A merger is the combination of two separate companies into a new enterprise. This can occur by way of a share transfer or sale, or by way of an amalgamation of two or more corporate entities. The two original companies cease to exist as separate businesses and instead continue to run as a single entity. Amalgamations and other mergers can be either business or tax driven. That is, two related or unrelated corporations can choose to do business as one entity for ease of business relations, or two entities can merge because of the reduced tax liabilities.
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CRA Resources
S4-F7-C1 – Amalgamations of Canadian Corporations
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This posting provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All situations are specific to their facts and will differ from the situations in the articles and postings. If you have specific legal questions you should consult with a lawyer.