2096 Ruling 9529653 - XXXXXXXXXX

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.

		952965
XXXXXXXXXX	

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling Request

This is in response to your letter of XXXXXXXXXX, in which you requested an advance income tax ruling on behalf of the above referenced taxpayer. We also acknowledge your subsequent correspondence dated XXXXXXXXXX, which further clarified the facts and proposed transactions described below.

We understand that to the best of your knowledge and that of the taxpayers involved:

(i)none of the issues involved in the requested rulings are being considered by a district taxation office or a taxation centre in connection with a tax return already filed, and

(ii)none of the issues involved in the requested rulings are the subject of any notice of objection or is under appeal.

Our understanding of the facts is as follows:

FACTS

XXXXXXXXXX

XXXXXXXXXX

RULINGS

Provided that the preceding statements constitute a complete and accurate disclosure of all of the relevant facts, proposed transactions and purpose of the proposed transactions, and provided that the proposed transactions are completed in the manner described above, our rulings are as follows:

A.XXXXXXXXXX will be considered to be an association organized for any other purpose except profit with no part of its income payable to or otherwise available for the personal benefit of any member so that in any year in which it in fact operates on that basis, (this being a matter on which we do not rule since it is a question of fact the determination of which can only be made retrospectively for each taxation year) it will qualify for that year as a non-profit organization under paragraph 149(1)(l) of the Act and will be exempt from Part I tax upon its, otherwise, taxable income.

B.For any taxation year throughout which XXXXXXXXXX is exempt from Part I tax under paragraph 149(1)(l) of the Act, it will be exempt from Part I.3 tax by virtue of subparagraph 181.1(3)(c) of the Act.

The above rulings are given subject to the limitations and qualifications set out in Information Circular 70-6R2, dated September 28, 1990, and the Special Release thereto dated September 30, 1992, and are binding provided that the proposed transactions are completed by XXXXXXXXXX These rulings are based on the Act in its present form and do not take into account any proposed amendments to the Act.

Yours truly,

R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch