I-3 - Taxation Act

Section 545 Disposition versions

2006-03-01

545. (1)  The new corporation resulting from the amalgamation must include in computing its income or its taxable income all the amounts which would have been otherwise included in computing the income or the taxable income of the predecessor corporations.

(2)  The new corporation may deduct, for the purposes of computing its income or taxable income, all the amounts that would have been otherwise deductible when computing the income or taxable income of the predecessor corporations.

(3)  (Subsection repealed).

(4)  The new corporation is deemed, for the purposes of section 104.1 or 104.4, to have deducted in computing its income the aggregate of all amounts deducted under section 156.1 or 156.5, as the case may be, in computing the income of the predecessor corporations.

(5)  For the purposes of sections 741 to 744.2.2,

(a)  any taxable dividend received on a share that was deductible in computing the predecessor corporation’s taxable income for a taxation year under sections 738 to 745 or section 845 is deemed to be a taxable dividend received on the share by the new corporation that was deductible from the new corporation’s income for a taxation year under sections 738 to 745 or section 845, as the case may be;

(b)  any dividend, other than a taxable dividend, received on a share by the predecessor corporation is deemed to have been received on the share by the new corporation; and

(c)  a share acquired by the new corporation from a predecessor corporation is deemed to have been owned by the new corporation throughout any period of time throughout which it was owned by a predecessor corporation.

1972, c. 23, s. 423; 1975, c. 22, s. 127; 1981, c. 12, s. 2; 1989, c. 5, s. 71; 1989, c. 77, s. 59; 1995, c. 63, s. 40; 1997, c. 3, s. 71; 1997, c. 14, s. 83; 2000, c. 39, s. 31; 2001, c. 7, s. 53.