SPIR7050 - Mergers and Demergers

Small producers that merge with each other may be entitled to transitional arrangements for calculating their SPR rate for three years after merging, including the production year the businesses merged and the following two production years.  

Producers cannot benefit from the transitional arrangements if they join a business that would not be eligible for SPR in its own right. 

Guidance on how businesses work out their adjusted production amount is found here. 

If a business demerges (separates) from another, the production amount for the year before would be nil. 

The producer must then estimate the production amount for the current year to calculate SPR, the estimate is used as the annual production figure for the current year. 

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.  

Producers that remerge with the same businesses within seven years from the date of separation will not be eligible for the transitional arrangements.