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: Amendment to a proposed transaction brought to our attention.
Position: Paragraph 17 and Ruling J of the original Ruling no. 2013-051419 are deleted. Confirmation that, subject to the amendments and to the conditions, limitations, qualifications, and comments set out therein, the original Ruling no. 2013-051419 (except Ruling J) will continue to be binding on the CRA.
Reasons: In compliance with the law.
XXXXXXXXXX
2014-054787
XXXXXXXXXX, 2014
Sir,
Re: Supplemental Advance Income Tax Ruling
XXXXXXXXXX
This is in reply to your letter of XXXXXXXXXX in which you advised us of a certain modification to the proposed transactions relating to the advance income tax ruling no. 2013-051419 (the "Ruling") dated XXXXXXXXXX, 2014, and requested a confirmation that this modification to the proposed transactions will not affect the advance income tax rulings given in the Ruling, except ruling J.
Capitalized terms not defined herein are as defined in the Ruling.
You advised us that the reduction of stated capital described in paragraph 17 of the Ruling will not be undertaken prior to XXXXXXXXXX. More precisely, for reasons other than Canadian tax reasons, the Note C will not be distributed by Canco3 in favour of Canco1 by way of reduction of the stated capital of the voting preferred shares. You indicated that it is possible that a portion of the Note C will be distributed in that manner in XXXXXXXXXX, subject to detailed calculations that are required for XXXXXXXXXX tax reasons.
We understand that the proposed transactions described in the Ruling, except the one described in Paragraph 17 of the Ruling, were completed before XXXXXXXXXX.
As a result of your request, the following amendments are made to the Ruling:
- Paragraph 17 of the Ruling is deleted.
- Ruling J of the Ruling is deleted.
Considering the above, we hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Ruling, as amended by this letter, the advance income tax rulings given in the Ruling (except Ruling J) will continue to be binding on the Canada Revenue Agency.
An invoice for our fees in connection with this file will be forwarded to you under separate cover.
Yours truly,
XXXXXXXXXX
for Division Director
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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