Chapter

A post-spinoff amalgamation may taint the spin-off

From Colubriale v. Canada, 2005 FCA 329 by Un actionnaire vend un immeuble à sa société

Concepts

1. Continuity Rule

   "S. 55(3.01)(b), deeming an amalgamated corporation to be a continuation of each predecessor for s. 55(3)(a) purposes, can potentially preclude access to the s. 55(3)(a) safe harbour."

2. Spin-off Structure

   "Suppose that a wholly owned Holdco of an individual owns 100% of Opco and 70% of Subco, with the remaining 30% held by unrelated persons. In order to spin-off the 70% shareholding:\n\nthe individual