CRA respects a “gift” of shares to a public foundation occurring in a technology-commercialization context

S. 149.1(3)(c), which effectively prohibits a public foundation from acquiring control of any corporation, is ameliorated by s. 149.1(12)(a), which indicates that there is no such acquisition of control where the foundation has not acquired the shares of the corporation for consideration.

CRA has ruled that the gift of all the shares of a taxable corporation by a charitable organization to a public foundation comes within this exemption notwithstanding that this occurs as part of a broader arrangement for commercializing technology rights which the charitable organization had transferred to the corporation.

Neal Armstrong.  Summary of 2013 Ruling 2012-0443321R3 under s. 149.1(12)(a).