Which of the following is one of the conditions necessary for an amalgamation to result in a tax-free/deferred combination?
A)At least one of the corporations must be Canadian.
B)Fifty percent of the assets and liabilities of the old corporation must become assets and liabilities of the new corporation.
C)The two corporations must be in a similar line of business.
D)All of the shareholders of the old corporations must become shareholders of the new corporation.

Question

Quizplus · Accepted Answer

For an amalgamation to result in a tax-free or deferred combination under Canadian tax law, one of the key conditions is that all of the shareholders of the old corporations must become shareholders of the new corporation. This ensures continuity of ownership, which is a fundamental requirement for such tax treatment.

Which of the Following Is One of the Conditions Necessary