30 November 1996 Ruling 9708823 - MUTUAL FUND SELLING COMMISSIONS

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:

Whether changes will adversely affect the original ruling.

Position: No.

Reasons:

Changes are minor.

XXXXXXXXXX							970882
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1997

Dear Sirs:

Re: Advance Income Tax Ruling - Supplementary
XXXXXXXXXX

We are writing in reply to your letters dated XXXXXXXXXX requesting certain revisions to the advance income tax ruling issued with respect to the above-noted parties dated XXXXXXXXXX, 1997 and bearing our file number 963804 (the "Ruling").

To the extent applicable, terms defined in the Ruling have the same meaning where used herein.

We acknowledge your advice that certain developments contemplated in the Ruling occurred prior to the date of the Ruling, namely that (a) with respect to paragraphs 1(f), 4, 8 and 9 of the Ruling, the filing of the simplified prospectus for the XXXXXXXXXX occurred on XXXXXXXXXX and (b) with respect to paragraph 4 of the Ruling, preliminary simplified prospectuses were filed prior to the date of the Ruling in respect of each of the Funds in XXXXXXXXXX.

In addition, the Ruling is hereby amended as follows.

28. (b)The Partnership has arranged a credit facility with a Canadian chartered bank (the "Bank") which allows the Partnership to borrow up to a maximum of $XXXXXXXXXX after the initial closing of the Offering, anticipated to occur on XXXXXXXXXX. Interest will be payable monthly at the prime rate plus XXXXXXXXXX%. In addition, an arrangement fee in the amount of $XXXXXXXXXX will be paid to the Bank by the General Partner on behalf of the Partnership.

The obligations of the Partnership will be secured. A monitoring fee of $XXXXXXXXXX and a standby fee of XXXXXXXXXX (calculated on the unused portion) are payable monthly under this arrangement.

40.Beginning in XXXXXXXXXX, the Partnership will distribute in cash to each Limited Partner of record on the last day of a calendar quarter, within XXXXXXXXXX after the end of each calendar quarter, the Limited Partner's pro rata share of XXXXXXXXXX% of the amount by which the Partnership's gross income for the calendar quarter and the amount of any reserves, if any, retained at the end of the previous calendar quarter, exceeds the Partnership's expenses for the calendar quarter and a reasonable reserve for operating expenses established for the current calendar quarter. The remaining XXXXXXXXXX% of such amount shall be for the account of the General Partner. Notwithstanding the foregoing, the General Partner has the discretion to make such distributions annually within the first XXXXXXXXXX of the following calendar year (rather than quarterly during the fiscal year to which the distributions relate), to each Limited Partner of record on the last day of the previous fiscal year where such distribution is necessary to minimize the likelihood of a negative adjusted cost base arising at the end of any fiscal year. The Partnership may, in addition, make a distribution at any other time.

We confirm that the Ruling, as herein amended, remains binding on the Department as and to the extent otherwise set out in the Ruling.

Yours truly,

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