Subsection 128(1) - Closely Related Corporation
See Also
9331-0688 Québec Inc. v. The King, 2023 TCC 173 (Informal Procedure)
Jorré J found that three corporations were ineligible to make the s. 156(2) nil consideration election because they were not “closely...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 156 - Subsection 156(1) - Qualifying Group | three corporations wholly-owned by an individual could not make a s. 156 election | 115 |
Administrative Policy
5 July 2012 Interpretation Case No. 119159
Incorporated societies which had the same board members and, therefore, were controlled by the same group of persons did not qualify as closely...
Paragraph 128(1)(a)
Administrative Policy
GST/HST Memorandum 14-7 Closely Related Corporations June 2023
S. 128(1) rule generally does not apply where shareholder is non-corporate
25. In general, subsections 128(1) and (2) do not apply where a person...
26 February 2015 CBA Roundtable, Q. 20
Does the 90% test in s. 128(1)(a) only take into consideration shares that have “full voting rights under all circumstances” in both the...
11 October 2017 Interpretation 181628
A parent corporation (Corporation A) wholly owns three subsidiaries (Corporations B, D, and G) that in turn wholly own qualifying subsidiaries...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Qualifying Subsidiary | great-grandchild held on a 50-50 basis | 35 |
26 February 2015 CBA Roundtable, Q. 20
Does the 90% test in s. 128(1)(a) only take into consideration shares that have “full voting rights under all circumstances” in both the...
Subparagraph 128(1)(a)(i)
Administrative Policy
18 November 2021 GST/HST Interpretation 232687 - Application of the election under section 150 of the Excise Tax Act to a closely related group
A credit union (“CU Inc.”) has a 20% ownership interest in a limited partnership fund (“FI Fund LP”), with the balance held by other...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Closely Related Corporations (GST) Regulations - Section 3 - Paragraph 3(a) | s. 3(a) can accommodate minority employee incentive shares | 218 |
| Tax Topics - Excise Tax Act - Section 150 - Subsection 150(6) | credit union need not file the s. 150 election | 41 |
Subsection 128(1.1)
Administrative Policy
GST/HST Memorandum 14-7 Closely Related Corporations June 2023
Recap of s. 128(1.1)
29. In other words, in order for a person (or a group of persons) to be considered to hold qualifying voting control of a...
Paragraph 128(1.1)(a)
Subparagraph 128(1.1)(a)(i)
Administrative Policy
GST/HST Notice No. 303 - Changes to the Closely-related Test
Exception for special voting matters provided by statute, or where a statute provides a special class vote
Thus, in order for a person (or group...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 156 - Subsection 156(1.1) - Paragraph 156(1.1)(b) | examples of CBCA exceptions | 108 |
| Tax Topics - Excise Tax Act - Section 150 - Subsection 150(2) - Paragraph 150(2)(b.1) | example of substantially all test not satisfied | 174 |
Clause 128.1(1.1)(a)(i)(B)
Administrative Policy
GST/HST Memorandum 14-7 Closely Related Corporations June 2023
Separate class vote accorded by CBCA not taken into account
31. [C]ertain matters listed in subsection 176(1) of the Canada Business Corporations...
Subsection 128(2)
Administrative Policy
GST/HST Memorandum 14-7 Closely Related Corporations June 2023
Example 10
- A and B (a qualifying subsidiary of A) each hold 50% of the full voting rights and 50% of the ownership for the shares of C, so that A...
19 June 2015 Interpretation 167422
Holdco, a non-resident corporation, holds two stacks of wholly-owned Canadian and US corporations: US 2 holding US4, holding C 1, holding C 3; and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 156 - Subsection 156(1) - Qualifying Group | limitations on stacking | 56 |
Subsection 128(4)
Administrative Policy
GST/HST Memorandum 14-7 Closely Related Corporations June 2023
Example 4
- A and B each owns 50% of the shares of C, which wholly-owns D, but all of the voting rights attached to the shares of D are held by...
7 October 2020 APFF Roundtable Q. 14, 2020-0852261C6 F - Section 128 E.T.A.
In 18 March 2019 Interpretation 186839, all the shareholders of a corporation (the “Corporation”) entered into a unanimous shareholders...
18 March 2019 GST/HST Interpretation 186839 - Personnes morales étroitement liées
The Shareholders (who are not closely-related to each other) of the Corporation have entered into a unanimous shareholders agreement with the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) | a USA stripped away voting control of a parent over its wholly-owned subs | 173 |