30 November 1995 Ruling 9605373 - XXXXXXXXXX

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 Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

XXXXXXXXXX							3-960537
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sir:

Re: XXXXXXXXXX

This is in reply to your letter of XXXXXXXXXX in which you requested an advance income tax ruling on behalf of XXXXXXXXXX. We also acknowledge your letters of XXXXXXXXXX and our telephone conversations in connection with the ruling request.

We understand that, to the best of your knowledge and that of the taxpayers involved, none of the issues involved in the requested ruling is being considered by a Tax Services Office or a Taxation Centre in connection with a tax return already filed, or is under objection or appeal.

I. FACTS

1.XXXXXXXXXX is a taxable Canadian corporation and a public corporation within the meaning of the Income Tax Act (the "Act").

2. XXXXXXXXXX.

3. XXXXXXXXXX.

4. XXXXXXXXXX.

5. XXXXXXXXXX.

6. XXXXXXXXXX.

7. XXXXXXXXXX.

8. XXXXXXXXXX.

9. XXXXXXXXXX.

II. PROPOSED TRANSACTION

XXXXXXXXXX will make a payment to the Plaintiffs to compensate them for XXXXXXXXXX. The payment will result from a court order, based on the XXXXXXXXXX.

III. PURPOSE OF THE PROPOSED TRANSACTION

The reason for the proposed transaction is to discharge a judgment of the Federal Court of Canada.

IV. RULING

The amount required to be paid XXXXXXXXXX including interest thereon, with the exception of:

1. XXXXXXXXXX.

2. XXXXXXXXXX.

arising from either a court order or a settlement, and reduced by any adjustment agreed to by the parties in respect of the tax rate differential issue mentioned above, will be deductible in computing XXXXXXXXXX income under Part I of the Act in the year in which the amounts are ascertained.

This ruling is given subject to the limitations and qualifications set out in Information Circular 70-6R2 dated September 28, 1990 issued by Revenue Canada and is binding provided that payment by XXXXXXXXXX to the Plaintiffs is made before XXXXXXXXXX.

This ruling is based on the Act as it currently reads and does not take into account any future amendments, whether currently proposed or not, to the Act.

Comments

1.This Ruling does not address whether the payments made by XXXXXXXXXX to XXXXXXXXXX will be subject to withholding tax under Part XIII of the Act.

2.This Ruling does not address the issue of when the amount to be paid by XXXXXXXXXX to the Plaintiffs will be ascertained.

Yours truly,

for Director
Reorganizations and International Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch