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: Modifications to the facts and proposed transactions brought to our attention.
Position: Confirmation that, subject to the conditions, limitations, qualifications, and comments set out therein, the modifications will not affect the opinions provided in Letter no. E 2008-026804R3.
Reasons: In compliance with the law and comfort letter issued by the Department of Finance.
XXXXXXXXXX 2008-027544
XXXXXXXXXX, 2008
Dear Sir:
Re: Advance Income Tax Ruling
XXXXXXXXXX
This is in reply to the e-mail of XXXXXXXXXX from XXXXXXXXXX in which you advised us of certain modifications to the facts and proposed transactions relating to the letter no. 2008-026804 dated XXXXXXXXXX , 2008 (hereinafter, the "Letter"), and requested a confirmation that these modifications will not affect the opinions provided in the Letter.
Capitalized terms not defined herein are as defined in the Letter.
1) Redemption of shares of the capital stock of NewSubco
You advised us that, contrary to what was contemplated in Paragraph 64 of the Letter, the XXXXXXXXXX redeemable XXXXXXXXXX shares of the capital stock of NewSubco owned by TargetSubco III have already been redeemed for FMV consideration XXXXXXXXXX .
2) Redemption of the XXXXXXXXXX shares, XXXXXXXXXX , of the capital stock of XXXXXXXXXX
You advised us that, contrary to what was contemplated in Paragraph 55 of the Letter, the XXXXXXXXXX shares, XXXXXXXXXX , of the capital stock of Target will not be redeemed.
Rather, the XXXXXXXXXX shares, XXXXXXXXXX , of the capital stock of Amalco II (XXXXXXXXXX ) will be redeemed for cash consideration after the date on which the XXXXXXXXXX will be effective.
You also advised us that Amalco II will use cash damming techniques in order to ensure that the cash that will be used to redeem the XXXXXXXXXX shares, XXXXXXXXXX , of the capital stock of Amalco II is not commingled with the cash that was property owned by Target immediately before the amalgamation of Target and Newco I, as described in Paragraph 63 of the Letter.
3) Confirmation
Considering the above, we hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Letter, the modifications to the facts and proposed transactions relating to the Letter and described above will not affect the opinions provided in the said Letter.
An invoice for our fees in connection with this file will be forwarded to you under separate cover.
Yours truly,
XXXXXXXXXX
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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