Subsection 249(1)
Cases
Katz Estate v. The Queen, 76 DTC 6377, [1976] CTC 633 (FCTD)
Addy, J. stated, obiter, that "where section 249 refers to an individual, it must be taken to refer to an individual who is alive and ... [a]...
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| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) | 53 |
Administrative Policy
7 November 2012 External T.I. 2012-0468101E5 - Year End of Inter Vivos Trust on Wind Up
The taxation year of an inter vivo trust that has distributed all its property in the year to its beneficiary and, therefore, has effectively been...
17 July 2000 Internal T.I. 2000-0012557
"The taxation year of an inter vivos trust is December 31, regardless of when it is wound up....[T]he trust could not avoid the application of...
28 February 1998 T.I. 9714685
"It is our view that by virtue of subsection 104(2) and 249(1) of the Act, the last taxation year of an inter-vivos trust ends on December 31 of...
94 C.P.T.J. - Q.22
"A predetermined agreement which sets out how the group is to act in certain situations would normally constitute acting in concert ... ....
4 October 89 Memorandum (March 1990 Access Letter, ¶1155)
The taxation year of a deceased taxpayer ends on the date of his death.
89 C.M.TC - Q.4
The RCT policy to permit a joint venture to establish its own fiscal period is intended to apply primarily to the situation where the participants...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | 44 |
88 C.R. - Q.79
An election pursuant to s. 195 of S.C. 1988, C.55 will be accepted if made in a late-filed return, but not if in an amended return.
Subsection 249(3) - Fiscal period exceeding 365 days
Administrative Policy
28 April 2015 External T.I. 2014-0560131E5 - Subsection 249(3) - fiscal period exceeds 365 days
A taxpayer changes from a calendar to a floating fiscal period, with the first such period beginning on January 1, 2014, and ending on January 3,...
17 October 2014 Internal T.I. 2014-0535561I7 F - Application du paragraphe 249(3)
A corporation has a financial year commencing 31 December 2009 and ending 3 January 2011. The Directorate stated (TaxInterpretations...
18 January 1994 External T.I. 5-933096
Where a corporation has a fiscal year commencing on December 29, 1991 and ending on January 2, 1993 and its subsequent fiscal period commences on...
Subsection 249(3.1) - Year end on status change
Administrative Policy
22 October 2014 Internal T.I. 2014-0550191I7 - Subsections 89(11) and 249(3.1)
Does s. 249(3.1) apply when a corporation files a s. 89(11) election, thereby triggering a deemed year-end - and does a revocation of the election...
27 March 2014 External T.I. 2014-0523171E5 - Deemed year-end pursuant to 249(3.1)
A few years after the taxpayer (a Canadian-controlled private corporation) made the s. 89(11) election, two public corporations acquired more than...
27 March 2014 External T.I. 2014-0524851E5 F - Deemed year-end and CPCC status
On December 1, Bco (a CCPC) makes a binding offer (to which s. 251(5)(b) applies) to purchase all the shares of Aco whose ultimate control is by a...
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| Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) | Ekamant: s. 251(5)(b) does not vitiate actual control by share owner | 199 |
28 November 2013 External T.I. 2013-0504221E5 F - Fin d'années réputées
Opco, a Canadian-controlled private corporation with a September 30 year end, amalgamates on October 1 with another CCPC so that the deemed year...
2 December 2011 External T.I. 2011-0424446E5 - Interaction of Subsections 249(3.1) and 249(4)
on November 30, a Canadian-controlled private corporation (Corp A) and a non-resident enter into a purchase agreement, with the non-resident...
Subsection 249(4) - Year end on change of control
Administrative Policy
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. ...
15 April 2014 External T.I. 2014-0527231E5 F - Acquisition of control and amalgamation
A plan of arrangement provide for the following transactions to occur on 18 January 20X1 and in the indicated order but without a particular hour...
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| Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) | same day amalgamation following control acquisition gives rise to two taxation year ends if out-of-normal course transactions occur on day of closing | 218 |
26 March 2013 External T.I. 2014-0523251E5 F - Acquisition of control and amalgamation
Following a sale of assets of a corporation and a rollover of its shares on 18 January 20X1, an acquisition of control of the corporation occurs...
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| Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) | double taxation year ends where transactions occur on the closing date before acquisition and amalgamation | 350 |
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. ...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 191 - Subsection 191(3) | creation of substantial interest through redemption of special voting shares | 376 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | voting rights arising by operation of law not a disposition | 173 |
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...
17 February 2011 External T.I. 2010-0388081E5 - Clarification STEP Roundtable Q3 - Deemed Year End
It is generally CRA's position that a target corporation will only have one deemed year end where an acquisition of control of the target is...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(b) | double year ends where acquisition of control under s. 256(7)(b)(ii) | 162 |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) | double year ends where acquisition of control under s. 256(7)(b)(ii) | 165 |
Income Tax Technical News, No. 34, 27 April 2006 under "Change in Trustees and Control".
Income Tax Technical News, No. 7, 21 February 1996
Discussion of when shareholders of a closely-held corporation are considered to be acting in concert or otherwise to represent a group.
1994 A.P.F.F. Round Table, Q. 48
"In general, the Department's position is that an agreement signed between shareholders has no influence whatever on determining de jure control...
18 May 1993 T.I. (Tax Window, No. 31, p. 4, ¶2511)
Where a widely-held public corporation (A) issues treasury shares pursuant to a takeover bid to the shareholders of B (another widely-held public...
