Son is the owner of 10 out of 100 issued Common Shares in the capital of Opco, which are the only issued shares of the corporation. Son grants a power of attorney to his father to exercise all rights to the 10 shares “except as expressly excepted”. The CRA confirmed that the father, as the attorney, simply acted as his son’s agent. The power did not displace the son’s legal and beneficial ownership of the shares for the purposes of paragraph 120.4(1) “excluded shares” (b).
CRA technical interpretation 2025-1053231E5 (March 12, 2025) summarized in Tax Topics no 2737 (August 12, 2025)
