Digests

Decision Information

Decision Content

INCOME TAX

Corporations

Appeal from Tax Court of Canada's dismissal of claim for refundable tax credit (2006 TCC 80) on basis appellant not Canadian‑controlled private corporation (CCPC) in 1999—Pursuant to Income Tax Act, s. 125(7)(b), shares owned by disqualifying shareholders (non‑residents, certain public corporations) attributed to mythical "particular person"— Corporation not CCPC if that particular person controlling corporation at any time—(1) Class B shares controlled by "non‑residents, public corporation" because owner (Bank of Montreal Capital Corporation (BMCC)) controlled by Bank of Montreal even though BMCC shares subject to Management Agreement between BMCC, other Canadian private corporation—Management Agreement not determinative of de jure control since not constating document, not attributing BMCC shares to private corporation—(2) Options to acquire common shares granted to resident, non‑resident employees—Once within scope of s. 251(5)(b), right assumed to be exercised—Since options assumed exercised, appellant controlled by non‑resident, public shareholders, not CCPC—Appeal dismissed.

Sedona Networks Corp. v. Canada (A‑136‑06, 2007 FCA 169, Malone J.A., judgment dated 30/4/07, 13 pp.)

 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.