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 992269
Attention: XXXXXXXXXX
XXXXXXXXXX, 1999
Dear Sirs:
Re: XXXXXXXXXX
This is in reply to your letter of August 19, 1999, wherein you advise of certain changes to the proposed transactions described in the advance income tax ruling issued on behalf of the above-noted taxpayer on XXXXXXXXXX, 1999 (our file 990082)(the "Ruling").
All capitalized terms have the meaning assigned in the Ruling.
You advise that the transaction described in paragraph 13 of the Ruling has been implemented. You also advise that the XXXXXXXXXX shares of Canco which had been owned by arm's length persons, as described in paragraph 9 of the Ruling, have now been redeemed with the result that Canco is now a subsidiary wholly-owned corporation of XXXXXXXXXX.
It is now proposed to vertically amalgamate XXXXXXXXXX and Canco (rather than wind Canco up into XXXXXXXXXX as described in paragraph 14 of the Ruling) in order to simplify the treatment of certain regulatory issues and to facilitate the combination of the business operations.
In connection with the amalgamation of XXXXXXXXXX and Canco, a designation will be made under the provisions of subsection 87(11), and paragraph 88(1)(d) to increase, within the limits described in paragraph 88(1)(d), the ACB of certain capital property of Canco owned immediately before the amalgamation. No property of Canco that becomes property of the amalgamated corporation, or any other property acquired in substitution therefor, will be acquired by a person or persons described in subclauses 88(1)(c)(vi)(B)(I), (II) or (III).
We confirm that, provided that the provisions of subsection 87(11) are met, the ruling contained in paragraph (B) of the Ruling will continue to be binding, mutatis mutandis.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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