Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether an amalgamated corporation can prepare T5 Information Return?
Position: Yes.
Reasons: If the applicable corporate or company law governing an amalgamation states that the predecessor corporations are continued in the amalgamated corporation, an amalgamated corporation could prepare information slips of a predecessor corporation
XXXXXXXXXX 2011-039722
Lindsay Frank
Attention: XXXXXXXXXX (613) 948-2227
August 2, 2011
Dear XXXXXXXXXX :
Re: T5s Filed by Amalgamated Corporation
This is in reply to your inquiry as to whether an amalgamated corporation can prepare the T5 information slips of the predecessor corporations.
Subsection 201(1) of the Income Tax Regulations (the "Regulations") requires a person making payments to creditors and investors holding debt and equity instruments of that person to file an information return, which consists of T5 slips and the related T5 summary.
Where the applicable corporate or company law governing an amalgamation provides that the predecessor corporations are continued in the amalgamated corporation, the rights and obligations of the predecessor corporations are not extinguished, see The Queen v. Black & Decker Manufacturing Co. Ltd., 43 D.L.R. (3d) 393 (S.C.C.). As a result, the amalgamated entity may, on behalf of a predecessor corporation, prepare returns required under the various provisions of the Income Tax Act. Accordingly, in the instant case, the amalgamated corporation may prepare the T5 information slips under subsection 201(1) of the Regulations.
Should you need clarification or additional information, please do not hesitate to contact Lindsay Frank at the number provided at the outset of this letter.
B.J. Skulski
Manager
Insolvency and Administrative Law Section
International and Trusts Division
Income Tax Rulings Directorate
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