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: Minor change to Trust Indenture
Position: Amended paragraph 21(g) of the Ruling
Reasons: Change does not affect ruling provided
XXXXXXXXXX 2007-024127
XXXXXXXXXX , 2007
Dear XXXXXXXXXX :
Re: Advance Income Tax Ruling 2007-022628
XXXXXXXXXX ("LP") BN XXXXXXXXXX
XXXXXXXXXX . ("Finco") BN XXXXXXXXXX
This is in reply to your letter of XXXXXXXXXX, wherein you request the following amendment to our advance income tax ruling number 2007-022628 (the "Ruling") issued XXXXXXXXX, 2007 on behalf of the above-named organizations.
As requested, paragraph 21(g) of the Ruling is deleted and replaced with the following:
"If performance liquidated damages are received by the XXXXXXXXXX Entities from the contractor in respect of the Projects, LP will either: (i) make a prepayment under the Senior On-lending Credit Agreement and Finco must apply such funds to purchase or redeem the Senior Bonds, provided that the amount applied to purchase or redeem the Senior Bonds must not exceed XXXXXXXXXX% of the principal amount of the Senior Bonds in the first XXXXXXXXXX years following Financial Close; or (ii) deposit such funds into a sinking fund for use exclusively to pay principal on the Senior On-lending Credit Agreement as and when principal becomes payable."
We confirm that the Ruling, as amended herein, remains binding on the Canada Revenue Agency subject to the same limitations and qualifications set out in the Ruling.
Yours truly,
XXXXXXXXXX
For Director
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, 2007
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© Sa Majesté la Reine du Chef du Canada, 2007
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