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.
XXXXXXXXXX
XXXXXXXXXX 1-982905
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1998
Dear Sirs:
Re: XXXXXXXXXX
XXXXXXXXXX
Advance Income Tax Ruling 3-981783
dated XXXXXXXXXX, 1998 as amended by our
letter of XXXXXXXXXX, 1998
(collectively, the "Amended Ruling")
We are writing in response to your letter of XXXXXXXXXX, wherein you requested changes to the Facts in the Amended Ruling. Terms defined in the Amended Ruling to have a certain meaning have the same meaning when used in this letter.
As a result of your letter the following changes are made to the Amended Ruling:
1. In paragraph 3, line 7, delete the words "XXXXXXXXXX Preferred Shares having a redemption amount of $XXXXXXXXXX" and replace with the words "XXXXXXXXXX Preferred Shares having an aggregate redemption amount equal to the fair market value of the property for which they were issued".
2. Delete paragraph 13 and replace with:
"13. As part of various separate series of transactions, which allowed for the utilization of losses within the related corporate group XXXXXXXXXX,
(a) XXXXXXXXXX issued:
(i) XXXXXXXXXX;
(ii) XXXXXXXXXX;
(iii) XXXXXXXXXX;
(iv) XXXXXXXXXX.
XXXXXXXXXX;
(v) XXXXXXXXXX.
XXXXXXXXXX
(vi) XXXXXXXXXX.
(b) XXXXXXXXXX issued:
(i) XXXXXXXXXX;
(ii) XXXXXXXXXX;
(ii.1) XXXXXXXXXX;
(ii.2) XXXXXXXXXX;
(iii) XXXXXXXXXX
(iv) XXXXXXXXXX.
(c) XXXXXXXXXX issued:
(i) XXXXXXXXXX;
(ii) XXXXXXXXXX;
(ii.1) XXXXXXXXXX;
(ii.2) XXXXXXXXXX;
(iii) XXXXXXXXXX;
(iv) XXXXXXXXXX.
(d) XXXXXXXXXX issued:
(i) XXXXXXXXXX
(ii) XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
As a result of the transactions described below, the XXXXXXXXXX shares held by XXXXXXXXXX were replaced by interest-bearing demand promissory notes which have an aggregate fair market value of $XXXXXXXXXX and ACB to XXXXXXXXXX of $XXXXXXXXXX (these are the XXXXXXXXXX Notes described in paragraph 5 above) and the XXXXXXXXXX shares owned by XXXXXXXXXX were replaced by interest-bearing demand promissory notes from XXXXXXXXXX which have an aggregate fair market value of $XXXXXXXXXX and ACB to XXXXXXXXXX of $XXXXXXXXXX (these are the XXXXXXXXXX Notes described in paragraph 9 above).
The transactions which resulted in the creation of the XXXXXXXXXX Notes and the XXXXXXXXXX Notes were as follows:
On XXXXXXXXXX:
(a) XXXXXXXXXX a wholly-owned subsidiary of XXXXXXXXXX, advanced $XXXXXXXXXX to XXXXXXXXXX and XXXXXXXXXX issued demand promissory notes having an aggregate principal amount and fair market value of $XXXXXXXXXX to XXXXXXXXXX.
(b) XXXXXXXXXX advanced $XXXXXXXXXX to XXXXXXXXXX and XXXXXXXXXX issued demand promissory notes having an aggregate principal amount and fair market value of $XXXXXXXXXX to XXXXXXXXXX.
(c) XXXXXXXXXX advances $XXXXXXXXXX to XXXXXXXXXX and XXXXXXXXXX issued a demand promissory note with a principal amount and fair market value of $XXXXXXXXXX to XXXXXXXXXX.
On XXXXXXXXXX
(d) XXXXXXXXXX repaid its promissory note payable to XXXXXXXXXX with cash of $XXXXXXXXXX.
(e) XXXXXXXXXX paid $XXXXXXXXXX to XXXXXXXXXX in satisfaction of the aggregate redemption amount of its XXXXXXXXXX Preference shares.
(f) XXXXXXXXXX paid $XXXXXXXXXX to XXXXXXXXXX in satisfaction of the aggregate redemption amount of its XXXXXXXXXX Preference shares.
(g) XXXXXXXXXX subscribed for XXXXXXXXXX Preferred shares of XXXXXXXXXX having an aggregate redemption amount and PUC of $XXXXXXXXXX for cash.
On XXXXXXXXXX was wound up into XXXXXXXXXX. At that time, all of XXXXXXXXXX properties, including the XXXXXXXXXX Notes, were distributed to XXXXXXXXXX."
3. In paragraph 18, line 1, delete the number "XXXXXXXXXX" and replace with the number "XXXXXXXXXX".
We confirm that, notwithstanding the changes described in this letter, the rulings given in the Amended Ruling will continue to be binding in the manner indicated therein.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
??
3
.../cont'd
.../cont'd
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1998
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1998
Email this Content