I always get this confused, and I’ve seen it reported different ways, so I’m not sure CRA even cares, but is the determination of whether a corporation is either related and/or associated made at the end (last day) of the taxation year of the corporation for the T2 of which I am preparing or is the determination made to be at any time during the corporation’s taxation year? Thanks!
It’s actually “both”
My understanding is the T2 Schedule 9 primarily focuses on associations that existed at the “end of the taxation year” in order to allocate the small business limit, as well as relationships that existed at any time “during the taxation year”.
If a corporation is Associated with another corporation (or corporations) at the end of its fiscal year then T2s9 as well as T2s23 are required to be completed.
If a corporation is Related with another corporation (or corporations) at any time during its fiscal year then T2s9 is required to be completed.
The difference being the code that you enter in box 400 of Schedule 9