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B.C. delays its ‘significant control’ rules

B.C. delays its ‘significant control’ rules

The in-force date for these rules is delayed until October 1, 2020 (from May 1, 2020)

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British Columbia is pushing back the coming-into-force date for its new 'significant control' reporting requirements to October 1, 2020 (from May 1, 2020), in response to COVID-19. Once in force, these new corporate transparency rules will require that certain private corporations in the province keep up-to-date records on 'significant individuals' who meet specified corporate ownership thresholds. The rules largely mirror the federal 'significant control' corporate reporting requirement rules, which have been in effect since June 13, 2019.

Background

British Columbia's 'significant control' reporting requirements were originally scheduled to enter into force on May 1, 2020.

The rules require certain B.C. private corporations to track specified information for each of the corporation's 'significant individuals' in a new transparency register.

"Significant individuals" are those that either hold an interest or right in 25% or more of the corporation's outstanding voting shares, or 25% or more of the corporation's outstanding shares (regardless of value). Significant individuals include:

  • Registered shareholders
  • Beneficial shareholders, or
  • Individuals who have direct or indirect control over the shares of a private B.C. corporation

A significant individual also includes an individual with the rights to elect, appoint or remove a majority of the company's directors. Corporations without significant individuals must include this information in a statement within the transparency register.
For more information, contact your KPMG advisor.

Information is current to April 21, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.850

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