Words and Phrases - "publicly traded company"

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22 February 2022 External T.I. 2022-0922921E5 - CEWS, THRP, & HHBRP

definitions of “company,” “publicly traded company,” and “subsidiary”

CRA indicating regarding the interpretation of s. 125.7(2.01):

  • “Taxable dividends” include taxable dividends that are deemed dividends.
  • “Common share” has its defined meaning in s. 248(1) of “a share the holder of which is not precluded on the reduction or redemption of the capital stock from participating in the assets of the corporation beyond the amount paid up on that share plus a fixed premium and a defined rate of dividend.”
  • A “publicly traded company” is “a company the shares … of which are listed or traded on a stock exchange or other public market” and “would include [such] a non-resident company.”
  • Although the term “company” is “potentially more inclusive than the term corporation” it is considered to refer to a corporation (and would not include a partnership or trust) in the context inter alia of the references in s. 125.7(2.01) to “taxable dividends” and “common shares.”
  • A “subsidiary” is “generally understood to be a corporation that is controlled by another corporation either directly or indirectly through one or more intermediary corporations [referencing s. 2(5) of the CBCA]” … and CRA “would consider a subsidiary of a publicly traded company to be a corporation over which the publicly traded corporation exercises de jure control either directly or indirectly.”