This article posted on our partner site Mondaq.com refers to a recent Tax Court of Canada decision to make it clear that a corporation can now receive the tax benefits offered to Canadian-Controlled Private Corporations (CCPCs) even though the majority of its shareholders are non-residents.
\nThe author uses the case to show that even if the majority of voting shares lies with non-resident shareholders, if the resident shareholders have the ability to elect a majority of directors, de jure control (or control in law) will be deemed to reside with the resident shareholders; the corporation is thus allowed to enjoy the tax benefits as a CCPC. A carefully drafted shareholders’ agreement that limits the control of non-resident shareholders can help ensure this outcome.
\nThis comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!
","frontmatter":{"title":"Blog Bite: How can a corporation enjoy tax benefits offered to Canadian-Controlled Private Corporations when the majority of its shareholders are non-residents?","date":"September 24, 2014","description":"This article posted on our partner site Mondaq.com refers to a recent Tax Court of Canada decision to make it clear that a corporation can now receive the tax benefits offered to Canadian-Controlled Private Corporations even though the majority of its shareholders are non-residents.","author":{"id":"alina@clausehound.com","first":"Alina","last":null,"bio":null,"image":null},"tags":["Shareholders Agreement","Mondaq","Learn","Canada (General)"]}}},"pageContext":{"slug":"/blog-bite-how-can-a-corporation-enjoy-tax-benefits-offered-to-canadian-controlled-private-corporations-when-the-majority-of-its-shareholders-are-non-residents/","previous":{"fields":{"slug":"/entering-into-a-term-sheet-is-hard-enough-getting-out-of-one-can-be-even-harder/"},"frontmatter":{"title":"Entering Into a Term Sheet is Hard Enough, Getting Out of One Can be Even Harder","tags":["Long Form","Investor","No-Shop","Term Sheet","Independent Legal Advice","Costs and Expenses","Start-up","Mergers and Acquisition","Rajah","Share Purchase Agreement","Investor Term Sheet","Memorandum of Understanding"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}},"next":{"fields":{"slug":"/blog-bite-how-do-us-courts-determine-whether-a-website-user-has-assented-to-its-terms-under-a-browsewrap-agreement/"},"frontmatter":{"title":"Blog Bite: How do US courts determine whether a website user has assented to its terms under a browsewrap agreement?","tags":["Terms of Use","Mondaq","Learn","USA"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}}}}}