2003 Income Tax Severed Letter 2003-0048091 - Butterfly

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 amendment

Position: No effect on the rulings

Reasons:

XXXXXXXXXX 2003-004809

XXXXXXXXXX, 2003

Dear XXXXXXXXXX:

Re: Advance Income Tax Ruling issued on XXXXXXXXXX, 2003 (our reference 2003-001178) (the "Ruling")

This is in reply to your letter of XXXXXXXXXX, wherein you requested an amendment to the Proposed Transactions contained in the Ruling.

All capitalized terms have the meaning assigned in the Ruling.

Clause (ii) of paragraph 34 of the Proposed Transactions is deleted and replaced by the following:

(ii) In the case of each Gain Property, the agreed amount will be an amount that is either equal to the ACB of the Gain Property or between the ACB and the FMV of the Gain Property. [The aggregate of all agreed amounts will exceed the aggregate of all the ACB's of the Gain Properties transferred to the Holdcos by an amount equal to the total of:

(A) 4/3 of the amount of charitable gifts available for carry forward that DC is permitted to deduct under paragraph 110.1(1)(a) in its XXXXXXXXXX taxation year and which has not been deducted in a previous taxation year, and

(B) the amount, if any, by which

(x) the aggregate of the capital losses on the Loss Properties being transferred to the Holdcos, the capital losses on the Loss Limited Partnership Units plus any other capital losses that are realized by DC after XXXXXXXXXX, and before each Effective Date or which are available for carry forward into the XXXXXXXXXX taxation year,

exceeds

(y) the aggregate of any capital gains as may have been realized by DC after XXXXXXXXXX and before the Effective Date];

We confirm that the above amendment will not have any effect on the rulings given in the Ruling.

Yours truly,

XXXXXXXXXX
Manager
Corporate Reorganizations Section 1
Reorganizations and Resources Division
Income Tax Rulings Directorate
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