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 certain pre-butterfly property acquisitions by DC or certain corporations controlled by DC would affect the rulings granted.
Position: No.
Reasons: The acquisitions of property are permitted under subparagraph 55(3.1)(a)(iv)
XXXXXXXXXX
XXXXXXXXXX 1-990012
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1999
Dear Sirs:
Re: XXXXXXXXXX
Advance Income Tax Ruling 980097 dated XXXXXXXXXX, 1998
We are writing in response to your letters of XXXXXXXXXX wherein you advised us of certain additional transactions which were carried out in contemplation of the Arrangement described in an advance income tax ruling 980097 dated XXXXXXXXXX, 1998 (the "Ruling Letter").
Included in the assets of Business 3 of DC which were transferred by DC Amalco to Transferee2 as described in paragraph 29 of the Ruling Letter were the shares of XXXXXXXXXX. Prior to the implementation of the Arrangement, the shares of XXXXXXXXXX were owned by XXXXXXXXXX ("Finco"), XXXXXXXXXX a subsidiary wholly-owned corporation of DC, while all of the shares of XXXXXXXXXX were owned by DC. Prior to the transfer of the assets of Business 3 as described in paragraph 29 of the Ruling Letter, each of XXXXXXXXXX distributed its property which was not related to Business 3 as a dividend in kind to Finco and DC, respectively, and thereafter, Finco distributed the shares of XXXXXXXXXX as a dividend in kind to DC. Although these transactions resulted in property becoming property of DC or a corporation controlled by it in contemplation of and before the Arrangement, such transactions are all specifically permitted under either clause 55(3.1)(a)(iv)(A) or (B) of the Income Tax Act.
In our opinion, the additional transactions described herein will not affect the rulings given in the Ruling Letter, as amended by our letter of XXXXXXXXXX, 1998.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
??
2
.../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, 1999
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, 1999
Email this Content