A Canadian Controlled Private Corporation (or “CCPC”) is a private corporation being controlled by Canadian residents. The definition strictly prohibits public companies from qualifying, and also those run by non-residents.
The major benefit of being a CCPC is access to the small business deduction.
Another major benefit is that the sale of CCPC shares may qualify for the Lifetime Capital Gains Exemption. Meaning a portion of the capital gain may be tax free to the seller.
CRA Resources
IT458R2 ARCHIVED – Canadian-Controlled Private Corporation (it458r2-e.html)
Case law
The Queen v MacDonald, 2013 FCA 110
Bioartificial Gel Technologies Inc. v The Queen, 2012 TCC 120
Detailed Case law analysis may be found here: http://ita-annotated.ca/RecentDecisions/category/substantive-provision/ccpc/
