I-3 - Taxation Act

Section 556 Disposition versions

2006-03-01

556. Notwithstanding any other provision of this Part other than section 427.4, the rules set forth in this chapter apply to the winding-up after 6 May 1974 of a taxable Canadian corporation not less than 90% of the issued shares of each class of the capital stock of which were, immediately before the winding-up, owned by another taxable Canadian corporation, and the balance of the shares of which were owned by persons with whom the other corporation was dealing at arm’s length.

In this chapter, the wound-up corporation is called the “subsidiary” while the other corporation owning the shares is called “parent”.

1972, c. 23, s. 434; 1975, c. 22, s. 137; 1980, c. 13, s. 55; 1982, c. 5, s. 126; 1989, c. 77, s. 61; 1997, c. 3, s. 71.