I-3, r. 1 - Regulation respecting the Taxation Act

Section 1027r7 Disposition versions

2012-09-01

1027R7. Subject to section 1027R8, where a subsidiary, within the meaning of section 556 of the Act, is wound up, and, during the winding-up, all or substantially all of its property is distributed to the parent corporation, the following rules apply:

(a)  in the case of the taxation year of the parent corporation during which the distribution of property took place, the first and the second basic provisional account of the subsidiary for its taxation year during which the distribution of property took place must be added respectively to the first and the second basic provisional account of the parent corporation;

(b)  in the case of the taxation year of the parent corporation following its taxation year referred to in paragraph a, to its first basic provisional account must be added the amount that is the proportion of the subsidiary’s first basic provisional account for the taxation year referred to in paragraph a that the number of complete months in the taxation year referred to in paragraph a of the parent corporation ending not later than the time of that distribution is of 12, and to its second basic provisional account must be added the first basic provisional account of the subsidiary for its taxation year referred to in paragraph a.

s. 1027R7; O.C. 2962-82, s. 84; O.C. 500-83, s. 84; O.C. 1707-97, s. 98; O.C. 134-2009, s. 1.