Wind-ups

To determine a parent corporation's balance-due day in its first tax year after it receives the assets of a subsidiary corporation that is winding up [paragraph 88(1)(e.9) of the Income Tax Act], the taxable income for the previous tax year is the total of:

• the parent corporation's taxable income for that year; and
• the subsidiary corporation's taxable income for its tax years ending in the calendar year that the parent corporation's previous tax year ended.

The same rule applies for determining the business limit.

Forms and publications

• T2 Corporation – Income Tax Guide (T4012)
• Corporation Instalment Guide (T7B-CORP)

Date modified:

2015-12-15