1998 Ruling 9825393 - CHANGE IN DESCRIPTION OF PROP TRANS

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:

Minor amendment to proposed plan description in ruling letter.

Position: N/A

Reasons:

No significant changes.

XXXXXXXXXX
XXXXXXXXXX 982539
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: XXXXXXXXXX
Advance Income Tax Ruling 982138, dated XXXXXXXXXX, 1998

This is in reply to your facsimile dated XXXXXXXXXX, wherein you requested an amendment to the description of terms of the “XXXXXXXXXX Deferred Stock Compensation Plan” in the above-referenced Advance Income Tax Ruling (hereinafter referred to as the “Ruling Letter”).

Any reference herein to paragraphs are references to those contained in the Ruling Letter and any defined terms used in this letter have the meanings assigned to them in the Ruling Letter.

The Ruling Letter is hereby amended as follows:

1. Subparagraph 6(b) is deleted and replaced by:

“6.(b) A Participant may elect to participate under the Plan. Each Participant who elects to participate in the Plan shall be paid that portion of his or her annual retainer fee that the Participant designates in such election, up to the maximum set by the Board, in the form of phantom share units (the “Units”). The election must be made in writing by the Participant as soon as practicable after the date on which the Plan is adopted by the Corporation. In the case of an eligible director who becomes a member of the Board after the implementation of the Plan, his or her election must be made as soon as practicable after the date on which his or her term as a member of the Board commences. A Participant may, from time to time, file a new election effective for annual retainer fees payable to that Participant after such new election is made. The Board may, at its discretion, limit the portion of the annual retainer fee for any given year in respect of an earlier election.

Notwithstanding the above change, we confirm that, subject to the conditions set out therein, the rulings given in the Ruling Letter will continue to be binding on the Department in accordance with the practice outlined in Information Circular 70-6R3, dated December 30, 1996, provided that the Plan is implemented within six months of the date of the Ruling Letter.

Yours truly,

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

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