Blog Bite: Can a corporation be considered a Canadian controlled private corporation for taxation purposes when a majority of the voting shares are held by non-residents if the USA prevents non-resident shareholders from electing a majority of the directors?

September 13, 2012

This article posted on our partner site is about how relevant the provisions of a unanimous shareholders’ agreement (USA) are for determining tax status particularly as a Canadian controlled private corporation (CCPC).

The author discusses this decision and notes that for this taxation status, de jure control of the corporation must be considered including the USA. This case would allow flexibility for taxation insofar as it could allow corporation with non-resident majority shareholders to receive tax credits.

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!

Shareholders Agreement
Canada (Federal)

Written by Alina.