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.
SUMMARY: Supplementary to ruling 2008-029214—none—Advance income tax ruling—Amendments to advance income tax rulingrelating to a time extension and foreign resource property.
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: time extension to ruling # 2008-029214 [] on Foreign resource property
XXXXXXXXXX 2010-037109
XXXXXXXXXX, 2010
Dear. XXXXXXXXXX:
Re: XXXXXXXXXX (the “Corporation”)
Advance Income Tax Ruling dated XXXXXXXXXX, 2009 (the “Ruling”)
This is in reply to your request for an extension of the deadline for commencement of the proposed transactions referred to in the Ruling (our file number 2008-029214 [] and XXXXXXXXXX as stated in paragraph 17 of the Ruling. Due to XXXXXXXXXX may take more time to complete than anticipated and the proposed transactions cannot proceed until such documentation is in place. Therefore an extension to the time period covered by the Ruling is required. As a result of this development, the following amendments are made to the Ruling:
- i) Paragraph 17 is replaced by the following like-numbered paragraph
17. XXXXXXXXXX has confirmed XXXXXXXXXX that:
- a) the withholding tax on the NSR payments will be 10% of the gross amount thereof; and
- b) the withholding tax on the cash portion of the exchange proceeds will be 10%.
You have also recently advised that the Net Smelter Return rate stated in paragraph 14 of the Ruling should be reduced from XXXXXXXXXX% to XXXXXXXXXX%.
Notwithstanding the above amendments, the Ruling will continue to be binding on the Canada Revenue Agency subject to the limitations and qualifications set out therein, except that the date for commencement of the proposed transactions is hereby changed from XXXXXXXXXX to XXXXXXXXXX.
Yours truly,
Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Legislation Policy Regulatory and Affairs Branch
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© Her Majesty the Queen in Right of Canada, 2010
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