25 August 1992 External T.I. 5-921586
Where an individual (or group of persons) transfers a controlling interest in one corporation to a second corporation in exchange for a...
29 July 1992 Memorandum (Tax Window, No. 21, p. 4, ¶2037)
Two unrelated individuals each holding ½ of the shares of a corporation will not be considered to act in concert simply because the consent of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | 27 |
29 June 1992 Internal T.I. 7-920444
Discussion of what constitutes a "group of persons".
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|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | 34 |
28 May 1992 T.I. 920817 (December 1992 Access Letter, p. 38, ¶C248-120)
Where trustees of a trust control the voting rights of shares of a corporation prior to the distribution of the shares to unrelated beneficiaries,...
14 May 1992 External T.I. 5-920356
It is RC's position that a shareholders' agreement, regardless of whether or not it is pursuant to a specific statute or includes the corporation...
91 C.R. - Q.12
The existence of a shareholder agreement between two 50% shareholders will not always be prima facie evidence that they constitute a group.
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|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | 28 |
15 November 1991 T.I. (Tax Window, No. 11, p. 10, ¶1535)
A corporation ("Holdco") which held less than 50% of the shares of another corporation ("Opco") and which dealt at arm's length with the other...
90 C.R. - Q43
In the absence of the application of s. 256(8), control of a corporation normally will be considered to be acquired on the date of closing.
90 C.R. - Q39
Where corporations A and B are amalgamated on the same day on which control of corporation B was acquired by corporation A, corporation B will...
11 June 1990 T.I. (November 1990 Access Letter, ¶1537)
Where 50% of the shares of Corporation C are each owned by Corporation A and Corporation B and an individual (who previously owned 1/2 of the...
June 1990 Meeting with Alberta Institute of Chartered Accountants (November 1990 Access Letter, ¶1499, Q. 1)
Where a wholly-owned subsidiary of a corporation sells 60% of its common shares in a public offering, there has been no change of control if there...
19 March 1990 T.I. (August 1990 Access Letter, ¶1393)
Where one of the two 50% shareholders of a company sells his shares to an arm's length purchaser, a group of persons will be considered to have...
8 March 1990 T.I. (August 1990 Access Letter, ¶1393)
S.249(4) would apply to the Canadian branch of a U.K. company when control of the U.K. has been acquired.
16 January 1990 T.I. (June 1990 Access Letter, ¶1284)
The voting rights of a public corporation held by a Canadian-controlled private corporation increases from 45% to 55% as a result of the...
24 November 89 T.I. (April 90 Access Letter, ¶1188)
Where Mr. A is a sole shareholder of company A and Mr. A transfers all the shares of company A to company X in exchange for 55% of the voting...
18 October 89 Meeting with Quebec Accountants, Q.2 (April 90 Access Letter, ¶1166)
In the situation where A owns all the shares of a corporation and sells half of those shares to B, there would be an acquisition of control by a...
89 C.R. - Q.16
Where Mr. A, who owns 100% of the voting shares of Opco, sells 10% of the shares to Mr. B who deal at arm's length with Mr. A, there will not be...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(a) | 62 |
88 C.R. - Q.40
Where 1/2 of the shares of a corporation are owned by each of A and B, and B sells his shares to C, it will be a question of fact whether control...
IT-64R2 "Corporations
Association and Control"
Articles
Joel A. Nitikman, "Who Has De Jure Control of a Corporation When Its Shares Are Held by a Limited Partnership?", 2011 Canadian Tax Journal, Vol 59, p. 765
Argues that (at least where the shares of a subsidiary corporation held as partnership property are registered in the name of the limited...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) | 63 |
Jack Bernstein, "Corporate Control: An Evolving Canadian Concept", Tax Notes International, February 20, 2012, p. 597
Survey of jurisprudence on de jure control.
Robert Couzin, "Some Reflections on Corporate Control", 2005 Canadian Tax Journal, p. 305.
Ronit Florence, "Acquisition of Control of Canadian Resident Corporations: Checklist", Business Vehicles, Vol. V, No. 4, 1999, p. 262.
Ewens, "Acquisition of Control Issues and Secondary Offerings of Shares", Corporate Structures and Groups, Vol. IV, No. 1, 1996, p. 190.
Bernstein, "Canadian Implications of Control", Tax Profile, September 1995, Vol. 4, No. 27, p. 289.
Brown, "The Transfer of Property on Death: Ownership, Control and Vesting", 1994 Canadian Tax Journal, Vol. 42, No. 6, p. 1449.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | 0 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 0 |
"Group Control", 1992 Corporate Structures and Groups, Vol. 1, No. 1, p. 9.
Lahmer, "Acquisition-of-Control Rules", 1990 Corporate Management Tax Conference Report, c. 4
Contains checklist.
Tremblay, "Disposition of Foreign Affiliate: Year-end on Change of Control", Canadian Current Tax, February, 1990, page P3
It is not clear that s. 249(4) will apply to a disposition by one foreign affiliate of the shares of another foreign affiliate.
Harris, "Acquisition of Control", Practice Notes, Canadian Current Tax, February 1988, p. P11
General discussion of the consequences of an acquisition of control.
Subsection 249(4.1)
Administrative Policy
18 June 2015 STEP Roundtable Q. 1, 2015-0572131C6 - 2015 STEP Q1- Tax Year of Graduated Rate Estate
The executors adopt a first year-end for the estate of an individual who died on March 31, 2016, of September 30, 2016. The second and third...