2019 Ruling 2019-0796351R3 - Supplemental Advance Income Tax Ruling

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: Minor change in proposed transactions - dividend rate.

Position: Accepted.

Reasons: No impact on rulings given.

XXXXXXXXXX						2019-079635

XXXXXXXXXX, 2019

Dear Sirs:

Re: Supplemental Advance Income Tax Ruling
XXXXXXXXXX

We are writing in response to your email correspondence of XXXXXXXXXX, and our telephone conversation (XXXXXXXXXX), wherein you requested an amendment to the proposed transactions described in advance income tax ruling 2018-078020 (the “Original Ruling”) issued on XXXXXXXXXX. Unless otherwise defined, all capitalized terms in this letter have the meanings assigned to them in the Original Ruling.

In particular, you informed us that subparagraph 16.iii. of the Original Ruling contains an unintentional error with respect to the dividend entitlement of the Opco Class B Special shares and that subparagraph 16.iii. of the Original Ruling should be amended to read as follows:

iii. entitle the holder to non-cumulative dividends at a rate between XXXXXXXXXX% and XXXXXXXXXX% of the redemption price, as and when declared by the board of directors of Opco to the exclusion of any other class of shares;

We hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Original Ruling and Information Circular IC70-6R8 dated November 1, 2018, that the above-noted change will not, in and of itself, invalidate or otherwise affect the rulings given in the Original Ruling.

Yours truly,

XXXXXXXXXX
For Division Director
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch