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:
Whether the rulings provided in file 3-982624 remain valid in light of amendments requested by the taxpayer.
Position TAKEN: Yes.
Reasons FOR POSITION TAKEN:
The main difference with the previous information submitted is that the XXXXXXXXXX. (“Universityco”) will not be able to apply to operate in XXXXXXXXXX due to legislative differences between the provinces. The XXXXXXXXXX legislation does not appear to contemplate the use of a Canadian subsidiary by Universityco. It is therefore anticipated that any application to operate in XXXXXXXXXX will be made by the parent, Universityco and that the parent will operate a branch in XXXXXXXXXX instead of a Canadian subsidiary.
The previous rulings remain valid for the same reasons indicated in the previous Statement of Principal Issues.
XXXXXXXXXX
XXXXXXXXXX 1-982797
XXXXXXXXXX
XXXXXXXXXX, 1998
Dear XXXXXXXXXX:
Re: Advance Income Tax Ruling 3-982624
XXXXXXXXXX
This is in reply to your letter of XXXXXXXXXX, wherein you requested amendments to advance income tax ruling number 3-982624 dated XXXXXXXXXX, 1998 (the “Ruling Letter”). We also acknowledge the telephone conversation of XXXXXXXXXX.
As requested, paragraphs 8, 11, 15 and 19 of the Ruling Letter is hereby deleted and replaced by the following:
8. Universityco is exploring the possibility of making an application under the XXXXXXXXXX to operate in XXXXXXXXXX. It is currently understood that, unlike XXXXXXXXXX, Canco will not be able to apply to operate in XXXXXXXXXX erta due to legislative differences between the provinces. The XXXXXXXXXX legislation does not appear to contemplate the use of a Canadian subsidiary by Universityco. It is therefore anticipated that any application to operate in XXXXXXXXXX will be made by Universityco.
11. To date, Canco has not received any tuition or other fees. All tuition fees will be paid to Canco. Canco has received applications that will be held in sequence of their arrival to preserve the applicants’ priority in determining program availability. A $XXXXXXXXXX fee will eventually be charged to process the applications; however, this fee will not be charged nor will the applications be processed until such time as the advance income tax ruling is issued.
15. Canco had originally intended to open offices and campuses in each of XXXXXXXXXX. However, as it is currently understood that Canco will not be able to apply for the required approvals to operate in XXXXXXXXXX, Canco no longer anticipates having an XXXXXXXXXX office or campus. The same situation may ultimately prevail in XXXXXXXXXX. In summary, no office or campus will be opened in a particular province unless Canco has complied with the relevant provincial legislation.
19. Canco intends to take steps to become recognized for the purpose of administering loans under the Canada Student Loans Act and/or the Canada Student Financial Assistance Act as soon as it meets certain minimum operational requirements.
XXXXXXXXXX
Notwithstanding the above changes, we confirm that, subject to the conditions set out therein, the rulings given in the Rulings Letter, as hereby amended, will continue to be binding on Revenue Canada in accordance with the practice outlined in Information Circular 70-6R3, Advance Income Tax Rulings, dated December 30, 1996, provided that Canco commences teaching courses in Canada by XXXXXXXXXX.
Yours truly,
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
3
.../cont’d
.../cont’d
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