Ms. A owns 70 percent of the shares of A Ltd. and 10 percent of the shares of B Inc. A Ltd. owns 30 percent of the shares of B Inc. Ms. A’s 6 year old child owns 40 percent of the shares of B Inc. There are no other shareholders who hold shares in both Companies. Required: Clearly indicate your answers for the following: 

(1) Are A Ltd. and B Inc. associated? (Yes or No) 

(2) Show Ms. A’s total (direct & indirect) ownership calculation in each corporation: Ms. A’s ownership in A Ltd.: Ms. A’s ownership in B Inc:. 

(3) Identify the appropriate reference (ITA provisions), if associated .

Answer rating: 100% (QA)

Solution 1 YES A Ltd and B Inc are associated enterprises Both are associated enterprises as One en... View the full answer