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:
DPS Financing- Small change requested
Position:
Accept
Reasons:
Corporation in financial difficulty
XXXXXXXXXX 963567
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1996
Re: XXXXXXXXXX
Advance Income Tax Ruling 962539 (the "Ruling")
This is in response to your enquiry of XXXXXXXXXX wherein you requested an amendment to the Ruling dated XXXXXXXXXX, 1996.
The Ruling is amended to clarify that the XXXXXXXXXX loans currently owing by XXXXXXXXXX as stated in paragraph 27 of the
Ruling may not be combined into one (1) loan prior to the issuance of the distress preferred shares in replacement for such debt. You advise that at such time as XXXXXXXXXX is able to eliminate the executions which now exist between its existing XXXXXXXXXX debentures and the new debenture, the existing XXXXXXXXXX debentures will be discharged. This change in facts and proposed transactions will only take place to maintain the current security position of XXXXXXXXXX, and ensure that such security positions is not disrupted by the new security package, and the distress preferred share issue.
We confirm that the Ruling as amended above will continue to be binding in the manner set forth herein.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1995
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© Sa Majesté la Reine du Chef du Canada, 1995
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