Transfers or rollovers

There are situations where, in a transaction to which subsection 85(1), 85(2), or 142.7(3) of the Income Tax Act applies, a corporation receives all or substantially all (generally 90% or more) of the property of another corporation that it does not deal with at arm's length.

In this case, the corporation has to include, in addition to its own instalment base, the instalment base of the other corporation. See Regulation 5301(8) of the Income Tax Regulations.

See the example of instalment base – transfers or rollovers.

Forms and publications

• T2 Corporation – Income Tax Guide (T4012)
• Corporation Instalment Guide (T7B-CORP)
• S1-F5-C1: Related persons and dealing at arm's length

Date modified:

2015-12-15