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: None.
XXXXXXXXXX 2006-017734
XXXXXXXXXX
XXXXXXXXXX, 2006
Dear XXXXXXXXXX:
Re: XXXXXXXXXX (Business No. XXXXXXXXXX , XXXXXXXXXX TSO, XXXXXXXXXX Taxation Centre)
XXXXXXXXXX (Business No. XXXXXXXXXX , XXXXXXXXXX TSO, XXXXXXXXXX Taxation Centre)
XXXXXXXXXX (Business No. XXXXXXXXXX , XXXXXXXXXX TSO, XXXXXXXXXX Taxation Centre)
XXXXXXXXXX (Business No. XXXXXXXXXX TSO, XXXXXXXXXX Taxation Centre)
XXXXXXXXXX (Business No. XXXXXXXXXX )
(collectively, the "Taxpayers")
This is in reply to your fax dated XXXXXXXXXX in which you requested amendments to the Advance Income Tax Ruling letter # 2006-017734 (the "Ruling") issued to the Taxpayers on XXXXXXXXXX, 2006.
Following our review of your request, the following changes are made to the Ruling:
1- In the definition of Exchange Right, the words "made following a reorganization" are added in the second sentence after the words "The number of New Fund Units issued on such exchange"
2- The following changes are made to Paragraph 30:
a. The third sentence ends with the word "consideration".
b. The words "subject to the terms of the trust indenture of New Fund" at the end of the third sentence and the word "Each" at the beginning of the fourth sentence are replaced by "Subject to the terms of the trust indenture of New Fund, each".
3- In Paragraph 33, the words "1 general partner unit" in the second sentence are replaced by "general partner units".
4- In the last sentence of the first paragraph of subparagraph a. of Paragraph 65, the words "New Trust" are replaced by the words "New Fund".
5- The following changes are made to Paragraph 78:
a. The reference to "BCo Common Shares" is replaced by a reference to "BCo New Common Shares".
b. The words "The agreed amount in respect of the XXXXXXXXXX GP Shares transferred will be equal to the adjusted cost base to BCo of the XXXXXXXXXX GP Shares and the XXXXXXXXXX LP Exchangeable Units transferred", in the last sentence of the second paragraph are replaced by the words "The agreed amount in respect of the XXXXXXXXXX GP Shares and the XXXXXXXXXX LP Exchangeable Units transferred will be equal to the adjusted cost base to BCo of the XXXXXXXXXX GP Shares and the XXXXXXXXXX LP Exchangeable Units transferred, respectively,".
6- The following changes are made to ruling C:
a. In paragraph (b), the word "DCo" is replaced by "DCo Amalco".
b. In paragraph (f), the word "Acquisitionco" is replaced by "DCo MergerCo".
7- In paragraph b) of ruling J, the word "DCo" is replaced by "DCo Amalco".
8- The following changes are made to ruling P:
a. The references to Paragraph 60 are replaced by references to Paragraph 63.
b. The words "(or the amount ultimately considered to be the agreed amount)" are added in paragraph (b) after the words "agreed amount" and before the words "referred to".
9- Paragraphs (a) and (b) of ruling Q are replaced by the following:
(a) the amount included in A of the definition of the "cumulative eligible capital" in respect of Operating LP by virtue of the acquisition of the CCo Operating Assets (other than the CCo Provincial Operating Assets previously transferred) as described in paragraph 63 will be equal to 3/4 of the agreed amount (or the amount ultimately considered to be the agreed amount) referred to in Paragraph 63 in respect of the eligible capital property included in such CCo Operating Assets;
(b) the amount included in paragraph (a) of E of the definition of the "cumulative eligible capital" in respect of Operating LP by virtue of the disposition of the DCo Amalco Non-Operating Assets as described in paragraph 63 will be equal to the fair market value of the eligible capital property included in such DCo Amalco Non-Operating Assets (3/4 of which will be included in amount E of the definition of "cumulative eligible capital"); and
Notwithstanding the above-mentioned changes, we confirm that the rulings given in the Ruling, as amended above, will continue to be binding on the Canada Revenue Agency in the manner described therein.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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© Her Majesty the Queen in Right of Canada, 2006
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