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.
XXXX J.D. Brooks (613) 957-2118
XXXX
April 28, 1986
Dear Sirs:
This is in reply to your letter of February 6, 1986 in which you requested our opinion concerning the change in control of a corporation.
You presented a hypothetical example wherein Company A is owned equally by three brothers. One of the three brothers sells his 1/3rd interest of Company A to his wholly-owned holding company ("Holdco") and elects under subsection 85(1) of the Income Tax Act (the "Act") to effect the transfer on a tax-free rollover basis.
In Interpretation Bulletin 302R the Department has stated that for purposes of section 111 of the Act it will consider whether there has been a change in the ultimate control of a corporation. In the example provided, ultimate control has not changed and, for purposes of subsections 111(4) and (5), it is our opinion that there has not been an acquisition of control by a person or persons. Therefore it is not necessary to determine if relief is available pursuant to subparagraph 256(7)(a)(i).
These comments represent an expression of opinion and are not binding on the Department, as explained in paragraph 24 of Information Circular 70-6R.
Yours truly,
for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1986
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1986
Email this Content