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.
Principal Issues: Statements added for greater clarity.
Position: Granted.
Reasons: The additional statements provide the taxpayer with the level of comfort that was initially intended to be provided.
XXXXXXXXXX 2005-011790
XXXXXXXXXX, 2005
Dear Messrs:
Re: Advance Income Tax Ruling
XXXXXXXXXX
(XXXXXXXXXX Tax Services Office, XXXXXXXXXX Taxation Centre)
XXXXXXXXXX (XXXXXXXXXX Tax Services Office, XXXXXXXXXX Taxation Centre)
This is in reply to our conversation dated XXXXXXXXXX in which you requested amendments to the rulings set out in the Advance Income Tax Ruling letter (document # 2005-011790) issued to the above-referenced taxpayers on XXXXXXXXXX 2005 (the Ruling).
It is our understanding that the series of proposed transactions described in the Ruling have not been completed and accordingly, following our review of your request, the Ruling is revised as follows:
1. The words "The Share" in the middle of the definition of MFC Class B Share are replaced by the words "the share".
2. The words "and fair market value" are inserted in paragraphs 13(a)(ii) and 24(c)(i) after the words "principal amount".
3. The following sentence is inserted at the end of ruling G: "For greater certainty, the cost amount to Opco and to the Fund of the LP Notes described in paragraphs 13(a)(ii) and 24(c)(i) will be equal to the respective principal amount of those notes by virtue of paragraph 85(1)(f).
4. The second to last paragraph of the Rulings section is replaced by "These rulings are given subject to the limitations and qualifications set forth in Information Circular 70-6R5 issued on May 17, 2002, and are binding on the Canada Revenue Agency provided that the Proposed Transactions, subject to the transaction described in section 34, are completed before XXXXXXXXXX."
Notwithstanding the above-mentioned changes, we confirm that the rulings given in the Ruling, as amended above, will continue to be binding on the Canada Revenue Agency in the manner described therein.
Yours truly,
XXXXXXXXXX
Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Planning Branch
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© Her Majesty the Queen in Right of Canada, 2005
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