Marginal note:Closely related corporation
128 (1) For the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that time the particular corporation is resident in Canada and is a registrant and at that time
(a) the other corporation is resident in Canada and is a registrant and not less than 90% of the value and number of the issued and outstanding shares of the capital stock of the other corporation, having full voting rights under all circumstances, are owned by
(i) the particular corporation,
(ii) a qualifying subsidiary of the particular corporation,
(iii) a corporation of which the particular corporation is a qualifying subsidiary,
(iv) a qualifying subsidiary of a corporation of which the particular corporation is a qualifying subsidiary, or
(v) any combination of the corporations or subsidiaries referred to in subparagraphs (i) to (iv),
(vi) [Repealed, 1993, c. 27, s. 12]
(b) the other corporation is a prescribed corporation in relation to the particular corporation,
and, for the purposes of this section, a non-resident insurer that has a permanent establishment in Canada shall be deemed to be resident in Canada.
Marginal note:Idem
(2) Where under subsection (1) two corporations resident in Canada are closely related to the same corporation, or would be so related if all of the corporations were resident in Canada, they are closely related to each other for the purposes of this Part.
Marginal note:Credit unions and members of mutual insurance groups
(3) For the purposes of this section,
(a) a credit union and a member of a mutual insurance group shall each be deemed to be a registrant; and
(b) an investment fund that is a member of a mutual insurance group shall be deemed to be a corporation.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1990, c. 45, s. 12
- 1993, c. 27, s. 12
- Date modified: