Section 251.2

Subsection 251.2(1)

Subsection 251.2(2)

Paragraph 251.2(2)(a)

See Also

Birchcliff Energy Ltd. v. The Queen, 2017 TCC 234

A newly-launched public corporation ("Birchcliff") sought to access the losses and credits of a lossco ("Veracel"). A substantial subscription...

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Tax Topics - General Concepts - Sham ephemeral transactions under a Plan of Arrangement were not a sham 215
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) series of transactions found to be an avoidance transaction 306
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) raising share equity through a lossco immediately before its amalgamation was abusive 278

Administrative Policy

15 June 2022 STEP Roundtable Q. 6, 2022-0928191C6 - Acquisition of control

A Canadian corporation is wholly owned by a trust, which is a discretionary trust, so that s. 256(7)(i) does not apply. Is there an acquisition...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(a) - Subparagraph 256(7)(a)(i) - Clause 256(7)(a)(i)(A) application of s. 256(7)(a)(i)(A) where trustee is replaced by related trustee 202

2021 Ruling 2020-0874931R3 F - Post-mortem Pipeline

The statement of facts indicated (at para. 35) that the resignation and replacement of the executor of an estate resulted in a deemed taxation...

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Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) pipeline using a joint Newco of children and estate 415

3 April 2019 Internal T.I. 2018-0787561I7 - Partnership and the Meaning of "Related"

In the course of a routine response, CRA noted its position that “when a partnership owns shares in a corporation … [t]he partnership...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) partnership agreement consulted to determine whether partner controls a corporation held by the partnership 134

15 October 2014 External T.I. 2014-0547551E5 F - Acquisition of Control

The common shares of Opco are held as follows: A-20%; B-9%; C-10%; D-25%; E-10%; F-13%; G-13%. A, B and C are a related group as are E, F and G. D...

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Tax Topics - Income Tax Act - Section 249 - Subsection 249(4) reduction in CCPC shareholders from 7 to 4 likely would result in AOC 287

18 December 2013 External T.I. 2013-0511101E5 F - Substantial interest - Part VI.1

An inter vivos trust (Trust), with three individual trustees holds Class A non-voting common shares and C special voting shares of Corporation. An...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 191 - Subsection 191(3) creation of substantial interest through redemption of special voting shares 414
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition no disposition of shares that became voting by operation of law (due to cancellation of voting shares) 171
Tax Topics - Income Tax Act - Section 249 - Subsection 249(4) voting rights shifted to 2nd trust with same trustees: no control change 179

5 October 2012 APFF Roundtable, 2012-0454111C6 F - Power of attorney and acquisition of control

Mr. X, who is the sole shareholder of XYZ Inc., signs a mandate (power of attorney) in favour of his accountant (with whom he deals at arm's...

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8 October 2010 Roundtable, 2010-0373131C6 F - Présomption d'action concertée

What is the basis for the presumption that the three unrelated shareholders of a private corporation will act together to control the corporation,...

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21 March 2005 Internal T.I. 2005-0119961I7 F - CCPC STATUS

USco disposed of 50% of the shares of Canco to another corporation ("Holdco" – that was a Canadian-owned Canadian corporation), "retroactive" to...

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Tax Topics - General Concepts - Effective Date effective date of transfer of shares (entailing acquisition of control) cannot precede determination of essential contract elements 145

Paragraph 251.2(2)(b)

Subsection 251.2(3)

Paragraph 251.2(3)(b)

Articles

Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Trusts Resident in Canada", Chapter 3 of Canadian Taxation of Trusts, (Canadian Tax Foundation), 2016.

Application where trustees vest all interests of a beneficiary (pp. 154-155)

Paragraph 251.2(3)(b) provides that variations or amendments to a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(3) 374
Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(4) - Paragraph 251.1(4)(d) 437
Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(g) - Subparagraph 251.1(1)(g)(ii) 115
Tax Topics - Income Tax Act - Section 164 - Subsection 164(6) 141
Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) 331
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(1) 144
Tax Topics - Income Tax Act - Section 252.2 - Subsection 252.2(2) 115
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(i) 176
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(d.1) 161
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 1201
Tax Topics - Treaties - Income Tax Conventions - Article 29B 239
Tax Topics - Income Tax Act - Section 248 - (2)-(41) 157
Tax Topics - Income Tax Act - Section 248 - Subsection 248(8) 199
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.2) 59
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.3) 38
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(6) 174
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(6) 164
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) 163
Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) 91
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(18) 49
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(7.01) 66
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(19) 311
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) 125
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) 144
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) 379