,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,canadian-,3troll$ ,private ,corpor,n
,numb]3 ,,it-#deh;,r#b
,date3 ,may #ca1 #bjjj
,ref];e3 ,! def9i;n ( 8,canadian-3troll$
  private corpor,n0 9 subsec;n #abe7#g7
  7al ! def9i;ns ( 8,canadian corpor,n10
  8private corpor,n10 & 8public
  corpor,n0 9 subsec;ns #hi7#a7 &
  #bdh7#a71 subsec;ns #abe7#a71
  #bea7#e71 #bef7#e.a71 #bef7#f7 (!
  ,9come ,tax ,act & sec;ns #cbjj1 #cbja
  & #fgjj (! ,9come ,tax ,regul,ns7

  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns reg>d+
c]ta9 provi.ns 3ta9$ 9 9come tax law4
,due 6_! te*nical nature1 ,,it's >e   #a
             ,,it-#deh;,r#b          a#a
us$ prim>ily 0\r /aff1 tax speciali/s1 &
o!r 9dividuals :o h an 9t]e/ 9 tax
matt]s4 ,= ^? r1d]s :o pref] a less
te*nical explan,n (! law1 we (f] o!r
public,ns1 s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publiciz$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4 ,if1
on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!   #b
             ,,it-#deh;,r#b          b#a
curr5t & subsequ5t tax,n ye>s or =
transac;ns 5t]$ 96af ! date on : ! *ange
is publiciz$4
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,director1 ,busi;s & ,public,ns
    ,divi.n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e
  
  ,an (ficial v].n ( ? ,,it w 2 availa#
on \r ,9t]net site at3
_+www.ccra-adrc.gc.ca_:

                 ,3t5ts
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n 7p>agraphs #a-i7
,app5dix
,explan,n ( ,*anges                   #c
               ,applic,n             c#a
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#deh;,r dat$ ,may #ca1
#aiia4

                ,summ>y
    
  ,? bullet9 expla9s ! m1n+ (a
,canadian-3troll$ private corpor,n
7,,ccpc7 &! require;ts t m/ 2 met =a
corpor,n 6be a ,,ccpc4 ,! app5dix 6?
bullet9 provides examples ( situ,ns :
illu/rate :e!r corpor,ns meet !
require;ts 6be 3sid]$ a ,,ccpc4 ,a
,,ccpc is a special type ( private
corpor,n t is al a ,canadian corpor,n4
,9 ord] 6qualify z a ,,ccpc x m/ n 2
3troll$1 directly or 9directly 9 any
mann] :at"e1 0public corpor,ns1 non-
resid5ts or a -b9,n (! two4
  ,9 _m respects1 x is advantage\s =a
corpor,n & xs %>ehold]s t ! corpor,n
qualify z a ,,ccpc4 ,"s ( ^! advantages1
                                      #d
             ,,it-#deh;,r#b          d#a
: >e prim>ily design$ 6assi/ small
busi;ses1 9clude3
    --a3ess 6! small busi;s deduc;n2
    --an a4i;nal mon? 6pay ! bal.e (
      taxes paya# "u ,"ps ;,i1 ,i4#c1
      ,,vi & ,,vi4#a =! ye>2
    --5h.ed 9ve/;t tax cr$its1 : may 2
      fully refunda#1 = _! qualifi$
      exp5ditures on sci5tific rese>* &
      exp]i;tal develop;t2
    --%>ehold] 5title;t 6! capital ga9s
      exemp;n on ! 4posi;n ( qualifi$
      small busi;s corpor,n %>es2 &
    --def]ral ( an employee's taxa#
      b5efit >is+ f ! ex]cise ( /ock
      op;ns grant$ 0a ,,ccpc4
--------------------------------------#b
  ,9 _m ( ^! situ,ns x is nec t !
corpor,n 2 a ,,ccpc "?\t ! "picul> tax,n
ye>4 ,3sequ5tly1 ! advantages ( ,,ccpc
/atus may n 2 availa# 9 ! ye> a corpor,n
2comes or c1ses 6be a ,,ccpc4
,fur!rmore1 c]ta9 ( ^! advantages may 2
re/rict$ or unavaila# if ! ,,ccpc     #e
             ,,it-#deh;,r#b          a#b
is "p ( an associat$ gr\p 7see ! curr5t
v].n ( ,,it-#fd1 ,corpor,ns3 ,associ,n &
,3trol--,af #aihh74
  ,= m 9=m,n on ! advantages ( ,,ccpc
/atus1 pl1se ref] 6! curr5t v].ns (
9t]pret,n bullet9s3
  ,,it-#gc ,! ,small ,busi;s ,deduc;n
  ,,it-#aac ,b5efits 6,employees--,/ock
    ,op;ns
  ,,it-#aea ,sci5tific ,rese>* &
    ,exp]i;tal ,develop;t ,exp5ditures
  
