{"id":571,"date":"2013-04-02T15:46:33","date_gmt":"2013-04-02T15:46:33","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=571"},"modified":"2025-02-12T13:29:32","modified_gmt":"2025-02-12T21:29:32","slug":"cra-confirms-tax-treatment-of-us-downstream-absorptive-merger","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2013\/04\/cra-confirms-tax-treatment-of-us-downstream-absorptive-merger\/","title":{"rendered":"CRA confirms tax treatment of US downstream absorptive merger"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/04\/2012-0449371I7.pdf\">2012-0449371I7<\/a>, the Canada Revenue Agency (CRA) confirmed that a both an upstream and a downstream absorptive merger under US corporate law would qualify for tax-deferred (rollover) treatment under proposed new s. 87(8.2).  The facts involved a Canadian company (Canco) that owned a corporation in the US (FA 1), which in turn owned another corporation in the US (FA 2).  Under a so-called downstream absorptive merger in the US undertaken in 2006, FA 1 merged into FA 2.  FA 1 disappeared in the merger; FA 2 was the surviving corporation.  Before FA 1 disappeared, it distributed all its shares of FA 2 to Canco and transferred all its remaining assets to FA 2.  In 2012-0449371I7, the Rulings Division of the CRA advised a Local Tax Services Office that this downstream absorptive merger qualified as a fully tax-deferred rollover under proposed new s. 87(8.2).  The latter rule, once enacted, will have retroactive application going back to 1994.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/04\/2012-0449371I7.pdf\">2012-0449371I7<\/a>, the Canada Revenue Agency (CRA) confirmed that a both an upstream and a downstream absorptive merger under US corporate law would qualify for tax-deferred (rollover) treatment under proposed new s. 87(8.2).  The facts involved a Canadian company&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-571","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=571"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/571\/revisions"}],"predecessor-version":[{"id":2787,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/571\/revisions\/2787"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}