7 July 1998 Income Tax Severed Letter 9819893 - Supplement to number 980214

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.

SUMMARY: Supplement to number 980214—ITA-212(1)(b)(vii), 18(9.1)—Advance income tax ruling - Amendments to advance income tax ruling number 980214 issued in 1998.

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: Owing to proposed changes in both the bond and debenture indentures resulting from the ongoing process leading up to the offer of redemption of the debts we received a request, following the issuance of the Ruling, for several minor amendments to the proposed transactions. POSITION TAKEN: Requested amendments were incorporated into the Ruling by way of a Supplementary Ruling document. REASONS FOR POSITION TAKEN: While the amendments viewed collectively do not affect the Rulings given, the “proposed transactions” as set out in the Ruling should accurately reflect the taxpayers intentions. XXXXXXXXXX 981989 XXXXXXXXXX

Attention: XXXXXXXXXX XXXXXXXXXX, 1998 Dear Madam: Re: Advance Income Tax Ruling XXXXXXXXXX # 980214 (the “Ruling”) This is in reply to your letter dated XXXXXXXXXX in which you requested certain amendments to the Ruling issued to the above-referenced taxpayer on XXXXXXXXXX, 1998. Following our review of your request, the Ruling is revised as follows: 1. In paragraph 12 line 1, the words “$XXXXXXXXXX by way of a public offering” are replaced by the words “$XXXXXXXXXX by way of a public offering or a private placement” 2. Paragraph 14 v) is deleted. Paragraph 14 iv) is amended by inserting the following sentence at the end of the paragraph:

Delete section XXXXXXXXXX to remove the negative covenants of the borrower from the Bond XXXXXXXXXX Indenture. 3. In paragraph 16 v), immediately before the first sentence beginning with the words “Modify sections XXXXXXXXXX”, insert the following:

Modify section XXXXXXXXXX to replace “Affiliate” with “subsidiary”. This amendment deals solely with procedural aspects of holders rights. 4. Under the heading OTHER INFORMATION, insert the following paragraph

Opco has been notified that XXXXXXXXXX may make a takeover bid for all of the outstanding common shares of Opco at the same time that Opco enters into the proposed transactions outlined herein and conditional on such transactions proceeding. Notwithstanding the above-mentioned changes, we confirm that the Ruling will continue to be binding on the Department in the manner described therein, provided that the proposed transactions are completed before XXXXXXXXXX. Yours truly, for Director Financial Industries Division Income Tax Rulings and Interpretations Directorate Policy and Legislation Branch