1999 Ruling 9915423 - LOSS CONSOLIDATION

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 ISSUE:

Minor amendment to facts and proposed transactions in rulings 991085.

Position:

No effect on rulings given

REASON:

N/A

XXXXXXXXXX
XXXXXXXXXX 1-991542
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1999

Dear Sirs:

Re: Advance Income Tax Ruling
XXXXXXXXXX
XXXXXXXXXX

This is in reply to your facsimile letter of XXXXXXXXXX and your email of XXXXXXXXXX wherein you requested some amendments to the advance income tax ruling 3-991085 issued to the above-mentioned taxpayers on XXXXXXXXXX, 1999 (the “Ruling”).

More particularly, paragraphs 1,12, 18 and 20 of the Ruling are amended as follow:

1. At the end of paragraph 1, there should be added the following sentence:

XXXXXXXXXX

2. The first sentence of paragraph 12 should read as follows:

XXXXXXXXXX will borrow an amount (the “Principal Amount”) not exceeding $XXXXXXXXXX on a "daylight loan" from an arm's length financial institution or from its parent company XXXXXXXXXX (the "Daylight Loan")."

3. Paragraph 18(a) should read as follows:

XXXXXXXXXX will borrow an amount on a "daylight loan" basis from an arm's length financial institution or from its parent company XXXXXXXXXX and will use the funds to pay down the XXXXXXXXXX Loan."

4. The following sentence should be added to paragraph 20:

The interest deduction for XXXXXXXXXX will eliminate its taxable income and will therefore allow its XXXXXXXXXX research and development investment tax credits to be carried back to its XXXXXXXXXX taxation year, subject to the restrictions of the provisions the Act.

We confirm that the changes to the facts and proposed transactions as described above will not affect the rulings provided in the Ruling, and that those rulings will continue to be binding on Revenue Canada Customs, Excises and Taxation in the manner set forth therein after giving effect to the above amendments, provided that the proposed transactions are completed by XXXXXXXXXX.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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