Excise Tax Act

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

  • (a) 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); or

    • (vi) [Repealed, 1993, c. 27, s. 12]

  • (b) the other corporation is a prescribed corporation in relation to the particular corporation.

• Marginal note:Corporations closely related to the same corporation

  (2) If under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part.

• Marginal note:Investment funds

  (3) For the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation.