The CRA addressed AOCs in Question 17 of the 2024 APFF Round Table. 50/50 shareholders of Opco (A and B) are presumed to act in concert to control Opco. If they sell one-third of Opco’s shares to a third person…
Bresse Syndics Inc.: De Jure Versus De Facto Control
In Bresse Syndics Inc. v R, 2021 FCA 115, the Court was asked whether “New CO2” was a CCPC. Its sole shareholder was a trust whose trustees, legally, had to be directors of a public corporation (with whom New CO2…
De facto control
Regarding de facto control, proposed subsection 256(5.11) overturns McGillivray Restaurant Ltd. (2016 FCA 99). The proposed subsection reads as follows: (5.11) Factual control—Interpretation. For the purposes of this Act, the determination of whether a taxpayer has, in respect of a…