          ,4cus.n & ,9t]pret,n
            7p>agraphs #a-i7
    
#a4 ,a ,,ccpc is def9$ 9 subsec;n
  #abe7#g74 ,"u ! op5+ ^ws ( ? def9i;n1
  a corpor,n m/ 2 a ,canadian corpor,n
  &a private corpor,n z ^? t]ms >e def9$
  "u subsec;n #hi7#a74 ,a corpor,n
  resid5t 9 ,canada t has a class ( %>es
  li/$ on a prescrib$ /ock ex*ange 9
  ,canada is n 3sid]$ 6be a private
  corpor,n &1 "!=e1 _c 2 3sid]$ 6be   #f
             ,,it-#deh;,r#b          b#b
  a ,,ccpc4 ,9 a4i;n1 "u p>agraph 7c7 (!
  def9i;n (a ,,ccpc1 a corpor,n t has a
  class ( %>es li/$ on a =eign /ock
  ex*ange li/$ 9 sec;n #cbja (!
  ,regul,ns1 w 2 prev5t$ f qualify+ z a
  ,,ccpc af #aiie4 ,! curr5t v].n (
  ,,it-#cia1 ,/atus ( ,corpor,ns1
  4cusses ! m1n+ ( private & public
  corpor,ns =! purposes (! ,act4
  ,p>agraph 7a7 (! def9i;n (a ,,ccpc
  provides t ! corpor,n m/ n 2 83troll$1
  directly or 9directly 9 any mann]
  :at"e0 7see p>agraph #h7 0"o or m non-
  resid5t p]sons 7non-resid5ts71 "o or m
  public corpor,ns 7o!r ?an a prescrib$
  v5ture capital corpor,n )9 ! m1n+ (
  sec;n #fgjj (! ,regul,ns71 or any
  -b9,n ( non-resid5ts & public
  corpor,ns4 ,! 3trol te/ ref]r$ 6in !
  def9i;n ( ,,ccpc 5visages situ,ns ":
  ov] #ej@3p (! %>es (a corpor,n >e [n$
  0"o or m non-resid5ts or 0"o or m
  public corpor,ns reg>d.s ( :e!r or n a
  3troll+ gr\p c 2 id5tifi$4 ,6t      #g
             ,,it-#deh;,r#b          c#b
  5d1 p>agraph 7b7 (! def9i;n (a ,,ccpc
  cl>ifies t1 af #aiie1 a corpor,n is
  prev5t$ f 2+ a ,,ccpc if ! corpor,n
  wd1 if ea* %>e (! capital /ock (a
  corpor,n t is [n$ 0a non-resid5t p]son
  or a public corpor,n 7o!r ?an a
  prescrib$ v5ture capital corpor,n7 7
  [n$ 0a "picul> p]son1 2 3troll$ 0t
  "picul> p]son4
#b4 ,x is n nec t a corpor,n 2 3troll$
  0,canadian resid5ts1 private corpor,ns
  or a -b9,n "!(1 9 ord] 6qualify z a
  ,,ccpc4 ,= example1 if an 9dividual
  resid5t 9 ,canada 3trols #ej@3p (!
  vot+ "rs (! %>es (a ,canadian corpor,n
  t is a private corpor,n1 norm,y1 no
  o!r p]son or gr\p ( p]sons 7i4e4
  public corpor,ns &/or non-resid5ts7 wd
  3trol ! corpor,n = purposes (! def9i;n
  (a ,,ccpc "u subsec;n #abe7#g74 ,h["e1
  ? wd n 2 ! case if 3trol 0non-resid5ts
  or public corpor,ns exi/s z a result (
  hold+ a "r z describ$ 9 p>agraph
  #bea7#e77b7 & 4cuss$ 9 p>agraphs    #h
             ,,it-#deh;,r#b          d#b
  #e or #f1 or 2c (! exi/;e ( de facto
  3trol 0non-resid5ts or public
  corpor,ns z describ$ 9 subsec;n
  #bef7#e.a7 & 4cuss$ 9 p>agraph #h4
  ,see ,example #a4
#c4 ,if a ,canadian corpor,n is 3troll$
  0ano!r corpor,n resid5t 9 ,canada1 :
  is xf 3troll$ 0a non-resid5t or 0a
  public corpor,n1 ! ,canadian corpor,n
  _c qualify z a ,,ccpc 2c x is
  9directly 3troll$ 0a non-resid5t or a
  public corpor,n4 ,al1 if ! corpor,n is
  3troll$ 0a non-resid5t corpor,n t is
  xf 3troll$ 0a ,,ccpc1 x w n qualify z
  a ,,ccpc 2c x is directly 3troll$ 0a
  non-resid5t corpor,n4 ,see ,examples
  #b1 #c & #d4

