Asked by
Oscar Smith
on Nov 07, 2024
Verified
For an acquisition to be tax-free the acquirer must apply to the CRA for tax-free status prior to launching the acquisition bid.
CRA
In a Canadian context, it stands for Canada Revenue Agency, the federal agency responsible for tax collection and administration.
Tax-free Status
The condition of not being subject to tax payments, applicable to certain accounts, entities, or income types under specific regulations.
Acquisition Bid
A proposal by one company to purchase another company, often through an offer to buy shares at a specified price.
- Grasp the tax considerations and implications in mergers and acquisitions.
Verified Answer
SA
Learning Objectives
- Grasp the tax considerations and implications in mergers and acquisitions.