30 November 1995 Ruling 9636193 - DISPOSITION

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:

The ruling given in paragraph 38(i), states:

The Proposed Transactions described in paragraphs 27, 28, 29 and 31 will not, in and of themselves, result in the disposition by unitholders of all or part of their units in a Fund within the meaning of the definition of "disposition" in section 54 of the Act.

Can the above wording be amended to delete the reference to section 54 and state that there will be no disposition for purposes of the Act? The concern expressed by the representative is that the definition of disposition in section 54 is an inclusive one and does not fully address whether Revenue Canada would consider there to be as disposition for purposes of the Act.

Position:

Yes.

Reasons:

While typically we do include a section reference, in this case Revenue Canada does not consider there to have been a disposition for purposes of the Act. There is precedence for this type of a ruling; see, for example, E9507433 and E9416733. Also note that a ruling XXXXXXXXXX was provided in E9626753; XXXXXXXXXX

XXXXXXXXXX				963619

Attention: XXXXXXXXXX

XXXXXXXXXX, 1996

Dear Sirs/Mesdames:

Re: XXXXXXXXXX
Advance Income Tax Ruling No. 961004
Dated XXXXXXXXXX, 1996 ( the "Ruling Letter")

This is in reply to your letter dated XXXXXXXXXX, wherein you requested that paragraph 38(i) of the Ruling Letter be deleted and replaced with the following:

38. (i)The Proposed Transactions described in paragraphs 27, 28, 29 and 31 will not, in and of themselves, result in the disposition by unitholders of all or part of their units in a Fund for purposes of the Act.

We confirm that the Ruling Letter as amended above will remain binding on Revenue Canada as and to the extent described in the Ruling Letter.

Yours truly,

for Director
Resources, Partnerships and
Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch