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To print this article, all you need is to be registered or login on Mondaq.com. Any parent company that has established, purchased or otherwise acquired a subsidiary must look very carefully at whether the costs it incurs on an ongoing basis in holding the subsidiary can be claimed as tax-deductible expenses. The Income Tax Act is relatively strict on this issue and, unfortunately, in many respects quite ambiguous. First, it should be remembered that when talking about the relationship between the parent company and the subsidiary in the context of the Income Tax Act, we must rely on the definition of that relationship in the

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