Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 43

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 10
Chunk 43
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 is ultimately
controlled by non-Canadians. If a “non-Canadian” (for example, a US resident acquirer) were to acquire such a control position,
they would not be required to do any filings or provide any notices to the Ministry of Industry (Canada) unless notified first by that
Ministry that their acquisition of control was under review.

  40  

Canada
has, as does the United States, competition laws designed to promote competition in industry and markets. The Competition Act (Canada)
provides Canada’s federal government with the power to review or prevent business transactions, such as acquiring a controlling
interest in a company similar to the Company, if it is found that the acquisition of control would reduce competition in a given market
or industry. Since the market that the Company competes in is extremely competitive, no single company, including the Company, seems
to have significant market power. Acquisition of the Company, therefore, would not lead to reduced competition.

10. E.
Taxation

Canadian
Federal Income Tax Considerations:

The
following is a brief summary of some of the principal Canadian federal income tax consequences to a holder of common shares of the Company
(a “ U. S. Holder”) who deals at arm’s length with the Company, holds the shares as capital property and who, for the
purposes of the Income Tax Act (Canada) (the “ Act”) and the Canada - United States Income Tax Convention (the “ Treaty”),
is at all relevant times resident in the United States, is not and is not deemed to be resident in Canada and does not use or hold and
is not deemed to use or hold the shares in carrying on a business in Canada. Special rules, which are not discussed below, may apply
to a U. S. Holder that is an insurer that carries on business in Canada and elsewhere.

Under
the Act and the Treaty, a U. S. Holder of common shares will generally be subject to a 5% withholding tax on dividends paid or credited
or deemed by the Act to have been paid or credited on such shares. The withholding tax rate is 5% where the U. S. Holder is a corporation
that beneficially owns at least 10% of the voting shares of the Company and the dividends may be exempt from such withholding in the
case of some U. S. Holders such as qualifying pension funds and charities.

In
general, a U. S. Holder will not be subject to Canadian income tax on capital