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.
Principal Issues:
Whether minor modifications of the Partnership Agreement and the Trust Agreement will impair the rulings that were provided previously.
Position:
No.
Reasons:
The change to the Partnership Agreement is to enable the Partnership to borrow funds using the funds in 2 of its 3 accounts as collateral, thereby enabling the Partnership to invest in long-term instruments and yet be able to meet short-term obligations that may arise. This does not affect ruling C that ss.103(1) and (1.1) of the Income Tax Act will not apply.
The change to the Trust Agreement is to delete the requirement that a Trust must hold its property on reserve. This does not affect Ruling A that each Trust will be entitled to make a deduction under para.104(6)(b) of the Income Tax Act.
Neither change will affect Ruling B that an Entitlement First Nation may qualify as a public body performing a function of government in Canada for purposes of para.149(1)(c) of the Income Tax Act.
XXXXXXXXXX 980305
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1998
Dear Sirs:
Re: Amendment of Advance Income Tax Ruling 971180
XXXXXXXXXX
This is in reply to your letter of XXXXXXXXXX in which you advised us of the necessity to make a number of minor changes to certain documents that pertain to our ruling letter 971180, dated XXXXXXXXXX, 1997 (the "Ruling Letter 971180"). We acknowledge your subsequent letters of XXXXXXXXXX and our related telephone conversations.
Capitalized terms have the meaning as defined in the Ruling Letter 971180 and its related Exhibits.
Our understanding of the changes to be made is as follows:
1. The Partnership Agreement will be amended so as to enable the General Partner to pledge, mortgage, hypothecate, charge or in any other manner borrow money using some or all of the funds in Account I (i.e., XXXXXXXXXX) and Account T (i.e., XXXXXXXXXX) as security.
2. The Trust Agreement (and the Banking Arrangement, which is Attachment XXXXXXXXXX to the Trust Agreement) will be amended to delete the requirement that the Trust Property be held on a Reserve. Specifically, the branch of the financial institution at which XXXXXXXXXX ("Account F") and XXXXXXXXXX ("Account L") will be maintained will not be required to be situated on a Reserve. In addition, the Investment Instruments will not be required to be situated on a Reserve.
We confirm that these changes to the documents will not adversely affect the rulings which were provided in Ruling Letter 971180.
Yours truly,
Manager
Business, Property and Employment Section I
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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