If a parent company has a subsidiary, its assets can always be transferred to the parent on a tax free basis using either an ITA 87 amalgamation or, alternatively, an ITA 88(1)winding-up of a 90 percent owned subsidiary.

Question

Quizplus · Accepted Answer

The ability to transfer assets on a tax-free basis using either an ITA 87 amalgamation or an ITA 88(1) winding-up depends on meeting specific criteria and conditions outlined in the Income Tax Act (Canada). It is not always guaranteed and requires careful planning and compliance with tax laws.

If a Parent Company Has a Subsidiary, Its Assets Can