British Columbia Revises Bulletin Regarding Related Party Asset Transfers

The Corporate Amalgamations section of British Columbia Bulletin PST 210, “Related Party Asset Transfers”, has been updated to eliminate the requirement for asset transfers from a predecessor corporation to an amalgamated corporation to be non-taxable that the amalgamation be formed under Canadian legislation. 

For BC PST purposes, the transfer of assets from a predecessor corporation to an amalgamated corporation is not a taxable sale if the following conditions are met regarding the amalgamation:

• formed under legislation such as the Business Corporations Act or the Canada Business Corporations Act, and
• meets continuation requirements.

In addition, asset transfers resulting from amalgamations formed under a plan of arrangement or under foreign legislation would also qualify as non-taxable sales.