2002 2002-0176871 - Subsection 40(3.6) - Multiple Executors40(3.6)

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: Minor changes to proposed transactions

Position: Confirmed rulings granted in ruling 2002-015460

Reasons: The law

XXXXXXXXXX 2002-017687

XXXXXXXXXX, 2002

Dear XXXXXXXXXX:

Re: XXXXXXXXXX
Supplementary Advance Income Tax Ruling

This is in reply to your letter of XXXXXXXXXX and is supplemental to our advance income tax ruling number 2002-015460 dated XXXXXXXXXX, 2002 (the "Ruling"). As a result of your request, the following changes are made to the Ruling:

1. A new paragraph (10A) will be added immediately after existing paragraph 10, which will read as follows:

Prior to the transaction described in paragraph 13 below, Opco will have filed articles of amendment to permit the payment of the Redemption Amount for a special share, as an alternative method of payment to that described in paragraph 3(c) above, by way of the transfer and assignment by Opco of property of Opco including, without limitation, marketable securities, to the holder of a special share.

2. The last sentence of paragraph 12 is amended to read as follows:

It is expected that approximately XXXXXXXXXX special shares of Opco will be distributed by the Executors to individuals who are the residuary beneficiaries no later than XXXXXXXXXX.

3. The second sentence of paragraph 13 is amended to read as follows:

Opco will satisfy the aggregate Redemption Amount in part by issuing a cheque payable to the Estate and in part by transferring marketable securities to the Estate having a fair market value equal to the portion of the aggregate Redemption Amount that is not to be satisfied by the issuance of a cheque payable to the Estate.

Notwithstanding the above changes, we confirm that the rulings given in the Ruling will continue to be binding on the Canada Customs and Revenue Agency subject to the same limitations and qualifications set out therein, provided the proposed transactions are completed on or before XXXXXXXXXX.

Yours truly,

for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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