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: additional transaction disclosed. capital dividend to be paid prorata to common shareholders of distributing corporation. no problems since assets distributed prorata to each shareholder.
Position:
Reasons:
XXXXXXXXXX
XXXXXXXXXX 2000-001668
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 2000
Dear Sirs:
Re: Advance income tax ruling #3-992399 dated
XXXXXXXXXX, 1999 issued to XXXXXXXXXX
XXXXXXXXXX as amended by
supplemental ruling 2000-000681
dated XXXXXXXXXX, 2000 (the "Ruling Letter")
We are writing in response to your facsimile transmission dated XXXXXXXXXX wherein you have advised us of the following. Prior to the transaction described in paragraph 23 of the Ruling Letter, XXXXXXXXXX will declare and pay a cash dividend on its common shares and elect under subsection 83(2), in prescribed manner and prescribed form, such that the dividend will be deemed to be a capital dividend. The amount of such dividend will be equal to the amount of the CDA at the time of the declaration of the dividend. You have advised us that there have not been any other changes to the relevant facts and proposed transactions described in the Ruling Letter.
Subject to the conditions stated therein, the Ruling Letter will continue to be binding on the Canada Customs and Revenue Agency.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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