Problem: Associated Companies
Consider each of the following independent cases involving the ownership of the common shares of Canadian-controlled private corporations
A) Leah Ltd. owns 55% of the shares of Elaine Lid. B) Ms. Miriam owns 51% of the shares of Miri Ltd. and 60% of the shares of Ethan Jay Ltd.
C) Ms. Irene and Mr. Mordechai each own 50% of the shares of IL Ltd.. In addition, they each own 50% of the shares of Frim Ltd.. Ms. Irene and Mr. Mordechai are not related.
D) Janna, Rayna and Adam each own 1/3 of the shares of Stan Ltd.. Janna and Rayna each own 50% of the shares of Jonathan Ltd.
E) Ms. Ruth owns all of the shares of Rick Lid.. Ms. Ruth owns 25% of the shares of Daniel Ltd. and Ms. Ruth's daughter, Elana, who is over 18 years old, owns the other 75%.
F) Ms. Ruth owns all of the shares of Rick Ltd.. Ms. Ruth owns 25% of the shares of Daniel Ltd. and Ms. Ruth's daughter, Elana, who is under 18 years old, owns the other 75%.
REQUIRED: For each of the above cases, determine whether the corporations named are associated. Substantiate your answer by reference to specific provisions in the Income Tax Act. Need Assignment Help?