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: Additional ruling in respect of our letter 2018-077896 requested regarding how subsection 107.4(2.1) will apply.
Position: Ruling 1.5.1 in the original ruling letter is revised to incorporate the request.
Reasons: The law is clear.
XXXXXXXXXX 2019-079277
XXXXXXXXXX, 2019
Dear XXXXXXXXXX:
Re: XXXXXXXXXX
Supplemental Advance Income Tax Ruling
We are writing in connection with our recent discussions (XXXXXXXXXX) in regard to our advance income tax ruling number 2018-077896, that was issued to the above-referenced taxpayer on XXXXXXXXXX (the “Original Ruling”).
Capitalized terms used in this letter, but not defined herein, have the meanings given to them in the Original Ruling.
As requested, the Original Ruling is amended as follows:
Paragraph 1.5.1 of the Original Ruling is amended to read as follows:
1.5.1 Each transfer of the Transfer Percentage of a property by a Participating XXXXXXXXXX Public Fund to its corresponding New Fund, as described above in paragraph 1.3.7, will be a “qualifying disposition” within the meaning of subsection 107.4 (1). In regard to the proposed transactions in paragraph 1.3.10 above, for the purpose of applying paragraph 107.4(2)(a), if all of the requirements in subsection 107.4(2.1) are met, that subsection will apply once in respect of each class of identical shares held by a particular Participating XXXXXXXXXX Public Fund.
We confirm that the rulings given in the Original Ruling, as modified by this letter, will continue to be binding on the Canada Revenue Agency subject to the same limitations and qualifications set out in the Original Ruling and in Information Circular 70-6R8 Advance Income Tax Rulings and Technical Interpretations, dated November 1, 2018.
An invoice for our fees in connection with this supplementary ruling request will be forwarded to you under separate cover.
Yours truly,
XXXXXXXXXX
For Division Director
Financial Industries and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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