I-3 - Taxation Act

Section 555.0.1 Disposition versions

2006-03-01

555.0.1. In this chapter, “foreign merger” means a merger or combination of corporations each of which was, immediately before the merger or combination, resident in a country other than Canada, each of which is in this chapter referred to as a “predecessor foreign corporation”, to form one corporate entity resident in a country other than Canada, in this chapter referred to as the “new foreign corporation”, in such a manner that, by reason of the merger or combination and otherwise than as a result of the distribution of property to one corporation on the winding-up of another corporation,

(a)  all or substantially all of the property, except any amount receivable from any predecessor foreign corporation or share of the capital stock of any predecessor foreign corporation, of the predecessor foreign corporations immediately before the merger or combination becomes property of the new foreign corporation;

(b)  all or substantially all of the liabilities, except any amount payable to any predecessor foreign corporation, of the predecessor foreign corporations immediately before the merger or combination become liabilities of the new foreign corporation; and

(c)  all or substantially all of the shares of the capital stock of the predecessor foreign corporations, except any shares or options owned by any predecessor foreign corporation, are exchanged for or become shares of the capital stock of

i.  the new foreign corporation, or

ii.  another corporation resident in a country other than Canada, in this chapter referred to as the “foreign parent corporation”, if, immediately after the merger, the new foreign corporation was controlled by the foreign parent corporation.

1984, c. 15, s. 117; 1997, c. 3, s. 71; 2001, c. 53, s. 83; 2004, c. 8, s. 111.