Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Amendments to Ruling 2002-012381
Position: The amendments are acceptable
Reasons: N/A
XXXXXXXXXX 2003-001429
XXXXXXXXXX, 2003
Dear XXXXXXXXXX:
Re: XXXXXXXXXX
XXXXXXXXXX
Amendments to Advance Income Tax Ruling 2002-012381
Further to your letter of XXXXXXXXXX, we confirm the following amendments to the above-noted advance income tax ruling issued on XXXXXXXXXX, 2002 (hereinafter referred to as the "Ruling").
PROPOSED TRANSACTIONS
1. Paragraph 17 of the Ruling is replaced with the following:
17. Once Aco has decided to unwind the Proposed Transactions in whole or in part, at that time:
(a) Bco will pay the balance of any accrued and unpaid interest on the Bco Demand Loan;
(b) Aco will make capital contributions to the Newco Common Share capital equal to the amount of any accrued and unpaid dividends on the Newco Preferred Shares;
(c) Newco will declare and pay the balance of any accrued and unpaid dividends on the Newco Preferred Shares;
(d) Newco will redeem all or a portion of the Newco Preferred Shares held by Bco and settle the amount owing on redemption by assigning a corresponding amount of the Aco Demand Loan to Bco;
(e) Bco will repay all or a portion of the Bco Demand Loan equal to the redemption amount of the Newco Preferred Shares redeemed under Paragraph 17(d) above by setting off the amount owing to Aco with a corresponding amount of the Aco Demand Loan and such portions of the Aco Demand Loan and the Bco Demand Loan will be cancelled; and
(f) Once all of the Newco Preferred Shares held by Bco have been redeemed and all of the Aco Demand Loan has been assigned to Bco, as described in Paragraph 17(d) and Paragraph 17(e) above, Newco will be wound up into Aco pursuant to subsection 210(3) of the CBCA.
RULINGS GIVEN
2. The paragraph immediately following Ruling J is replaced with the following:
The above rulings are given subject to the limitations and qualifications set out in Information Circular 70-6R4 dated January 29, 2001 and are binding on the Canada Customs and Revenue Agency provided that the Proposed Transactions, other than the proposed unwind described in Paragraph 17 above, are completed by XXXXXXXXXX.
The above rulings are based on the law as it presently reads and do not take into account any proposed amendments to the Act which, if enacted, could have an effect on the rulings provided herein.
We confirm that the amendments enumerated above will not otherwise affect the rulings given in the Ruling and that, subject to the conditions set out therein, they will continue to be binding on the Canada Customs and Revenue Agency in accordance with the practice outlined in Information Circular 70-6R4 dated January 29, 2001.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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