Principal Issues: Whether an amalgamation will result in an acquisition of control of the predecessor corporations in a particular situation?
Position: Generally, no.
Reasons: Application of the law
XXXXXXXXXX 2005-013577
Fiona Harrison
June 17, 2005
Dear XXXXXXXXXX:
Re: Our file 2004-008776
Further to our telephone conversation of June 13, 2005, we wish to confirm that, in a situation where the three trustees of two discretionary trusts ("Trust1 and Trust2") have always been the same, and Trust1 owns all the shares of a corporation, Lossco, and Trust2 owns all the shares of a corporation, Profitco, the amalgamation of Lossco and Profitco will generally not result in an acquisition of control of either corporation.
We trust that the above comments are of assistance to you.
Yours truly,
Mark Symes
Corporate Reorganizations Section 1
Reorganizations and Resources Division
Income Tax Rulings Directorate