Regulation 8500

Subsection 8500(1)

Predecessor Employer

Administrative Policy

5 May 2017 OBA Seminar, Q.7

"significant number" concept applied on a business segment basis

What does “all or a significant number of employees” mean?

CRA indicated that in the absence of anything defining “significant” in Canadian case law, it drew on the ordinary dictionary meaning of “significant.” It accepts that the significant test can be based on absolute numbers or be applied on a percentage basis. If, for example, a distinct segment of a particular company were sold off, CRA would consider it appropriate to look only at that particular segment of the company, rather than the company as a whole, in determining whether or not a significant number of employees have become employees of the acquiring employer.

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