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: Amendments to Ruling 2002-015852
Position: The amendments are acceptable
Reasons: N/A
XXXXXXXXXX 2003-001430
XXXXXXXXXX, 2003
Dear XXXXXXXXXX:
Re: XXXXXXXXXX
XXXXXXXXXX
Amendments to Advance Income Tax Ruling 2002-015852
Further to your letter of XXXXXXXXXX, we confirm the following amendments to the above-noted advance income tax ruling issued on XXXXXXXXXX, 2002 (hereinafter referred to as the "Ruling").
PROPOSED TRANSACTIONS
1. Paragraph 19 of the Ruling is replaced with the following:
19. Once Topco has decided to unwind the Proposed Transactions in whole or in part, at that time:
(a) Opco will pay the balance of any accrued and unpaid interest on the Opco Demand Loan;
(b) Topco will make capital contributions to the common share capital of Newco equal to the amount of any accrued and unpaid dividends on the Newco Preferred Shares;
(c) Newco will declare and pay the balance of any accrued and unpaid dividends on the Newco Preferred Shares;
(d) Newco will redeem all or a portion of the Newco Preferred Shares held by Opco and settle the amount owing on redemption by assigning a corresponding amount of the Topco Demand Loan to Opco;
(e) Opco will repay all or a portion of the Opco Demand Loan equal to the redemption amount of the Newco Preferred Shares redeemed under Paragraph 19(d) above by setting off the amount owing to Topco with a corresponding amount of the Topco Demand Loan and such portions of the Topco Demand Loan and the Opco Demand Loan will be cancelled; and
(f) Once all of the preferred shares of Newco held by Opco have been redeemed and all of the demand loans have been settled, Newco will be wound up into Topco pursuant to subsection 210(3) of the CBCA.
RULINGS GIVEN
2. The paragraph immediately following Ruling J is replaced with the following:
The above rulings are given subject to the limitations and qualifications set out in Information Circular 70-6R5 dated May 17, 2002 and are binding on the Canada Customs and Revenue Agency provided that the Proposed Transactions, other than the proposed unwind described in Paragraph 19 above, are completed by XXXXXXXXXX.
We confirm that the amendments enumerated above will not otherwise affect the rulings given in the Ruling and that, subject to the conditions set out therein, they will continue to be binding on the Canada Customs and Revenue Agency in accordance with the practice outlined in Information Circular 70-6R5 dated May 17, 2002.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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