I-3 - Taxation Act

Full text
6.1.1. If at a particular time a corporation becomes or ceases to be a Canadian-controlled private corporation, otherwise than because of an acquisition of control to which section 6.2 would, but for this section, apply and subsections 3.1 and 4 of section 249 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) do not apply to the corporation in respect of the change of status, the following rules apply:
(a)  the corporation’s taxation year that would, but for this section, include the particular time is deemed to end immediately before that time; and
(b)  a new taxation year of the corporation is deemed to begin at the particular time and end at the time at which the corporation’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ends.
Chapter V.2 applies in relation to an election made under subparagraph iii of paragraph c of subsection 3.1 of section 249 of the Income Tax Act.
2009, c. 5, s. 10.