1999 Ruling 9909933 - 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.

Principal Issues: change in facts

Position: ok

Reasons: does not affect ruling

XXXXXXXXXX
XXXXXXXXXX 990993
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 and the supplemental thereto (our file 990432), dated XXXXXXXXXX, 1999.

You have advised that the wind-up of XXXXXXXXXX into XXXXXXXXXX, followed by the transfer of the foreign affiliates to XXXXXXXXXX Subco on the reduction of capital of XXXXXXXXXX as described in paragraphs 7 and 8 of the advance income tax ruling will not be done prior to the borrowing of the New Loan and related transactions as described in paragraphs 9 to 13 of the advance income tax ruling and modified by the supplemental.

The delay is due to negotiations involving another shareholder of one of the foreign affiliates. As a result the transaction described in paragraph 7 will be delayed and may be done by way of an amalgamation instead of a wind-up and the transaction described in paragraph 8 will be implemented at a subsequent time.

We confirm that the change in order of implementing the proposed transactions will not affect the rulings given in the advance income tax ruling dated XXXXXXXXXX, 1999, provided that the proposed transactions are completed by XXXXXXXXXX.

Yours truly,

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

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