,note3
  ,if draft legisl,n rel1s$ on ,novemb]
  #cj1 #aiii1 is 5act$ z curr5tly
  propos$1 new subsec;n #bef7#f.a7 (!
  ,act--9troduc$ 9 response 6! deci.n (!
  ,f$]al ,c\rt ( ,app1l 9 ,p>!non     #i
             ,,it-#deh;,r#b          e#b
  ,9ve/;ts ,ltd4 v4 ,! ,que51 #ig
  ,d4,t4,c4 #ecdc1 ,7#aiig7' #c
  ,c4,t4,c4 #aeb--w apply 6specify1 =
  grt] c]ta9ty1 t a corpor,n may 2
  3troll$ simultane\sly 0p]sons or gr\ps
  at m ?an "o level abv x 9 a corporate
  *a94 ,propos$ p>agraph #bef7#f.a77a7
  specifies t1 ": a subsidi>y wd 2
  3troll$ 0xs p>5t if ! p>5t 7 n xf
  3troll$ 0any o!r p]son or gr\p1 !
  subsidi>y is 3sid]$ 6be 3troll$ bo? 0!
  p>5t & 0! p]son or gr\p t 3trols !
  p>5t4 ,propos$ p>agraph #bef7#f.a77b7
  is a rule ( simil> e6ect t applies ":
  ! subject corpor,n wd 2 3troll$ 0a
  gr\p 7! 8f/-ti] gr\p07 if no memb] (!
  f/-ti] gr\p 7 xf 3troll$ 0a ?ird "py4
  ,9 t case1 ! subject corpor,n is
  3sid]$ 6be 3troll$ bo? 0! f/-ti] gr\p1
  & 0any hi<]-ti] gr\p1 ei ! memb] or a
  p]son or gr\p 0:om ! memb] is 3troll$4
  ,if "o p]son 3trols all memb]s (! f/-
  ti] gr\p1 t p]son wd 3/itute a hi<]-
  ti] gr\p4                          #aj
             ,,it-#deh;,r#b          f#b
  ,propos$ subsec;n #bef7#f.b7 (! ,act
  specifies t ! rule reg>d+ simultane\s
  3trol 9 new subsec;n #bef7#f.a7 al
  applies 6! 3cept ( de facto 3trol4
#d4 ,a corpor,n c 2come1 or c1se 6be1 a
  ,,ccpc if 3trol *anges or ! /atus (!
  "pies :o 3trol ! corpor,n *anges4 ,=
  example1 a ,canadian corpor,n t wd 2 a
  ,,ccpc 7except =! fact t x is 3troll$
  0non-resid5ts7 w 2come a ,,ccpc if a
  su6ici5t numb] ( %>ehold]s 2come
  resid5ts ( ,canada s t n m ?an #ej@3p
  (! vot+ "rs (! %>es >e 3troll$ 0non-
  resid5ts4 ,? is s1 :e!r ! %>ehold]s
  actu,y 2come resid5ts ( ,canada or >e
  deem$ "u p>agraph #bej7#a77a7 6h be5
  resid5t 9 ,canada "?\t ! ye>4
  ,simil>ly1 if a su6ici5t numb] (
  ,canadian resid5t %>ehold]s (a ,,ccpc
  2come non-resid5ts s t non-resid5ts
  3trol m ?an #ej@3p (
--------------------------------------#c
  ! vot+ "rs (! %>es1 ! corpor,n w c1se
  6be a ,,ccpc4                      #aa
             ,,it-#deh;,r#b          a#c
#e4 ,p>agraph #bea7#e77b7 provides
  special rules 9 det]m9+ :e!r or n a
  corpor,n qualifies z a ,,ccpc4
  ,subp>agraph #bea7#e77b77;i7 provides
  t if1 at any "t1 a p]son has a "r "u a
  3tract1 9 equ;y or o!rwise1 ei immly
  or 9 ! future & ei absolutely or
  3t+5tly1 to1 or 6acquire1 %>es (!
  capital /ock (a corpor,n1 or 63trol !
  vot+ "rs ( s* %>es1 t p]son is deem$
  6h ! same posi;n 9 rel,n 6! 3trol (!
  corpor,n z if t p]son [n$ ! %>es at t
  "t4 ,= example1 if a public corpor,n
  or non-resid5t acquires an op;n
  6pur*ase m ?an #ej@3p (! vot+ %>es (
  :at wd o!rwise 2 a ,,ccpc1 ! public
  corpor,n or non-resid5t is deem$1
  0virtue ( subp>agraph #bea7#e77b77;i71
  63trol ! corpor,n4 ,? wd cause !
  corpor,n 6lose xs /atus z a ,,ccpc4
  ,see ,example #e4


