Principal Issues: (1) Whether two societies, a public foundation that is a registered charity and a non-profit organization, both established under the XXXXXXXXXX, be considered to have disposed of their assets on their amalgamation to create a new society? (2) Whether members of the amalgamating societies will be considered to have realized income or capital gain or to have received a benefit pursuant to subsections 15(1), 56(2) or 246(1)? (3) Whether the new society will be a registered charity and could have the same business number and charity number as the previous one?
Position: (1) No. (2) No. (3) Administrative issue.
Reasons: (1) There is no disposition of assets since the new society will be the continuity of the previous societies under the XXXXXXXXXX and the cost and cost amounts will be transferred to the new society. (2) The new society is the continuity of the previous ones and the members are not allowed to receive dividends or property from both the previous societies and the new one. (3) It is not the mandate of the Income Tax Rulings Directorate to confirm the registration of a charity nor to issue a business or charity number.