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.
Principal Issues: Changes to the proposed transactions described in the advance income tax ruling no. 2005-012598.
Position: Confirmation that, subject to the conditions, limitations, qualifications and comments set out therein, the original ruling no. 2005-012598 will continue to be binding on the CRA.
XXXXXXXXXX 2005-016313
XXXXXXXXXX, 2005
Dear Sirs:
Re: XXXXXXXXXX
Advance Income Tax Ruling 2005-012598
This is in reply to your letter of XXXXXXXXXX in which you advised us of certain changes to the proposed transactions described in the advance income tax ruling number 2005-012598 dated XXXXXXXXXX, 2005 (the "Ruling").
As a result of your letter, the following amendments are made to the Ruling:
The first two sentences of Paragraph 30(ii) of the Ruling are changed to read as follows:
Amalco I will transfer all of the issued and outstanding shares of the capital stock of Target Opco to Buyerco for FMV consideration. The consideration for this transfer will be paid in full by Buyerco by the issuance to Amalco I of redeemable and retractable preferred shares, and common shares.
The second sentence of Paragraph 30(iii) of the Ruling is changed to read as follows:
As a consequence, all of the assets and liabilities of Target Opco and Buyerco will become assets and liabilities of Amalco II, and all the shares of the capital stock of Target Opco will be cancelled.
You advised us that, apart from the amendments described above, there are no other changes to the Facts, Proposed Transactions and Purposes of the Proposed Transactions described in the Ruling. You also advised us that none of the Proposed Transactions described in the Ruling, as amended by this letter, has been completed. Finally, you advised us that the Facts, Proposed Transactions and Purposes of the Proposed Transactions described in the Ruling, as amended by this letter, still constitute a complete and accurate disclosure of all relevant facts and transactions relating to the consolidation of the businesses of Buyerco and Target Opco.
Considering the above, we hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Ruling, as amended by this letter, the rulings given therein will continue to be binding on the Canada Revenue Agency.
An invoice for our fees in connection with this ruling request will be forwarded to you under separate cover.
Yours truly,
XXXXXXXXXX
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Planning Branch
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