SPIR7050 - Mergers and Demergers
Small producers听that merge with each other may be entitled to transitional arrangements for calculating their SPR rate听for three years after merging, including听the production year the businesses merged and the following two production years.听听
Producers cannot benefit from the transitional听arrangements听if they join a business that听would听not be eligible for SPR听in its听own right.听
Guidance on how businesses work out their adjusted production amount is found here.听
If听a business demerges (separates)听from another,听the production amount for the year before would be nil.听
The producer听must then estimate the production amount for the current year听to calculate SPR, the estimate is used as the annual production figure for the current year.听
If during a three year transitional arrangement the merged producer becomes merged with another producer the first transitional arrangements end and if eligible another transitional arrangement may start.听听
Producers that remerge with the same businesses within seven years from听the date of separation will not be eligible for the transitional arrangements.听