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
Position: See below.
Reasons: See below.
XXXXXXXXXX 2013-047724
XXXXXXXXXX, 2013
Dear XXXXXXXXXX
Re: XXXXXXXXXX
Further to your request for an amendment to our Advance Income Tax Ruling dated XXXXXXXXXX, 2012, our file number 2011-040329 (the "Ruling"), issued to the above named taxpayer, the Ruling is amended by:
1) Replacing the definition of "Foreignco2 Notes" by the following definition to reflect that those notes are interest bearing:
"Foreignco2 Notes" means one or more promissory notes issued by Foreignco2 to Sellco1. The Foreignco2 Notes will be denominated in Country 1 Currency prepayable at will, and repayable on demand.
2) Amending Paragraph 48 by inverting the words "Sellco1" and "Sellco5".
3) Amending Paragraph 52 by replacing the words "equal to the excess of the safe-income on hand of Keepco3 over the amount of the principal of the note described in this Paragraph" by the words "of $XXXXXXXXXX".
4) Amending Paragraph 62 by deleting the words "or the shares of Keepco2".
5) Amending Paragraph 75 by replacing the word "cash" by the words "additions to intercompany accounts".
6) Amending Paragraph 81 by replacing the reference to "Paragraph 75" by a reference to "Paragraph 74".
7) Replacing Paragraph 82 by the following:
Should the New Common Shares of Amalco be taxable Canadian property at the time of their disposition by Foreignco3 as described in Paragraph 78, all or substantially all of the XXXXXXXXXX property situated in Canada, before taking into account any modification to the definition of XXXXXXXXXX property provided under paragraph XXXXXXXXXX of Article XXXXXXXXXX of the Treaty, from which those shares derive their value is property in which the business of Amalco and its subsidiaries is carried on."
8) Amending item a) of Ruling F by replacing the words "Keep Shares owned by Amalco" by the words "Keep Shares owned by Canco".
We confirm that the rulings in the Ruling remain binding on the Canada Revenue Agency subject to the same limitations and qualifications set out in the Ruling.
Yours truly,
XXXXXXXXXX
Section Manager
for Division Director
Reorganizations 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
Email this Content