                                     #ab
             ,,it-#deh;,r#b          b#c
#f4 ,subp>agraph #bea7#e77b77;ii7
  provides t if1 at any "t1 a p]son has
  a "r "u a 3tract1 9 equ;y or o!rwise1
  ei immly or 9 ! future & ei absolutely
  or 3t+5tly1 6cause a corpor,n 6redeem1
  acquire1 or c.el any %>es ( xs capital
  /ock [n$ 0o!r %>ehold]s1 t p]son is
  deem$ 6h ! same posi;n 9 rel,n 63trol
  (! corpor,n z if ! %>es 7 redeem$1
  acquir$1 or c.ell$ 0! corpor,n at t
  "t4 ,?us1 ? subp>agraph may al apply
  6d5y /atus z a ,,ccpc if a public
  corpor,n or non-resid5t has a 8"r0
  pursuant 6subp>agraph
  #bea7#e77b77;ii74

  ,"u subp>agraph #bea7#e77b77;iii71 if1
  at any "t af ,april #bf1 #aiie1 a
  p]son has a "r "u a 3tract1 9 equ;y or
  o!rwise1 ei immly or 9 ! future & ei
  absolutely or 3t+5tly1 to1 or 6acquire
  or 3trol1 vot+ "rs 9 respect ( %>es (!
  capital /ock (a corpor,n1 t p]son is
  deem$ 6h ! same posi;n 9 rel,n     #ac
             ,,it-#deh;,r#b          c#c
  6! 3trol (! corpor,n z if t p]son cd
  ex]cise ! vot+ "rs at t "t4

