2000 Income Tax Severed Letter 2000-0034951 - Foreign merger

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 there is a disposition of assets by a corporation which survives an absorptive foreign merger.

Position: No

Reasons: The surviving corporation does not cease to exist.

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XXXXXXXXXX 								2000-003495
XXXXXXXXXX 

Attention: XXXXXXXXXX

XXXXXXXXXX, 2000

Dear Sirs:

Re: Advance Income Tax Ruling - XXXXXXXXXX

This is in reply to your request for amendments to the rulings given in our letter dated XXXXXXXXXX, 2000, our file number 2000-002395 (the "Ruling").

We hereby replace ruling C set out in the Ruling with the following:

Absorbco, as the surviving corporation, will continue and maintain its existing taxation year and will not be considered to have disposed of its assets upon the merger described in paragraph 19 above.

We hereby replace ruling F set out in the Ruling with the following:

Absorbco, as the surviving corporation, will continue and maintain its existing taxation year and will not be considered to have disposed of its assets upon the merger described in paragraph 20 above.

We trust the above is satisfactory for your purposes.

Yours truly,

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