Amalgamations

When a new corporation is formed by amalgamation, it is treated as a continuation of the predecessor corporations. See Section 87 of the Income Tax Act.

Generally, the instalment base of the new corporation is the total of the predecessor corporations' instalment bases. See Regulation 5301(4) of the Income Tax Regulations.

See the example of instalment base – amalgamations.

Forms and publications

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

Date modified:

2017-02-07