via GC.ca - Deemed Year End

In wondering just why a pro-forma(patently false) technical report was entered prior to the end of restructuring proceedings(I would not refer to it as Bankruptcy), I was looking at just how long the company might have to defer tax reporting and exactly when the fiscal year might end.

Considering that the fiscal year in question might be more than 365 days, the fiscal year may now end at the end of this calendar year, owing to the halt of proceedings extending 75 days past the end of fiscal 2016, which ended April 30 2016. So by default under law, the calendar year for taxation purposes comes on the end of the calendar year.

There is also a question of 'starting afresh' or a change of ownership implied by proceedings. It's a question of just when the trading halt is lifted by the regulatory body, what the company may look like on the close of the restructuring.

"3) Notwithstanding subsection 249(1), where the fiscal period of a corporation exceeds 365 days and by reason thereof the corporation does not have a taxation year that ends in a particular calendar year, for the purposes of this Act, the corporation’s first taxation year ending in the immediately following calendar year shall be deemed to end on the last day of the particular calendar year."

http://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-249-20070622.html

GLTA

-F6