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We understand that, to the best of your knowledge and that of the taxpayer, none of the issues involved in the ruling request is: (i) in an earlier return of the taxpayer or a related person, (ii) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayer or a related person, (iii) under objection by the taxpayer or a related person, (iv) before the courts or, (v) the subject of a ruling previously issued by the Directorate to the taxpayer or a related person other than as noted in 4, below; Unless otherwise stated, all references to a statute are to the Income Tax Act (Canada), R.S.C. 1985, c.1 (5th Supp.), as amended to the date of this letter, (the "Act"), and all terms and conditions used herein that are defined in the Act have the meaning given in such definition unless otherwise indicated. ... In connection with the wind-up of the Corporation's affairs, the Board of Directors will pass a resolution to terminate the Plan. ...

We also acknowledge the information provided during our various telephone conversations in connection with your request (XXXXXXXXXX). We understand that, to the best of your knowledge and that of the taxpayers involved, none of the issues involved in the Ruling request: (i) is in an earlier return of the taxpayer or a related person; (ii) is being considered by a tax services office or taxation center in connection with a previously filed tax return of the taxpayer or a related person; (iii) is under objection by the taxpayer or a related person; (iv) is before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired; or (v) is the subject of a Ruling previously issued by the Directorate to the taxpayer or a related person. ...

Principal Issues: Whether interest remains deductible after an amalgamation Position: Yes Reasons: Interest deductibility rules XXXXXXXXXX 2003-003299 XXXXXXXXXX, 2003 Dear XXXXXXXXXX: Re: Advance Income Tax Ruling: XXXXXXXXXX This is in reply to your letter of XXXXXXXXXX, and further to your electronic messages of XXXXXXXXXX requesting an advance income tax ruling on behalf of Amalco (and its predecessor corporations, D Co and RCo) in connection with the income tax treatment of the deductibility of interest on money borrowed to acquire the shares of RCo after the proposed amalgamation of D Co and RCo. To the best of your knowledge and that of the taxpayers involved in this ruling request, none of the issues contained herein is: (a) dealt with in an earlier income tax return of D Co, RCo, or a related person, (b) being considered by a Tax Services Office or Taxation Centre in connection with a previously filed income tax return of D Co, RCo, or a related person, (c) under objection by D Co, RCo, or a related person, (d) before the Courts or, if a judgement has been issued, the time limit for appeal to a higher Court has expired, or (e) the subject of an advance income tax ruling request previously issued by the Income Tax Rulings Directorate. ...

Furthermore, extenuating circumstances do not appear to exist that would create additional connection factors sufficient to merit an exemption. ... It also requires that the employer is an Indian band which has a reserve, or a tribal council representing one or more Indian bands which have reserves, or an Indian organization controlled by one or more such bands or tribal councils, if the organization is dedicated exclusively to the social, cultural, educational, or economic development of Indians who for the most part live on reserves, and that the duties of the employment are in connection with the employer's non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserve. ...

We understand that, to the best of your knowledge and that of the taxpayer on whose behalf this ruling is requested, none of the issues involved in this ruling request are: (a) in an earlier return of the taxpayer or a related person; (b) being considered by a tax services office or a tax centre in connection with a tax return previously filed by the taxpayer or a related person; (c) under objection by the taxpayer or a related person; (d) before the courts or, if a judgement has been issued in respect of the issues, the time limit for appeal to a higher court has expired; or (e) the subject of a ruling previously issued by this Directorate to the taxpayer or a related person. ... XXXXXXXXXX LP has beneficial ownership of all of the Properties and carries on the business of XXXXXXXXXX, and in connection with such business to own, operate and lease assets and property, to manage and make investments and to hold direct and indirect rights in companies or other entities involved in the same business. ...

The definition of "automobile" in subsection 248(1) of the Act (the "Definition") states that "automobile" means: (a) a motor vehicle that is designed or adapted primarily to carry individuals on highways and streets and that has a seating capacity for not more than the driver and 8 passengers, but does not include: (b) an ambulance, (b.1) a clearly marked emergency-response vehicle that is used in connection with or in the course of an individual's office or employment with a fire department or the police; (c) [certain taxis, buses and hearses] (d) [certain motor vehicles for sale or rental, or used in a funeral business] (e) a motor vehicle (i) of a type commonly called a van or pick-up truck, or a similar vehicle, that has a seating capacity for not more than the driver and two passengers and that, in the taxation year in which it is acquired or leased, is used primarily for the transportation of goods or equipment in the course of gaining or producing income, (ii) of a type commonly called a van or pick-up truck, or a similar vehicle, the use of which, in the taxation year in which it is acquired or leased, is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income, or (iii) [used at a special work site or a remote work location] Based on your letter, we are of the view that the ERVs are motor vehicles described in paragraph (a) of the Definition. ... Paragraph (b.1): Emergency Police and Fire Vehicles Although, the ERVs are clearly marked emergency-response vehicles, it is our understanding that they are not "used in connection with or in the course of an individual's office or employment with a fire department or the police". ...

Merely doing so for her own convenience will not be a sufficient connection. ... It also requires that the employer is an Indian band which has a reserve, or a tribal council representing one or more Indian bands which have reserves, or an Indian organization controlled by one or more such bands or tribal councils, if the organization is dedicated exclusively to the social, cultural, educational, or economic development of Indians who for the most part live on reserves, and that the duties of the employment are in connection with the employer's non-commercial activities carried on exclusively for the benefit of Indians who for the most part live on reserve. ...

We acknowledge our subsequent conversations, correspondence and emails as well as our meetings of XXXXXXXXXX To the best of your knowledge and that of the Representative, none of the issues involved in this ruling is: (i) in an earlier return of the Representative or a related person; (ii) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the Representative or a related person; (iii) under objection by the Representative or a related person; (iv) before the courts, or if a judgment has been issued, the time limit for appeal to a higher court has not expired; or (v) the subject of a ruling previously issued by the Income Tax Rulings Directorate. ... The Settlement Property will be contributed to the Trust by the Representative in order to minimize the risk of future creditors, if any, of the Representative claiming against or recovering from such property in connection with causes of action arising in the course of the day-to-day operations of the Representative. ...

In this regard, we acknowledge your written submissions of XXXXXXXXXX made in connection with your request and our numerous telephone conversations with respect thereto (XXXXXXXXXX). You have advised us that to the best of your knowledge, and that of the taxpayers involved, none of the issues contained herein is: (a) in an earlier return of the taxpayer or a related person; (b) being considered by a tax services office or taxation centre in connection with a previously filed tax return of the taxpayer or a related person; (c) under objection by the taxpayer or a related person; (d) the subject of a ruling previously issued by the Income Tax Rulings Directorate; or (e) before the Courts (other than as described herein). ...

You have described a situation where a "principal-business corporation" (as defined in subsection 66(15) of the Act) has raised money through the issue of "flow-through shares" (also as defined in subsection 66(15) of the Act) and has used this money to do wind power development work, including site selection, wind feasibility, hydro connection feasibility, environmental feasibility, geotechnical study and process engineering relating to several proposed wind farm projects. ... In addition, amounts that would otherwise be included in the capital cost of depreciable property, other than costs incurred: A) for a temporary access road to the project, B) for clearing land as required to complete the project, C) for process engineering for the project, or D) for a test wind turbine, or any amount that would otherwise be included in the capital cost of intangible property, other than costs incurred: E) for making a service connection to transmit electricity to a purchaser, F) for a right of access to the project site during the start-up phase, or G) as described in A) to C) above, will not generally qualify as CRCE. ...