7 July 2000 Income Tax Severed Letter 2000-0038411 - Supplemental to ruling 2000-002949

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.

SUMMARY: Supplemental to ruling 2000-002949—ITA-20(1)(c)—Advance income tax ruling–Amendments to advance income tax rulingissued in 2000.

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: Supplementary to Ruling 002949 POSITION: n/a REASONS: n/a

XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX 2000-003841 XXXXXXXXXX Attention: XXXXXXXXXX

XXXXXXXXXX, 2000 Dear Sirs: Re: XXXXXXXXXX . (“XXXXXXXXXX/Aco”) Advance Income Tax Rulings—on our file number 2000-002949 This is in reference to your letter of XXXXXXXXXX, in which you requested changes to the Proposed Transactions and Rulings described in our letter dated XXXXXXXXXX, 2000 (the “Ruling”). Terms defined in the Ruling to have a certain meaning have the same meaning when used in this letter. As a result of your letter the following changes are made to the Ruling: 1. In paragraph 8, line 7 of first subparagraph, delete the word “annually” and replace with the word “quarterly”. 2. In paragraph 9, line 1 of second subparagraph, delete the words “an annuall” and replace with the words “a quarterly”. 3. Delete Paragraph 12 and replace with:

“12. XXXXXXXXXX/Aco will agree to make contributions of capital to the common share capital of Newco on a quarterly basis equal to the amount of dividends to be paid by Newco on the Newco Preferred Shares as long as such preferred shares are outstanding. XXXXXXXXXX/Aco will not be required to make such contributions of capital where Newco is no longer paying dividends to XXXXXXXXXX/Dco or, except for the first year where such contrbutions of capital are to be made by XXXXXXXXXX/Aco, where XXXXXXXXXX/Dco did not pay the dividends described in paragraph 14(a) below to XXXXXXXXXX/Cco in respect of the immediately preceding period.” 4. In paragraph 13, line 3, delete the words “an annual” and replace with the words “a quarterly”. 5. Paragraph 14, line 2, after the word “annual” and add the words “or quarterly”. 6. Add Paragraph 23 as follows:

“23. Each of XXXXXXXXXX/Aco and Newco will agree with XXXXXXXXXX/Dco that Newco shall be a single purpose company, shall have no liabilities and shall carry on (and XXXXXXXXXX/Aco will cause to carry on) no business other than that contemplated by the Proposed Transactions.” 7. Delete Ruling E and replace with the following:

“E. No amount will be included in the income of Newco pursuant to section 9, paragraph 12(1)(c) and 12(1)(x) in respect of the contributions of capital to the common share capital of Newco described in paragraph 12 above.” We confirm that the changes described above will not affect the rulings given in the Ruling and will continue to be binding as indicated therein.

Yours truly,

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