9331-0688 Québec Inc. v. The King, 2023 TCC 173 (Informal Procedure) -- summary under Qualifying Group

By services, 3 January, 2024

In finding that three corporations which had the same individual as their sole shareholder did not qualify as specified members of a qualifying group, so that they were ineligible to make the joint election pursuant to s. 156(2), Jorré J noted that, in the case of corporations, the “qualifying group” definition referred to ”a group of corporations, each member of which is closely related … [per s. 128] to each other member of the group,” and then stated (at paras. 17-18, TaxInterpretations translation):

In accordance with section 128, only corporations controlled by a corporation may be closely related.

The owner of the [three corporations] is an individual and not a corporation.

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three corporations wholly-owned by an individual could not make a s. 156 election
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d7 import status
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