Proposed transaction
Mr. A, a composer, will transfer to a newly-incorporated wholly-owned corporation (“Opco1”) his property used in his business of composer, including copyright (other than performance rights previously transferred to SOCAN, being a collective society described in s. 2 of the Copyright Act) and including his rights to royalties from SOCAN, in consideration for Opco1 shares; and will jointly elect with Opco1 for this transfer to occur on a rollover basis pursuant to s. 85(1).
Rulings
Including that (subject to s. 69(11)) s. 85(1) will apply to such transfer of his copyright and his right to royalties from the collective society, and that CRA will not apply s. 56(4).