2001 Ruling 2000-0061803 - Phantom Stock Plan - Directors

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:

Are the completed Directors' elections subject to a condition precedent such that we can rule?

Position: Yes.

Reasons:

The elections do not become effective until the date a favourable ruling is issued.

XXXXXXXXXX 	 					2000-006180

XXXXXXXXXX, 2001

Dear Sirs:

Re: Supplementary Advance Income Tax Ruling
XXXXXXXXXX (our file 2000-005105)

This is in response to your telephone call on XXXXXXXXXX wherein you requested an amendment to paragraphs 9 and 10 of the advance income tax ruling issued on XXXXXXXXXX, 2000 for the XXXXXXXXXX (our reference 2000-005105)( the "Ruling").

As a result of your call, paragraph 9 of the Ruling is amended to read as follows:

9. Subject to receiving a favourable Ruling, the Corporation proposes to establish the Plan effective XXXXXXXXXX, in order that the Directors may be provided with the option, commencing with the Corporation's XXXXXXXXXX fiscal year, of receiving, in lieu of cash, XXXXXXXXXX of the Fees to which they may become entitled in respect of a fiscal year, as elected by them prior to the relevant fiscal period, as Units under the Plan.

The last sentence in paragraph 10 of the Ruling is replaced by the following:

Directors who wished to participate in the proposed Plan completed, on or after XXXXXXXXXX and before XXXXXXXXXX, elections in respect of the Corporation's XXXXXXXXXX fiscal year. These elections were conditional upon the receipt of a favourable Ruling.

We confirm that the above-noted changes will not affect the rulings given in the Ruling and they will continue to be binding on the Canada Customs and Revenue Agency as indicated therein.

Yours truly,

XXXXXXXXXX
for Director
Financial Industries Division
Income Tax Rulings Directorate