Example

Corporations A, B and C each have a tax year that begins on January 1^st and ends on December 31^st.

• Corporation A's tax payable was $2,000 for 2014 and $4,000 for 2015.
• Corporation B's tax payable was $2,500 for 2014 and $5,000 for 2015.
• Corporation C's tax payable was $3,000 for 2014 and $6,000 for 2015.

Corporations A, B, and C amalgamated on January 1, 2016, to form Corporation ABC.

Instalment base amounts for first tax year

For its first tax year, which will end on December 31, 2016, Corporation ABC estimated its tax payable to be $20,000.

For Regulation 5301(4), the instalment base amounts for Corporation ABC's first tax year (which ends on December 31, 2016) would be:

• $15,000 for the first instalment base amount for the successor's 2016 tax year. This amount is the total of the predecessor corporations' tax payable for 2015 ($4,000 + $5,000 + $6,000) for their last tax year before amalgamation.
• $7,500 for the second instalment base amount for the successor's 2016 tax year. This amount is the total of the predecessor corporations' first instalment base amounts ($2,000 + $2,500 + $3,000) for the 2015 tax year.

Instalment base amounts for second tax year

For Regulation 5301(4), the instalment base amounts for Corporation ABC's second tax year (which ends on December 31, 2017) would be:

• $20,000 for the first instalment base amount for the successor's 2017 tax year.
• $15,000 for the second instalment base amount for the successor's 2017 tax year. This amount is the successor's first instalment base amount for its first tax year (2016).