  ,subp>agraph #bea7#e77b77;iv7 provides
  t if1 at any "t af ,april #bf1 #aiie1
  a p]son has a "r "u a 3tract1 9 equ;y
  or o!rwise1 ei immly or 9 ! future &
  ei absolutely or 3t+5tly1 6cause !
  reduc;n ( vot+ "rs 9 respect ( %>es (!
  capital /ock (a corpor,n t >e [n$ 0o!r
  %>ehold]s1 t p]son wd 2 deem$ 6h !
  same posi;n 9 rel,n 6! 3trol (!
  corpor,n z if ! vot+ "rs 7 s reduc$ at
  t "t4
#g4 ,"! >e excep;ns 6! rules 9 p>agraph
  #bea7#e77b74 ,! provi.ns ( p>agraph
  #bea7#e77b7 w n apply if "o or m (!
  "rs describ$ "!9 >e n ex]cisa# until !
  d1?1 bankruptcy or p]man5t 4abil;y (
  an 9dividual4 ,?us1 p>agraph
  #bea7#e77b7 does n apply if a p]son
  has a "r1 = example1 6acquire %>es "u
  a survivor%ip agree;t4
                                     #ad
             ,,it-#deh;,r#b          d#c
#h4 ,! 3cept ( 3trol (a corpor,n is
  p>am.t 9 det]m9+ :e!r ! corpor,n is a
  ,,ccpc4 ,! ^w 83trol0 is n def9$ 9 !
  ,act4 ,! t]m 3trol usu,y 3templates !
  "r ( 3trol t re/s 9 [n]%ip ( s* a
  numb] ( %>es z c>ries ) x ! "r 6a
  major;y (! votes 9 ! elec;n (! bo>d (
  directors4 ,s* 3trol is -monly ref]r$
  6z de jure 3trol4 ,h["e1 ! expres.n
  83troll$1 directly or 9directly 9 any
  mann] :at"e0 7see p>agraph #a7 t is
  f.d 9 ! def9i;n (a ,,ccpc has an
  ext5d$ m1n+ = purposes (! ,act 0virtue
  ( subsec;n #bef7#e.a74 ,"u subsec;n
  #bef7#e.a71 a corpor,n is 3sid]$ 6be
  3troll$1 directly or 9directly 9 any
  mann] :at"e1 0ano!r corpor,n1 a p]son
  or a gr\p ( p]sons 7! 83troll]07 if !
  3troll] has any direct or 9direct
  9flu;e t1 if ex]cis$1 wd result 9
  3trol 9 fact (! corpor,n 7de facto
  3trol74 ,9 ord] 6det]m9e :e!r or n "!
  exi/s s* 9flu;e t1 if ex]cis$1 wd
  result 9 3trol (a corpor,n1 x wd   #ae
             ,,it-#deh;,r#b          e#c
  2 nec 6review all (! facts 9 ea*
  situ,n4 ,an example ( de facto 3trol
  mi<t 2 a situ,n 9 : a p]son held a
  significant por;n1 b less ?an #ej@3p1
  (! vot+ 3trol (a corpor,n &! bal.e 0
  widely 4p]s$ am;g _m employees (!
  corpor,n or 0 held 0p]sons :o cd
  r1sonably 2 3sid]$ 6act 9 respect (!
  corpor,n 9 a3ord.e ) 8 or h] wi%es4
  ,an excep;n 6! rules 9 subsec;n
  #bef7#e.a7 is provid$ :5 ! corpor,n &!
  3troll] >e d1l+ at >m's l5g? &!
  3troll]'s 9flu;e is deriv$ f an
  agree;t or >range;t s* z a fran*ise1
  lic5se1 l1se1 4tribu;n1 supply or
  manage;t agree;t1 ! ma9 purpose ( : is
  6gov]n ! rel,n%ip 2t ! "pies reg>d+ !
  mann] 9 : a busi;s c>ri$ on 0!
  corpor,n is 6be 3duct$4 ,=a m detail$
  4cus.n (! m1n+ ( 83trol10 see ! curr5t
  v].n ( ,,it-#fd1 ,corpor,ns3 ,associ,n
  & ,3trol--,af #aihh4
#i4 ,if ! provi.ns ( subsec;n #bef7#f7
  >e met1 a corpor,n t 3trols1       #af
             ,,it-#deh;,r#b          f#c
  directly or 9directly 9 any mann]
  :at"e ano!r corpor,n at a "picul> "t w
  2 deem$ n 63trol t corpor,n at t "t4
  ,? "picul> provi.n may h applic,n :51
  = example1 a manufactur+ corpor,n : is
  a public corpor,n or a corpor,n
  3troll$ 0non-resid5ts1 e/abli%es
  4tributor%ips 9 ,canada4 ,? is usu,y
  e6ect$ 0cr1t+ a corpor,n 9 s* a mann]
  t ! ,canadian op]ator or 4tributor w n
  acquire actual 3trol ( x until c]ta9
  f9ancial oblig,ns 6! manufactur] >e
  met4 ,:5 all (! provi.ns ( subsec;n
  #bef7#f7 >e met1 ! newly cr1t$
  corpor,n w 2 a ,,ccpc f ! "t (
  9corpor,n if ! o!r 3di;ns (! def9i;n
  (a ,,ccpc "u subsec;n #abe7#g7 >e met4
--------------------------------------#d
                ,app5dix
    
