1999 Ruling 9904323 - INTEREST DEDUCTIBILITY

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 990432
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1999

Dear Sirs:

Re: XXXXXXXXXX

This is in response to your letter of XXXXXXXXXX, regarding the advance income tax ruling (our file 982631) issued to your firm on XXXXXXXXXX, 1999, on behalf of the above-noted taxpayer.

You have advised that the refinancing has not yet taken place and that due to concerns over foreign exchange gains there will be slight modifications to the proposed transactions described therein.

In particular, paragraphs 10 and 12 of the advance income tax ruling are amended to clarify that the XXXXXXXXXX Prefco shares and the XXXXXXXXXX shares being subscribed for are to be denominated in Canadian dollars not US. dollars. Paragraph 11 is amended to state that the dividends will be payable quarterly not annually at a rate equal to the interest payable on the New Loan expressed in Canadian dollars plus XXXXXXXXXX% of the paid-up amount of the shares expressed in Canadian dollars.

We confirm that the clarification of, and change to, the proposed transactions will not affect the rulings provided in the advance income tax ruling dated XXXXXXXXXX, 1999.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate

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