ARCHIVED - Meaning of the Term Corporation

What the "Archived Content" notice means for interpretation bulletins

NO: IT-343R

DATE: September 26, 1977

SUBJECT: INCOME TAX ACT
Meaning of the Term Corporation

REFERENCE: Paragraph 95(1)(d)

This Bulletin replaces and cancels Interpretation Bulletin IT-343 dated September 7, 1976.

1. For the purpose of subdivision i of Division B of Part 1 of the Income Tax Act a "foreign affiliate" is defined in paragraph 95(1)(d) as being a non-resident corporation in which the taxpayer's equity percentage is not less than 10 %. The purpose of this bulletin is to define the term "corporation" as it applies to that paragraph.

2. A corporation is an entity created by law having a legal personality and existence separate and distinct from the personality and existence of those who caused its creation or those who own it. A corporation possesses its own capacity to acquire rights and to assume liabilities, and any rights acquired or liabilities assumed by it are not the rights or liabilities of those who control or own it. As long as an entity has such separate identity and existence, the Department will consider such entity to be a corporation even though under some circumstances or for some purposes the law may ignore some facet of its separate existence or identity.

3. It is the view of the Department that the above definition includes not only corporations sometimes referred to as joint stock companies and limited liability companies but also the following entities organized under the laws of foreign jurisdictions:

Aksjeselskap (A/S or A.S.) (Norway)
Aktieselskab (A/S) (Denmark)
Aktiebolag (Sweden)
Aktiengesellschaft (A.G.)
Anpartsselskab (ApS) (Denmark)
Anstalt (Liechtenstein)
Besloten Vennootschap met beperkte aansprakelijkheid (B.V.) (Netherlands and possessions)
Compania Anonima
Gesellschaft mit beschränkter Haftung (G.m.b.H. or Ges m.b.H.)
Kabushiki Kaisha (K.K.) (Japan)
Limitada (Sociedade por quotas) (Portugal)
Naamloze Vennootschap (N.V.) (Netherlands and possessions)
Sharikat Al-Mossahamah (Saudi Arabia)
Sharikat Mussahama
Sherkat Sahami Aam (Iran)
Sherkat Sahami Khas (Iran)
Sociedad(e)(s) anÓnima(s) (S.A.)
Sociedad(e) (anÓnima) de responsabilid(e) (ad) limitada (por quotas) (S.L.) (S.A.R.L.) (SRL)
Société anonyme
Société de personnes à responsabilité limitée
Société à responsabilité limitée
Società per Azioni (Italy)
Yugen Kaisha (Japan)

Many of the above entities exist in more than one country. Those which the Department recognizes in respect of one country only are identified by the name of the country in brackets.

4. The Department may be consulted in respect of the status of foreign entities not included in the list in 3 of this bulletin.

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