2023 Ruling 2022-0958241R3 - Public Spin-Off Butterfly -- summary under Paragraph (b)

CRA ruled on a butterfly spin-off by a listed Canadian corporation (DC) of its indirect interest in a foreign project to a “SpinCo” to be held by its shareholders, with most of the steps to occur pursuant to a plan of arrangement. SpinCo, pursuant to the definition of “public corporation” in s. 89(1), was to elect in its federal return to be a public corporation from the beginning of the year until the time that its common shares were listed on the exchange.