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 given in 2002-017894
Reasons: No issues raised by changes.
XXXXXXXXXX 2003-002591
XXXXXXXXXX, 2003
Dear XXXXXXXXXX:
Re: Supplemental Ruling
XXXXXXXXXX
This is in reply to your facsimile of XXXXXXXXXX, in which you requested certain changes to the proposed transactions set out in our Advance Tax Ruling dated XXXXXXXXXX, 2003, for the above-noted taxpayer (our file #2002-017894) (the "Ruling"). Consequently, the Ruling is amended as follows:
1. Paragraph 1(f) is deleted.
2. Paragraph 33 is deleted.
3. Paragraph 34 is deleted.
4. Paragraph 35 is deleted.
5. Paragraph 36 is replaced by the following:
Amalco will be created by amalgamating all of the Opcos and GPCo in an amalgamation governed by subsection 87(1).
6. Paragraph 37 is replaced by the following:
XXXXXXXXXX will subscribe for a combination of XXXXXXXXXX Units and Series 1 Trust Notes with the funds necessary for XXXXXXXXXX Trust to acquire, at fair market value, interests as limited partner in XXXXXXXXXX, and in the Operating Partnerships, which in turn will acquire all of the Net Operating Assets of each XXXXXXXXXX Business, as detailed below. Tax Deferral Elections may be filed in respect of these transactions.
7. Paragraph 39 is replaced by the following:
XXXXXXXXXX Trust will use the balance of the subscription proceeds to acquire, at fair market value, all of the interest as limited partner in XXXXXXXXXX held by Amalco. No Tax Deferral Elections will be available in respect of this transaction.
8. Paragraph 41 is replaced by the following:
Amalco will retain the cash proceeds of the sale of the Net Operating Assets and of the interest as limited partner in XXXXXXXXXX or will distribute all or a portion of such proceeds as a combination of any of: repayment of Intercompany Debt; reduction and return of paid-up capital; distribution of capital dividends to the extent of Amalco's capital dividend account, pursuant to subsection 83(2); and taxable dividends.
9. Paragraph 42 is deleted.
In accordance with the practice set out in Information Circular 70-6R5, we confirm that notwithstanding these amendments, the Ruling will continue to be binding on the Canada Customs and Revenue Agency in the manner set out in the Ruling provided that those proposed transactions amended by this supplemental ruling are carried out no earlier than XXXXXXXXXX.
Yours truly,
XXXXXXXXXX
Section Manager
For Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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