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: No new issues
Position: N/A
Reasons: N/A
XXXXXXXXXX
XXXXXXXXXX 2000-003105
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 2000
Dear Sirs:
Re: XXXXXXXXXX
XXXXXXXXXX
Advance Income Tax Ruling 2000-000325 dated XXXXXXXXXX, 2000
We are writing in response to our recent telephone conversations (XXXXXXXXXX) wherein you advised us of certain amendments to the proposed transactions described in advance income tax ruling 2000-000325 which was issued on XXXXXXXXXX, 2000 (the "Ruling Letter").
As requested, the following amendments are hereby made to the Ruling Letter:
1. In paragraph 25 of the Ruling Letter,
(a) the reference to "Xco's XXXXXXXXXX Bco XXXXXXXXXX shares" is replaced by a reference to "Yco's XXXXXXXXXX Bco XXXXXXXXXX Shares"; and
(b) the reference to "Yco's XXXXXXXXXX Bco XXXXXXXXXX Shares" is replaced by a reference to "Xco's XXXXXXXXXX Bco XXXXXXXXXX Shares".
2. In paragraph 35 of the Ruling Letter, the references in subparagraphs (a) and (b) to "the aggregate of the PUC" are replaced by "the aggregate of the stated capital".
3. Subparagraph (ii) of Ruling L of the Ruling Letter is replaced by:
"(ii) in respect of any such transfer, it is not reasonable to regard any excess (within the meaning of paragraph 85(1)(e.2)) as a benefit that the transferor wished to have conferred on a person who is related to the transferor,"
4. Subparagraph (ii) of Ruling Q of the Ruling Letter is replaced by:
"(ii) in respect of any such exchange, it is not reasonable to regard any portion of the excess (within the meaning of paragraph 51(2)(c)) as a benefit that any of Xco, Yco or Amalco, as the case may be, desired to have conferred on a person who is related to it,"
Notwithstanding the above amendments to the proposed transactions described in the Ruling Letter, we confirm that, subject to the conditions set out therein, the rulings given in the Ruling Letter, as hereby amended, will continue to be binding on the Canada Customs and Revenue Agency in accordance with the practice outlined in Information Circular 70-6R3, dated December 30, 1996, provided that the proposed transactions are completed in the manner described in the Ruling Letter, as hereby amended, by XXXXXXXXXX.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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