30 November 1996 Ruling 9729633 - PHANTOM STOCK PLAN

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:

Change in fact

Position:

Rulings apply as given

Reasons:

Change does not affect previous position

XXXXXXXXXX							972963
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1997

Dear Sirs:

Re: Advance Income Tax Ruling
XXXXXXXXXX
Deferred Stock Unit Plan (the "DSUP")

We are writing in response to your telephone enquiry on XXXXXXXXXX. You advised that two paragraphs of our letter #972452 of XXXXXXXXXX, 1997, (the "Original Ruling"), should be amended to reflect an additional submission of XXXXXXXXXX, as well as to meet the legal requirement of the provincial law.

We understand that the paragraphs 8(b) and 8(m) should be cancelled and replaced as follows:

8(b) Each executive who is authorized to participate in the DSUP will be given the right to elect in respect of that fiscal year whether to participate in one or both of the QPI and DSUP. If the executive elects to participate in both the QPI and the DSUP, he or she will be entitled to participate in the DSUP as to XXXXXXXXXX% of QPI awards payable, at his or her option. Each executive who elects to participate in the DSUP will enter into an agreement in writing with his or her employer reflecting his or her election to participate and the elected participation level as set forth above. XXXXXXXXXX will reserve the right to change the basis of participation in the DSUP from elective to mandatory with participation percentage set by XXXXXXXXXX, with respect to XXXXXXXXXX fiscal year and following.

8(m) If an executive dies before ceasing to be employed by XXXXXXXXXX or any subsidiary thereof, the beneficiary of the Units appointed in the executive's will or, in the absence of such beneficiary, the legal representative of the executive's estate may redeem the executive's Units by filing a written notice of redemption with the executive's employer specifying a redemption date at least five business days after the date on which the redemption notice is provided to the employer. The aggregate value of the Units so redeemed will be paid to the legal representative by the executive's employer within ten business days after the redemption date. If the beneficiary or legal representative, as the case may be, fails to file a written notice of redemption with the executive's employer before the day (the "Last Day") that is the fifth business day before the 60th day after the date on which the executive died, the beneficiary or legal representative, as the case may be, shall be deemed to have filed on the Last Day a written notice of redemption with the executive's employer for his/her Units specifying such 60th day as the redemption date. In such cases as to where the will has not been probated XXXXXXXXXX will retain the funds and credit interest on such funds from time to time at XXXXXXXXXX rate until such time as it can legally pay such funds to the beneficiary or legal representative.

We confirm that the rulings given in the Original Ruling as amended by this letter will continue to be binding in the manner set forth therein, provided that the Proposed Transactions described in the Ruling and as amended by this letter, are completed on or before XXXXXXXXXX.

Yours truly,

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