  ,! purpose (! foll[+ examples is
69dicate :5 a corpor,n is 3troll$1
directly or 9directly 9 any mann] :at"e1
0"o or m non-resid5t p]sons1 "o or   #ag
             ,,it-#deh;,r#b          a#d
m public corpor,ns 7o!r ?an prescrib$
v5ture capital corpor,ns7 or 0a -b9,n
"!(4 ,x is assum$ t ! o!r crit]ia (!
def9i;n (a ,,ccpc "u subsec;n #abe7#g7
>e met4 ,un.s o!rwise 9dicat$1 p]c5tages
%[n 9dicate ! p]c5tage (! vot+ %>es held
9 ! corpor,n 0! "picul> p]son or gr\p (
p]sons4

#a4 ,public corpor,ns &/or non-resid5ts
  7#ej@3p7 g 6,corpor,n ;,a
  ,resid5ts 7#ej@3p7 g 6,corpor,n ;,a

  ,corpor,n ;,a is a ,,ccpc 2c x is n
  3troll$ 0non-resid5ts1 public
  corpor,ns or a -b9,n ( non-resid5ts &
  public corpor,ns4 ,! abv result
  assumes t 3trol does n exi/ 0virtue (!
  hold+ (a "r "u p>agraph #bea7#e77b7 or
  0! exi/;e ( de facto 3trol "u subsec;n
  #bef7#e.a74
#b4 ,non-resid5ts &/or ,public corpor,ns
  #ea@3p g 6,canadian corpor,n
  #ajj@3p g 6,corpor,n ;,a           #ah
             ,,it-#deh;,r#b          b#d
  ,corpor,n ;,a is n a ,,ccpc 2c x is
  9directly 3troll$ 0non-resid5ts &/or
  public corpor,ns4
#c4 ,canadian corpor,n t is a private
  corpor,n
  #ea@3p g 6,non-resid5t corpor,n
  #ea@3p g 6,corpor,n ;,a

  ,corpor,n ;,a is n a ,,ccpc 2c x is
  directly 3troll$ 0a non-resid5t
  corpor,n4 ,! fact t ! non-resid5t
  corpor,n is xf directly 3troll$ 0a
  ,canadian corpor,n t is a private
  corpor,n is n relevant4
#d4 ,canadian corpor,n t is a private
  corpor,n
  #ea@3p g 6,non-resid5t corpor,n
  #ea@3p g 6,canadian corpor,n t is a
  private corpor,n
  #ea@3p g 6,corpor,n ;,a

  ,corpor,n ;,a is n a ,,ccpc 2c x is
  9directly 3troll$ 0a non-resid5t
  corpor,n4 ,! fact t ,corpor,n      #ai
             ,,it-#deh;,r#b          c#d
  ;,a is 3troll$ bo? directly &
  9directly 0,canadian corpor,ns t >e
  private corpor,ns does n negate ! fact
  t x is al 9directly 3troll$ 0a non-
  resid5t corpor,n = purposes (! def9i;n
  (a ,,ccpc4
#e4 ,public corpor,n &/or ,non-resid5ts
  7pubco7
  #ajj@3p pref]r$ %>es 7non-vot+71
  3v]ti# 96-mon %>es at any "t g
  6,corpor,n ;,a 7;,a ,co47
,resid5ts
  #ej@3p -mon %>es g 6,corpor,n ;,a 7;,a
  co47

