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: Supplemental Ruling to 2012-045282
Position: YES
Reasons: Changes are minor.
XXXXXXXXXX
2012-046214
XXXXXXXXXX, 2013
Dear Sir:
Re: Supplemental Advance Income Tax Ruling
XXXXXXXXXX ("Aco")
We are writing in reply to your letter of XXXXXXXXXX in which you requested certain changes to the facts and proposed transactions described in the advance income tax ruling, 2012-045282, issued on XXXXXXXXXX, 2012 (the "Original Ruling"), on behalf of the above-referenced taxpayer. Capitalized terms used in this letter have the meanings given to them in the Original Ruling.
The Original Ruling is amended as follows:
1. Paragraph (b) of the Definitions "Aco Exchangeable Debentures" is amended to replace the number "$XXXXXXXXXX" with "$XXXXXXXXXX" in the second line.
2. Paragraph (d) of the Definitions "Aco Senior Notes" is amended to replace the words "$XXXXXXXXXX, bearing an interest rate of XXXXXXXXXX% per annum" with "$XXXXXXXXXX, bearing an interest rate of XXXXXXXXXX% per annum" in the second line.
3. The last sentence of paragraph 12 of the Original Ruling is amended to read as follows:
"Dividends amounting to approximately $XXXXXXXXXX were paid over the years to Aco on the shares of Bco and were subject to subsection 112(3) of the Act."
4. The first two sentences of paragraph 13 of the Original Ruling are amended to read as follows:
"Bco is a subsidiary of Aco (XXXXXXXXXX and Dco owned some preference shares of Bco, which were cancelled for no consideration prior to the Proposed Transactions). Bco, which is a TCC, was formerly an unlimited liability company governed by the laws of XXXXXXXXXX and was continued under the CBCA in XXXXXXXXXX to facilitate the Arrangement."
5. Paragraph 35 of the Original Ruling is amended by replacing the words "will cancel" with the words "has cancelled" after the word Bco and before the words "
its preferred shares
".
6. Paragraph 36 of the Original Ruling is amended by replacing the words "will transfer" with the words "has transferred" after the word Aco and before the words "
all issued and outstanding shares
".
7. Paragraph 37 of the Original Ruling is amended by replacing the words "will be" with the words "have been" after the word Dco and before the words "
reduced to $XXXXXXXXXX
"
8. Paragraph 38 of the Original Ruling is amended by replacing the words "will be" with the words " have been" after Dco and before the words "
wound-up into Bco
" in the first sentence and replacing the words "will distribute" with "have distributed" after Dco and before the words "
all of their respective properties
" and replacing the words "will assume" with "has assumed" after Bco and before the words "
all of the liabilities
" in the second sentence.
9. Paragraph 45(d) is amended to replace the number "XXXXXXXXXX" with "XXXXXXXXXX" after the words "
on the basis
" and before the words "
Existing Common Shares
".
10. Paragraph 45(f)(i) is amended to replace the number "$XXXXXXXXXX" with "$XXXXXXXXXX".
11. Paragraph 45(f)(iv) is amended to replace the number "XXXXXXXXXX" with "XXXXXXXXXX".
12. Paragraph 45(h) is amended to replace the numbers "XXXXXXXXXX" with "XXXXXXXXXX" before the words "
New Aco Common Shares
" and after the words "
their pro-rata share of
" and replace the number "XXXXXXXXXX" with "XXXXXXXXXX" before the words "
cashless warrants
" and before the words "
New Aco Common Shares and
".
We confirm that the rulings given in the Original Ruling, as amended by this letter, will continue to be binding on the Canada Revenue Agency ("CRA") subject to the same limitations and qualifications set out therein.
Yours truly,
XXXXXXXXXX
For Director
Financial Industries Division
Income Tax Rulings Directorate
Legislative Policy and regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2013
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2013