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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
whether gaar could apply
Position:
maybe, if call option is exercised and 24 month period in 110.6(2.1) avoided
Reasons:
110.6
XXXXXXXXXX 2001-010333
XXXXXXXXXX, 2001
Dear XXXXXXXXXX:
Re: Supplementary Advance Income Tax Ruling
XXXXXXXXXX
This is in reply to your letter of XXXXXXXXXX, and is supplemental to our advance income tax ruling number 2001-006921 dated XXXXXXXXXX, 2001 (the "Ruling").
As a result of your letter, the following change will be made to the Ruling:
Delete Caveat (iii) and insert the following Caveat in its place:
(iii) whether or not, if the Offer described in paragraphs 17 and 18 above is exercised, the general anti-avoidance rule in subsection 245(2) of the Act would apply if a capital gains deduction in subsection 110.6(2.1) of the Act were claimed by a Limited Partner on a disposition of the common or Preferred Shares (described in paragraph 17 above) at a time when either the business described in paragraph 3 above had not been carried on by Limited Partnership for a period of at least 24 months or the common or Preferred Shares had not been held by the former Limited Partner for a period of at least 24 months;
Notwithstanding the above change, we confirm that the Ruling will continue to be binding on the Canada Customs and Revenue Agency in the manner described therein, provided that the proposed transactions are completed by XXXXXXXXXX.
If we can be of any further assistance, please contact the writer.
Yours truly,
XXXXXXXXXX
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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