Significant closing agenda items before the acquisition and amalgamation of target will result in it having two deemed taxation year ends

When a target engages in significant transactions described in a plan of arrangement or closing agenda on the closing date but before the closing of its acquisition (at, say, 6:00 p.m.), it is logical for the amalgamation of the target and the acquirer to be considered to occur subsequently to the other transactions (i.e., after 6:00 p.m. rather than effective the beginning of the closing date).  Accordingly, the acquisition of control and amalgamation of the target will give rise to two deemed taxation year ends of the target even if it makes a s. 256(9) election.

Neal Armstrong. Summary of 26 March 2014 2014-0523251E5 F under s. 87(2)(a).