25 January 1995 External T.I. 9415705 - CHILEAN LIMITADA

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

			941570
XXXXXXXXXX	S. Leung

Attention: XXXXXXXXXX

January 25, 1995

Dear Sirs:

Re: Chilean Sociedad de Responsabilidad Limitada (a "limitada")

We are writing in response to your letter of June 13, 1994 in which you requested an advance income tax ruling in respect of a limitada formed under Law No. 3,918 of Chile. Pursuant to our telephone conversation of November 23, 1994 (XXXXXXXXXX/Leung), you subsequently requested us to provide an opinion as to whether a limitada would be considered to be a corporation for the purposes of the Income Tax Act (the "Act").

Provided that the personal liability of the interest holders of a limitada is limited to the amount of their capital contributions to the limitada as stipulated in the Deed of Formation of the limitada, it is our opinion that a limitada formed under Law No. 3,918 of Chile would be a corporation for purposes of the Act.

In accordance with Interpretation Bulletin IT-392, each class of interest holding (rights, participation units or quotas) in the limitada would be considered to comprise of a single class of capital stock of the limitada consisting of 100 issued shares and each owner of a beneficial interest in each class of holding in the limitada is then considered to own a number of shares proportionate to his beneficial interest in that particular class of holding. Each amount distributed on account of profits by the limitada to its owners will be considered dividends for the purpose of the Act and the regulations made thereunder.

Yours truly,

for Director
Reorganizations and Foreign Division
Rulings Directorate
Policy and Legislation Branch