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.
Principal Issues: Whether Canco's provision of the services described in paragraph 14 of the Ruling will result in Parent being considered to be carrying on business in Canada.
Position: No.
XXXXXXXXXX
2011-039226
XXXXXXXXXX
XXXXXXXXXX , 2011
Dear XXXXXXXXXX :
Re: Advance Income Tax Ruling
XXXXXXXXXX
This is in response to your XXXXXXXXXX request for amendments to advance income tax ruling 2010-038366 which was issued on XXXXXXXXXX , 2010 (the "Ruling").
The Ruling is amended as follows:
1. Delete paragraph 11 of the Ruling and replace it with:
Subsequent to the ratification of the Services Agreement, Parent will not sign or negotiate any contracts in Canada, will not engage in any profit-producing activity in Canada, will not solicit or offer anything for sale in Canada, will not have an agent who has the authority to conclude contracts on its behalf present in Canada and will not use the offices of Canco to conduct any business in Canada.
2. Delete paragraph 12 of the Ruling and replace it with:
Canco will continue to earn its own profits, will not offer anything of Parent's for sale in Canada and, other than for the receipt and payment of funds, will not act as an agent of Parent.
Subject to the limitations and qualifications referred to therein, and notwithstanding the amendments to paragraphs 11 and 12 described above, the Ruling will continue to be binding on the Canada Revenue Agency provided that Parent and Canco have entered into the Services Agreement before XXXXXXXXXX .
Yours truly,
for Director
International & Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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