2003 Income Tax Severed Letter 2003-0020401 - Supplemental Ruling

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 CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Change in facts.

Position: Ok. Change accepted.

Reasons: Minor. No impact.

XXXXXXXXXX 2003-002040

XXXXXXXXXX, 2003

Dear XXXXXXXXXX:

Re: Advance Income Tax Ruling #2003-018128 dated XXXXXXXXXX, 2003 (the "Ruling")

This is in reply to your email request dated XXXXXXXXXX, wherein you advised that a change to Paragraph 12 of the Ruling is required to correct an error in a proposed transaction that is yet to be completed. Unless otherwise defined, all capitalized terms have the meanings assigned to them in the Ruling and all references to paragraph numbers are to those in the Ruling.

Paragraph 12 of the Ruling describes the terms and conditions of the Newco shares that are to be issued. You indicate that under XXXXXXXXXX law, XXXXXXXXXX cannot have an unlimited number of shares of a class of capital stock authorized. Consequently, you have requested that Paragraph 12 of the Ruling be amended to set the maximum number of authorized shares of each class of shares at XXXXXXXXXX. You also confirm that none of the Proposed Transactions described in the Ruling have been entered into.

We confirm that the second paragraph in Paragraph 12 of the Ruling is cancelled and replaced with the following:

The authorized share capital of Newco will consist of XXXXXXXXXX common shares without par value ("Newco Common Shares") and XXXXXXXXXX of each of two classes of redeemable and retractable preferred shares (respectively, the "Class A Shares", and "Class B Shares", and collectively, the "Newco Preferred Shares").

Notwithstanding the above, in accordance with the practice outlined in Information Circular 70-6R5, dated May 17, 2002, we confirm that subject to the conditions and time limit set out in the Ruling, the Ruling, as amended by the above, will continue to be binding on the Canada Customs and Revenue Agency ("CCRA") as described therein.

Yours truly,

for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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