12 September 1995 External T.I. 9523135 - ATR69

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.

Principal Issues:

basis for ATR

Position TAKEN:

change of control triggering event of default even where not specified.

Reasons FOR POSITION TAKEN:

ATR 69

		952313
XXXXXXXXXX	S.J. Tevlin

Attention: XXXXXXXXXX

September 12, 1995

Dear Sirs:

Re: Income Tax Ruling ATR-69

We are writing in response to your letter of August 29, 1995 wherein you asked that we clarify that the loan documentation upon which ATR-69 was based provided that the failure to make the Change of Control Offer required upon the occurrence of a Change of Control Triggering Event (described in paragraph 4 of the ATR) was an event of default, but the Change of Control Triggering Event was not, in and of itself, included or listed as an event of default in the documentation.

We confirm that the above description of the loan documentation underlying ATR-69 is correct. In general it is our view that a loan containing the Change of Control Triggering Event may qualify for the subparagraph 212(1)(b)(vii) exemption from withholding tax even where such a provision is not a specified event of default under the terms of the loan.

We trust our comments will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch