I-3 - Taxation Act

Section 550.9 Disposition versions

2006-03-01

550.9. Where at any time there is an amalgamation of a corporation, in this section referred to as the “parent”, and one or more other corporations, each of which is a subsidiary wholly-owned corporation of the parent, the following rules apply:

(a)  the shares of each subsidiary are deemed to have been disposed of by the parent immediately before the amalgamation for proceeds equal to the proceeds that would be determined under section 558 if sections 556 to 564.1 and 565 applied, with the necessary modifications, to the amalgamation; and

(b)  the cost to the new corporation formed on an amalgamation of each capital property of each subsidiary acquired on the amalgamation is deemed to be the amount that would have been the cost to the parent of the property if the property had been distributed at that time to the parent on a winding-up of the subsidiary and sections 556 to 564.1 and 565 had applied to the winding-up.

2001, c. 7, s. 55.