  ;,a ,co4 is n a ,,ccpc 2c (! 8"r0 (
  ,pubco 63v]t xs pref]r$ %>es 6-mon
  %>es4 ,? "r places ,pubco 9 ! same
  posi;n1 9 rel,n 63trol ( ;,a ,co41 z
  if x [n$ ! ;,a ,co4 -mon %>es 6: !
  pref]r$ %>es >e 3v]ti# 0r1son (
  subp>agraph #bea7#e77b77;i74 ,"!=e1
  s9ce ,pubco [ns #ej@3p (! -mon %>es &
  has ! "r 6acquire a4i;nal -mon     #bj
             ,,it-#deh;,r#b          d#d
  %>es t1 :5 tak5 tgr )! -mon %>es x alr
  [ns1 a7regate m ?an #ej@3p (! total
  -mon %>es issu$ & \t/&+ ( ;,a ,co41
  ,pubco is 3sid]$ 63trol ;,a ,co4
--------------------------------------#e
#f4 ,public corpor,ns
  #cj@3p -mon %>es g 6,corpor,n ;,a 7;,a
  ,co47
,non-resid5ts
  #cj@3p -mon %>es g 6,corpor,n ;,a 7;,a
  ,co47
,resid5ts
  #dj@3p -mon %>es g 6,corpor,n ;,a 7;,a
  ,co47

  ,al? ! %>es ( ;,a ,co4 >e widely 4p]s$
  am;g public corpor,ns & non-resid5ts t
  >e likely n act+ tgr 6ex]cise 3trol (
  ;,a ,co41 ;,a ,co4 is n a ,,ccpc4 ,?
  is 2c if ! %>es ( ;,a ,co4's capital
  /ock t >e [n$ 0! non-resid5ts & 0!
  public corpor,n 7 [n$ 0! same p]son1
  ;,a ,co4 wd 2 3troll$ 0t p]son4
                                     #ba
             ,,it-#deh;,r#b          a#e
#g4 ,non-resid5t
  #cc.cc@3p -mon %>es g 6,corpor,n ;,a
  7;,a ,co47
,non-resid5t
  #ajj@3p -mon %>es g 6,canadian
  corpor,n
  #cc.cc@3p -mon %>es g 6,corpor,n ;,a
  7;,a ,co47
,resid5t
  #cc.cc@3p -mon %>es g 6,corpor,n ;,a
  7;,a ,co47

  ;,a ,co4 is n a ,,ccpc 2c if ! %>es (
  xs capital /ock &(! capital /ock (
  ,canadian corpor,n t >e [n$ 0non-
  resid5ts 7 [n$ 0! same p]son1 t p]son
  wd 3trol ;,a ,co4






                                     #bb
          ,explan,n ( ,*anges         #f
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$
9t]pret,ns4

                ,ov]view
    
  ,? bullet9 d1ls )! def9i;n (
8,canadian-3troll$ private corpor,n0
7,,ccpc7 9 subsec;n #abe7#g74 ,x 4cusses
! 3di;ns t a corpor,n m/ meet 6be 3sid]$
6be a ,,ccpc & provides examples t %[
:e!r ^! 3di;ns >e met4 ,we h revis$ ?
bullet9 6reflect ! am5d;ts 6! ,act z
5act$ 0,s4,c4 #aiid1 c4 #g1 ,s*$ule ,,ii
7#aiia c4 #di--=m]ly ,bill ;,c-#ah7 &
,s4,c4 #aiih c4 #ai 7=m]ly ,bill
;,c-#bh74 ,draft legisl,n rel1s$
                                     #bc
             ,,it-#deh;,r#b          a#f
  ,novemb] #cj1 #aiii is reflect$ 9 an
italiciz$ note foll[+ p>agraph #c4

