Corporate Amalgamation

Consumption taxes

If two or more corporations amalgamate, the GST and QST registration numbers of one of the predecessor corporations can be kept, or new registration numbers can be assigned to the new corporation.

If one of the predecessor corporations holds a permit in the fuel or tobacco sector, you must inform us of any changes resulting from the amalgamation by doing one of the following:

  • filing form LM-4-V, Information Update (Fuel Tax Act and Tobacco Tax Act)
  • sending us a letter providing the necessary information

In addition, if one of the predecessor corporations holds an IFTA license, you must request that the license be cancelled.

Source deductions and employer contributions

The amalgamation of two or more corporations has an impact on source deductions and employer contributions.

For more information, click Employer That is a Corporation Resulting From a Corporate Amalgamation.

Income tax – Corporations

If two or more taxable Canadian corporations amalgamate, the registration number of one of the predecessor corporations can be kept, or a new registration number can be assigned to the new corporation.

The corporation resulting from the amalgamation is considered a new corporation whose first taxation year begins on the date of the amalgamation. As a result, you can choose the end date of the new corporation's taxation year, provided the taxation year does not exceed 53 weeks. The taxation years of the predecessor corporations end immediately before the amalgamation.

Numerous aspects of the predecessor corporations have an impact on the new corporation, such as inventory, depreciable property, contracts, losses and fiscal elections.

For more information, consult the income tax folio Amalgamations of Canadian Corporations (S4-F7-C1) on the Government of Canada website.

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