Given the application of s. 256(6) to the entire Act, if the conditions set out in that subsection are otherwise satisfied, can CRA confirm that:
(i) The acquisition of control rules would not apply in a situation where the controlling entity holds (temporarily, in all likelihood) more than 50% of the voting rights for the shares issued by a corporation; and
(ii) If the dominant entity is a public corporation or a Crown corporation, the controlled corporation would not lose its CCPC status, if applicable.
CRA responded:
[(i)] …[I]n general, the acquisition of control rules, including subsection 249(4), would not apply in this situation.
[(ii)] ... [P]rima facie, the controlled corporation would not lose its status as a "private corporation" or as a "Canadian-controlled private corporation" in the situation before us.