7 July 2000 Income Tax Severed Letter 2000-0039851 - Supplementary to ruling 001446

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: Supplementary to ruling 001446—ITA-55(3)(b)—Advance income tax ruling–Amendments to advance income tax ruling number 2000-001446 issued 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: Additional information on ruling 2000-001446 POSITION: n/a REASONS: n/a

XXXXXXXXXX 2000-003985

Attention: XXXXXXXXXX XXXXXXXXXX , 2000 Dear Sirs: Re: XXXXXXXXXX Advance Income Tax Ruling on our file number 2000-001446 We are writing in response to your letters of XXXXXXXXXX in which you advised of certain changes to information provided by you and included in paragraph 43 of our letter of XXXXXXXXXX , 2000 (the “Ruling”). Terms defined in the Ruling to have a certain meaning have the same meaning when used in this letter. In paragraph 43 of the Ruling, you had advised that if shareholders holding more than XXXXXXXXXX % but less than XXXXXXXXXX % of the XXXXXXXXXX /Aco Common Shares, the XXXXXXXXXX /Aco Class XXXXXXXXXX Shares or the XXXXXXXXXX /Aco XXXXXXXXXX Shares, XXXXXXXXXX dissent, the board of directors will have the option of proceeding with the Plan of Arrangement. The Plan of Arrangement provided that if the holders of more than XXXXXXXXXX % of all the outstanding XXXXXXXXXX /Aco Common Shares, the XXXXXXXXXX /Aco Class XXXXXXXXXX Shares or the XXXXXXXXXX /Aco XXXXXXXXXX Shares, XXXXXXXXXX dissented, XXXXXXXXXX /Aco would not proceed with the Plan of Arrangement. You are now advising that the level of dissent to the Plan of Arrangement would be over XXXXXXXXXX %. In this group of proposed dissenters there are a number of shareholders (referred to as “Major Dissenters”) who each hold a relatively significant number of share shares representing approximately XXXXXXXXXX %. Rather then changing the permissible level of dissent under the Plan of Arrangement, it is proposed that either XXXXXXXXXX /Bco or XXXXXXXXXX /Cco enter into an agreement with the Major Dissenters, whereby these shareholders would agree to withdraw their dissent in return for a put right with respect to their Newco Common Shares or their Newco Class XXXXXXXXXX Shares, exercisable after the transactions described in paragraphs 18 to 26 in the Ruling are carried out. This put right would entitle the Major Dissenters to put their Newco Common Shares or the Newco Class XXXXXXXXXX Shares to XXXXXXXXXX /Bco or XXXXXXXXXX /Cco, as the case may be, at the current market value of XXXXXXXXXX less approximately $XXXXXXXXXX per share (which amount represents the XXXXXXXXXX % of the value which the Major Dissenters would retain in the XXXXXXXXXX /Aco Common Shares, XXXXXXXXXX /Aco Class XXXXXXXXXX Shares or XXXXXXXXXX /Aco XXXXXXXXXX Shares, XXXXXXXXXX , as the case may be, which XXXXXXXXXX /Cco will acquire for cash, as described in paragraph 28 of the Ruling. Provided the agreement made with the Major Dissenters, as described above, is disclosed in the affidavit to be filed in support of the application, which is to take place on XXXXXXXXXX , for the Final Order of the Court referred to under the heading “Required Approvals” in the XXXXXXXXXX , the above change will not affect the rulings given in the Ruling and the rulings will continue to be binding as indicated therein. Yours truly, for Director Reorganizations and International Division Income Tax Rulings Directorate Policy and Legislation Branch