Closely Related Corporations (GST/HST) Regulations
SOR/91-21
Registration 1990-12-18
Regulations Prescribing a Corporation that is Closely Related to a Particular Corporation
P.C. 1990-2730 1990-12-18
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 277(1)Footnote * of the Excise Tax Act, is pleased hereby to make the annexed Regulations prescribing a corporation that is closely related to a particular corporation.
Return to footnote *S.C. 1990, c. 45, s. 12
Short Title
1 These Regulations may be cited as the Closely Related Corporations (GST/HST) Regulations.
- SOR/2001-169, s. 1
Interpretation
2 In these Regulations,
- Act
Act means the Excise Tax Act; (Loi)
- specified share
specified share means an issued and outstanding share of the capital stock of a corporation having full voting rights under all circumstances. (action déterminée)
Prescribed Corporations
3 For the purposes of paragraph 128(1)(b) of the Act, a corporation (in this section referred to as the other corporation) is a prescribed corporation in relation to a particular corporation where the other corporation is a registrant resident in Canada and
(a) where
(i) the total value and number of all specified shares of the other corporation, each of which
(A) is owned by the particular corporation,
(B) is owned by a corporation that is closely related to the particular corporation by reason of paragraph 128(1)(a) of the Act,
(C) is owned by
(I) an employee of the other corporation, of a corporation that is closely related to the other corporation by reason of paragraph 128(1)(a) of the Act, or of a corporation referred to in clause (A) or (B), or
(II) a corporation not less than 90% of the total value and number of all specified shares of which are owned by employees referred to in subclause (I),
where the specified shares of the other corporation, or of the corporation referred to in subclause (II), as the case may be, that are owned by employees are shares that cannot be traded on a stock exchange and the ownership of which by an employee arose in respect of the employment of the employee, or
(D) is held in trust for the benefit of the other corporation or of an employee referred to in subclause (C)(I) and cannot be traded on a stock exchange and the beneficial ownership of which by the employee arose in respect of the employment of the employee,
represents not less than 90% of the total value and number of all specified shares of the other corporation, and
(ii) the total value and number of all specified shares of the other corporation, each of which is owned by a corporation referred to in clause (i)(A) or (B), represents not less than 50% of the total value and number of all specified shares of the other corporation; or
(b) where the total value and number of all specified shares of the other corporation, each of which is owned by
(i) the particular corporation,
(ii) a corporation that is closely related to the particular corporation by reason of paragraph 128(1)(a) of the Act, or
(iii) a corporation that is a prescribed corporation in relation to the particular corporation by reason of paragraph (a),
represents not less than 90% of the total value and number of all specified shares of the other corporation.
- SOR/93-242, s. 2(F)
- SOR/94-368, s. 4(F)
4 For the purposes of paragraph 128(1)(b) of the Act, each of the following corporations is a prescribed corporation in relation to every credit union if the corporation is a registrant resident in Canada:
(a) CDSL Canada Limited; and
(b) CUE Datawest Ltd.
- SOR/2001-169, s. 2
- Date modified: