The audit thresholds for acquiring control of a Canadian cultural enterprise are $5 million in the company`s book value for direct investments and $50 million in the book value of the company`s assets for indirect investments. In the case of an indirect acquisition of a cultural enterprise in which the value of the Canadian company`s global assets exceeds 50% of the value of all acquired assets, the threshold for verification is US$5 million in the book value of the assets. 45 (1) All investment conditions and investments authorized by the Foreign Investment Review Act, Chapter 46 of the Statutes of Canada, 1973-74, apply under this Act, as if the investment were subject to that Act. (2) If a non-Canadian has not made a proposed investment, when he receives a subsection notification (1). they will only make the investment if they receive the “national security” that is not defined in the ICA. In 2016, the government released a set of guidelines for the national security audit process. The guidelines state that assessing the impact of an investment project on national security generally takes into account the nature of the assets or activities and stakeholders, including the influence potential of third parties. As a general rule, any acquisition of control of a “Canadian company” through a “non-Canadian” acquisition is verifiable or verifiable under the ICA. Whether an acquisition is verifiable or verifiable depends on the structure of the transaction and the value and nature of the Canadian business to be acquired, whether it is a direct or indirect acquisition of control of a Canadian company. With a few exceptions, the federal government must be satisfied that a verifiable transaction “will likely be of net benefit to Canada” before the transaction can proceed; Reporting transactions only require the investor to submit a report after closing. Separately and outside of the net benefit audit, the ICA also provides that any investment by a non-Canadian in a Canadian company may be subject to a national security audit.
The value of the business is calculated differently depending on whether the Canadian company is a publicly traded or private company or whether it is assets. 3. An investment for which a receipt is forwarded pursuant to subsection 1 is not verifiable if the Minister has a period of forty-five days after the certified date of a declaration or a request for reconsideration to inform the investor that a national security audit warrant may be issued. An investment that is not not subject to notification or review may be voluntarily communicated to the Minister; the Minister may notify the investor, up to 45 days after the closing of the transaction, that a national security audit warrant may be issued. 3. An investment as described in paragraph 1, points (a) (b) or (c) may be verified in accordance with this part if the value of an investment, calculated according to the prescribed method, can be verified if the acquisition of a Canadian business is made and the value calculated in the manner prescribed by Investment Canada`s regulations is such that the acquired Canadian business establishes or exceeds the corresponding threshold set by the Investment Canada Act.