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: Supplemental ruling to make minor changes to proposed transactions
Position: n/a
Reasons: n/a
XXXXXXXXXX
XXXXXXXXXX 2000-003543
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 2000
Dear Sirs:
Re: XXXXXXXXXX ("XXXXXXXXXX/DC") Advance Income Tax Ruling issued on XXXXXXXXXX, 2000 (our reference 2000-000716) (the "Ruling")
This is in reply to your letters of XXXXXXXXXX, wherein you requested amendments to the Ruling.
1. Paragraph 41 of the Ruling is amended by deleting the words "beginning with" in the third line of the text after subparagraph 41(b) and replacing them with the words "ending before" and by deleting the word "following" in the sixth line of such text and replacing it with the words "beginning with".
2. Paragraph 32 of the Ruling is deleted and replaced with the following:
"Each of Newco and XXXXXXXXXX/DC will bear a portion of the transaction costs incurred in the course of implementing the Proposed Transactions (including fees and other charges for the services and disbursements of legal, tax, financial and other professionals, as well as debt restructuring fees and other charges) equal to the Transfer Percentage. In this manner, such costs will not affect the pro rata allocation of the property of XXXXXXXXXX/DC as between it and Newco. To achieve this result, Newco will be obligated to make any required payments in respect of such costs and, under the terms of the Plan of Arrangement, XXXXXXXXXX/DC will owe its share of any such amount to Newco. Each amount so owed to Newco will be paid within XXXXXXXXXX of the Effective Date and will represent a portion of the cash outlay made by Newco (or Amalco) to satisfy legal obligations arising from the Proposed Transactions. As such, each amount owed by XXXXXXXXXX/DC to Newco will be classified as a property of Newco and as a liability of XXXXXXXXXX/DC."
We confirm that the rulings given in the Ruling will continue to be binding subject to the qualifications and limitations noted in the Ruling.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 2000
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