Principal Issues: 1. Whether the variation will, in and of itself, result in a resettlement of the trust or disposition (as defined in subsection 248(1)) of the existing common shares of corporation held by the trust or any other assets held by the trust? 2. Whether the variation will, in and of itself, result in a disposition of the income or capital interest of any beneficiary of the trust for purposes of subsections 106(2) and 107(1) and the definition of "disposition" in subsection 248(1)? 3. Whether, subject to subsection 107(2.001), subsection 107(2) will apply to the trust distribution of the common shares of the corporation to the beneficiaries of the trust, in partial satisfaction of their capital interests in the trust? 4. Whether subsections 56(2), 105(1), and 246(1) will not be applicable solely as a consequence of the proposed transactions? 5. Whether section 245 will be applicable to re-determine the tax consequences of the proposed transactions? 6. Whether section 86 will apply to certain proposed transactions so that those transactions will occur on a tax-deferred basis? 7. Whether the deemed disposition of the Class B preferred shares will result in any tax liability to the trust?
Position: 1. No, 2. No, 3. Yes, 4. No, 5. No, 6. No, 7. No ruling given
Reasons: 1. and 2. - Variation, in and of itself, is limited in scope to adding administrative and discretionary powers only. 3 to 6 - Consistent with rulings previously issued. 7. - We do not rule on FMV.
