposed amalgamation of two corporations, each of which is a labour-sponsored venture capital corporation ("LSVCC") registered under Part X.3 of the Income Tax Act (Canada). You are concerned whether new paragraph 204.85(3)(a) (contained in Bill C-25 which received first reading in the House of Commons on February 16, 2000) would be interpreted to deem the new corporation formed on the amalgamation or merger of corporations, at least one of which is a federally-registered LSVCC or a revoked corporation, to have been incorporated on the date that a predecessor corporation was incorporated.
Consistent with the revised explanatory notes to subsection 204.85(3) which were published by the Minister of Finance in December 1999, it is our view that the new corporation would generally be deemed by new paragraph 204.85(3)(a) to have been incorporated on the date that a predecessor corporation was incorporated.
for Director
Reorganizations and International Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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