Principal Issues:
1. Would Aco, which is wholly owned by a public corporation, which in turn is controlled by a Canadian resident (individual), be a Canadian-controlled private corporation before December 1, 1999 (i.e., prior to the applicability of the simultaneous control provisions in subsection 256(6.1) of the Act)?
Position:
1. No.
Reasons:
1. After 1995, paragraph 125(7)(b), at the definition of Canadian-controlled private corporation, would apply to exclude Aco from being a Canadian-controlled private corporation. This is so notwithstanding the Court's decision in Parthenon (97 DTC 5343), which was decided based on an earlier version of the same definition.