2003 Income Tax Severed Letter 2003-0019881 - Mutual Fund Corporation

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 in definitions and facts.

Position: No effect on Ruling

Reasons: Minor changes.

XXXXXXXXXX 2003-001988

XXXXXXXXXX, 2003

Dear XXXXXXXXXX:

Re: XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Supplementary Advance Income Tax Ruling

This is in reply to your letter of XXXXXXXXXX and is supplemental to our advance income tax ruling # 2003-000724 dated XXXXXXXXXX, 2003 (the "Ruling"). In your letter you have requested minor changes to the Ruling. The Ruling is amended as follows:

Amendment to the Definitions

The definition "Class Net Asset Value" is deleted and replaced with the following:

"Class Net Asset Value" means the amount determined at each Valuation Time that is the value of the assets of the Class less its liabilities. The method of valuation operates by adjusting the Class Net Asset Value determined at the last Valuation Time to take into account net subscriptions and redemptions, income earned, and changes in the value of assets held."

Amendments to the Facts

Paragraph 1 of the Ruling is deleted and replaced with the following:

1. On XXXXXXXXXX, Mutual Fund elected to be a "public corporation" pursuant to paragraph (b) of the definition of "public corporation" in subsection 89(1) of the Act. The Mutual Fund is a mutual fund corporation as defined in subsection 131(8) of the Act.

Paragraph 6(v) of the Ruling is deleted and replaced with the following:

6(v) the right to be exchanged for shares of any other class of Fund Shares in respect of which shares are issued. The basis of the exchange would be that shares of the old class would be exchanged for shares of the new class through issuance of that number of shares of the new class equal to the number obtained by dividing the aggregate of the Class Net Asset Value per Share of each of the old shares by the Class Net Asset Value per Share of the new shares at the Valuation time on that Pricing Date. As of the date hereof, there are no shares of any other class for which Class 1 shares may be exchanged.

Amendment to the proviso to the Ruling

The reference to paragraph 12 in the second last proviso should be a reference to paragraph 13, therefore that proviso is deleted and replaced with the following:

"The above rulings are given subject to the general limitations and qualifications set out in Information Circular 70-6R5 issued on May 17, 2002, and are binding provided that LP C is wound-up as described in paragraph 13 above on or before XXXXXXXXXX and LP D is wound-up on or before XXXXXXXXXX."

Notwithstanding the above-noted changes, in accordance with the practice outlined in Information Circular 70-6R5, dated May 17, 2002, we confirm that subject to the conditions and time limit set out in the Ruling, the rulings given in the Ruling, as amended by the above, will continue to be binding on the Canada Customs and Revenue Agency.

Yours truly,

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