30 November 1996 Ruling 9703113 - DPS

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: revised facts

Position: do not affect rulings given

Reasons: immaterial

XXXXXXXXXX							970311
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1997

Dear Sirs:

Re: XXXXXXXXXX

We are writing in response to your letter dated XXXXXXXXXX wherein you requested certain amendments to advance income tax ruling #963136 dated XXXXXXXXXX, 1996 (the, "Ruling") with respect to the above noted taxpayers.

As a result of your letter the following amendments are made to the Ruling:

1.Line 2 in paragraph 2 on page 2 is amended to delete the reference to "943301" and to substitute "950972".

2.Line 4 in paragraph 10 on page 5 is amended to delete the amount of "$XXXXXXXXXX" and replace it with the amount of "$XXXXXXXXXX".

3.Line 2 in paragraph 14 on page 6 is amended to delete the amount of "$XXXXXXXXXX" and replace it with the amount of "$XXXXXXXXXX".

4.Paragraph 15 on page 6 is deleted and replaced as follows: "The monthly preferential dividends described in paragraph 39(d) of Initial Ruling will be increased (the "additional dividends") in order to substantially compensate XXXXXXXXXX for the payment XXXXXXXXXX described in paragraph 14 above. It is estimated that the additional dividends will increase by approximately XXXXXXXXXX%, the total dividends to be paid on the Initial Ruling Shares over their five year term. Presuming a closing on XXXXXXXXXX approximately XXXXXXXXXX% of the additional dividends will be paid on closing. The remaining additional dividends will be payable in equal monthly amounts over the remainder of the 5 year term, however, in the event that XXXXXXXXXX or the Lenders exercise their rights under the Put\Call Agreements as described in paragraph 53 of the Initial Ruling any remaining additional dividends will become payable at that time."

We confirm that the above changes will not otherwise affect the rulings given in the Ruling and they will continue to be binding on the Department as indicated therein.

Yours truly,

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