An amalgamation takes place when two or more corporations, known as predecessor corporations, combine their businesses to form a new successor corporation.

Corporations Canada and the provincial and territorial governments approve all corporate amalgamations.

The CRA accepts either of the following as proof of amalgamation:

• the certificate of amalgamation from either Corporations Canada or the provincial or territorial government
• a court order

Send either proof of amalgamation to your tax centre.

Based on the information received, the CRA makes the necessary changes to the old business numbers (BN) including the corporation income tax accounts, and, if necessary, register a new BN and CRA accounts for the newly created corporation.

If you want to keep the BN of one of the old corporations, send a letter to your tax services office or tax centre to tell the CRA which number to keep. However, if one of the corporations is non-resident, you have to apply for a new BN.

Several topics below explain how an amalgamation may have an effect on many of your dealings with the CRA.

Payments

• Rules for special situations – Amalgamations – Learn how to calculate your instalment base.
• Paying your balance of corporation tax – Amalgamations – A special rule applies in determining your balance-due day and business limit

Filing your return

Effective date of amalgamation – Each of the predecessor corporations has to file a return for the period ending immediately before the effective date of amalgamation. The fiscal period start of the successor corporation begins on the date of amalgamation. For more information, see "Effective Date of Amalgamation" in Income Tax Folio S4-F7-C1, Amalgamations of Canadian Corporations.

Final tax year before amalgamation – What predecessor corporations need to know. See "Line 076 – Is this the final tax year before amalgamation?" in the Guide T4012, T2 Corporation – Income Tax Guide.

First year of filing after amalgamation – Information on completing your T2 return. See "Line 071 – Is this the first year of filing after amalgamation?" in the T2 Corporation – Income Tax Guide. You also have to file Schedule 24, First Time Filer After Incorporation, Amalgamation, or Winding-up of a Subsidiary into a Parent with your T2 Corporation Income Tax Return.

Forms and publications

• Guide T4012, T2 Corporation – Income Tax Guide
• T2 Corporation Income Tax Return
• Schedule 24, First Time Filer After Incorporation, Amalgamation or Winding-up of a Subsidiary Into a Parent
• Income Tax Folio S4-F7-C1, Amalgamations of Canadian Corporations
• Interpretation Bulletin IT-302, Losses of a Corporation – The Effect That Acquisitions of Control, Amalgamations, and Windings-Up Have on Their Deductibility – After January 15, 1987

Related topics

• Amalgamating or merging and the GST/HST account
• Guide on amalgamating business corporations

Government partners

• Business and industry
• Related provincial and territorial government sites
• Innovation, Science and Economic Development Canada