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: 1. Whether changes to the prior ruling will have any impact on rulings given?
2. Request for extension of time to complete the proposed transactions
Position: 1. No. Minor changes.
2. Extension of time granted.
Reasons: 1. Similar to facts on prior rulings see E2006-019547 and E2006-017143.
2. Valid business reason.
XXXXXXXXXX 2006-020541
XXXXXXXXXX, 2006
Dear XXXXXXXXXX:
Re: Advance Income Tax Ruling 2006-018105
XXXXXXXXXX
XXXXXXXXXX
This is in reply to your letter of XXXXXXXXXX requesting certain changes to our advance income tax ruling number 2006-018105 (the "Ruling"). You also requested an extension of time to XXXXXXXXXX to complete the Proposed Transactions in the Ruling.
As a result of your letter, the following amendments are made to the Ruling:
1. In the Definitions XXXXXXXXXX.
2. In paragraphs 9, 14, 15, 20, 22, 25, 27 and 33 of the Proposed Transactions, the references to "XXXXXXXXXX" are replaced by "XXXXXXXXXX".
3. Paragraph 32 is deleted and replaced by:
32. The Series XXXXXXXXXX Preferred Shares will not be redeemable by ACO prior to XXXXXXXXXX. On and after that date, ACO may, XXXXXXXXXX, redeem all or any part of the outstanding Series XXXXXXXXXX Preferred Shares upon notice by the payment of cash in an amount equal to:
a) $XXXXXXXXXX per share if redeemed on or prior to XXXXXXXXXX;
b) $XXXXXXXXXX per share if redeemed after XXXXXXXXXX and on or prior to XXXXXXXXXX;
c) $XXXXXXXXXX per share if redeemed after XXXXXXXXXX and on or prior to XXXXXXXXXX:
d) $XXXXXXXXXX per share if redeemed after XXXXXXXXXX and on or prior to XXXXXXXXXX; or
e) $XXXXXXXXXX per share if redeemed after XXXXXXXXXX.
plus, in each case, all declared and unpaid dividends to the date fixed for redemption ("Series XXXXXXXXXX Preferred Share Cash Redemption Price").
Notwithstanding the amendments to the Ruling as described above, we confirm that the Ruling will continue to be binding on the Canada Revenue Agency in the manner described therein, provided the Proposed Transactions are completed by XXXXXXXXXX.
Yours truly,
XXXXXXXXXX
Manager
Section du secteur financier et des entités exonérées
Financial Sector and Exempt Entities 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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