I-3 - Taxation Act

Section 19 Disposition versions

2006-03-01

19. (1)  For the purposes of this Part, related persons or persons related to each other are

(a)  individuals connected by blood relationship, marriage or adoption;

(b)  a corporation and

i.  a person who controls that corporation,

ii.  a person who is a member of a related group that controls the corporation, or

iii.  a person related to the person contemplated by subparagraph i or ii;

(c)  any two corporations

i.  if they are controlled by the same person or group of persons,

ii.  if each of them is controlled by a person and that person who controls one of the corporations is related to the person who controls the other corporation,

iii.  if one of them is controlled by a person related to any member of a related group that controls the other,

iv.  if one of the corporations is controlled by a person related to each member of an unrelated group that controls the other,

v.  if any member of a related group that controls one of the corporations is related to each member of an unrelated group that controls the other, or

vi.  if each member of an unrelated group that controls one of the corporations is related to at least one member of an unrelated group that controls the other.

(2)  Two corporations related to the same corporation under subsection 1 are deemed, for the purposes of subsection 1 and section 18, to be related to each other.

(3)  Where there has been an amalgamation or merger of two or more particular corporations and the new corporation formed as a result of the amalgamation or merger would have been related to any of the particular corporations immediately before the amalgamation or merger if the new corporation were in existence at that time, and if the persons who were the shareholders of the new corporation immediately after the amalgamation or merger were the shareholders of the new corporation at that time, the new corporation and that particular corporation shall be deemed to have been related persons.

(4)  Where there has been an amalgamation or merger of two or more particular corporations each of which was related, otherwise than because of a right referred to in paragraph b of section 20, to each other immediately before the amalgamation or merger, the new corporation formed as a result of the amalgamation or merger and each of the particular corporations are deemed to have been related to each other.

1972, c. 23, s. 14; 1984, c. 15, s. 4; 1989, c. 5, s. 23; 1997, c. 3, s. 71; 2000, c. 5, s. 9.