Chapter

A post-spinoff amalgamation may taint the spin-off

From Chopp v. R., 98 DTC 6014, [1998] 1 CTC 407 (FCA) by Sambif

Concepts

1. Safe Harbour

   "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.\n\nSuppose that

2. Continuity Rule

   "However if, as a final step, Newco and Subco amalgamate, s. 55(3)(a)(ii) instead will be triggered because the unrelated persons, by receiving shares of Amalco, will effectively be deemed under s. 55