      ,legislative & ,o!r ,*anges
    
  ,"?\t ! bullet91 we h made m9or *anges
= cl>ific,n or r1dabil;y purposes4 ,we h
al elim9at$ previ\s transi;nal provi.ns
t 7 no l;g] relevant4
  ,! 4cus.n (! small busi;s deduc;n has
be5 3solidat$ 9 ! ,summ>y s t ! ,4cus.n
& ,9t]pret,n por;n (! bullet9 only
4cusses ! require;ts =a corpor,n 6be
3sid]$ a ,,ccpc4 ,9 a4i;n1 we h exp&$ !
,summ>y 6\tl9e "s (! o!r advantages t
may 2 availa# 6a ,,ccpc & xs %>ehold]s4
  ,p>agraph #a has be5 revis$ 69clude a
ref];e to ,,it-#cia1 ,/atus (
,corpor,ns1 = m 9=m,n on ! m1n+ (
private & public corpor,ns4 ,we h al
revis$ ? p>agraph 64cuss *anges 6!
legisl,n applica# af #aiie t am5d !
def9i;n (a ,,ccpc 6exclude a corpor,n ^:
%>es >e li/$ on a =eign /ock         #bd
             ,,it-#deh;,r#b          b#f
ex*ange4 ,! am5d;t al cl>ifies t a
corpor,n w n 2 3sid]$ 6be a ,,ccpc if x
wd1 if ea* %>e (! capital /ock (a
corpor,n t is [n$ 0a non-resid5t p]son
or a public corpor,n 7o!r ?an a
prescrib$ v5ture capital corpor,n7 7 [n$
0a "picul> p]son1 2 3troll$ 0t "picul>
p]son4
  ,an italiciz$ note has be5 a4$
6p>agraph #c 6reflect draft legisl,n
rel1s$ on ,novemb] #cj1 #aiii1 :
specifies t a corpor,n may 2 3troll$
simultane\sly 0p]sons or gr\ps at m ?an
"o level abv x 9 a corporate *a94
  ,p>agraph #d has be5 revis$ 6cl>ify t
! provi.ns ( p>agraph #bej7#a77a7 t deem
a p]son 6be a resid5t ( ,canada "?\t a
"picul> tax,n ye>1 may a6ect a
corpor,n's /atus z a ,,ccpc4
  ,new p>agraphs #f & #g 7 =m]ly !
second & ?ird p>agraphs ( =m] p>agraph
#f4 ,we h revis$ p>agraph #f 64cuss !
am5d;ts t 9troduce new subp>agraphs
#bea7#e77b77;iii7 & 7;iv74 ,^!       #be
             ,,it-#deh;,r#b          c#f
subp>agraphs provide t two a4i;nal k9ds
( "rs wd place _! hold] 9 ! same posi;n
9 rel,n 6! 3trol (! corpor,n z if ! "rs
7 ex]cis$4
  ,new p>agraph #g has be5 revis$
6reflect ! am5d;t 6p>agraph #bea7#e77b7
: ext5d$ ! scope (! excep;n 9 ? p>agraph
69clude1 9 a4i;n 63tractual "rs1 equita#
"rs & o!r "rs n yet ex]cisa# 2c _!
ex]cise is 3t+5t ^u ! d1?1 bankruptcy or
p]man5t 4abil;y ( an 9dividual4
  ,new p>agraphs #h & #i >e =m] p>agraph
#h & #g respectively4 ,new p>agraph #h 0
exp&$ 6-plete ! 4cus.n on ! 3cepts ( de
jure & de facto 3trol4 ,we h al expla9$
t x is a "q ( fact z 6:e!r "! exi/s
9flu;e t1 if ex]cis$1 wd result 9 3trol
(! corpor,n4
  ,we h a4$ two new examples 6!
,app5dix4 ,! f/ "o we a4$ illu/rates !
situ,n ": a corpor,n is n a ,,ccpc 2c !
corpor,n wd1 if ! %>es ( xs capital /ock
t >e [n$ 0non-resid5ts & 0public
corpor,n 7 [n$ 0! same p]son1 2      #bf
             ,,it-#deh;,r#b          d#f
3troll$ 0t p]son4 ,! la/ example (!
,app5dix illu/rates ! situ,n ": a
corpor,n is n a ,,ccpc 2c ! corpor,n wd1
if ! %>es (! capital /ock ( any corpor,n
t >e [n$ 0non-resid5ts & 0public
corpor,ns 7 [n$ 0! same p]son1 2 3troll$
0t p]son4
















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