Principal Issues: Changes to ruling 2010-036725
Position: Ruling modified
Reasons: Change in facts does not affect validity of rulings given
XXXXXXXXXX 2011-040621
XXXXXXXXXX , 2011
Dear XXXXXXXXXX :
Re: XXXXXXXXXX
Supplemental Advance Income Tax Ruling Request
This is in reply to your letter (the "Letter") of XXXXXXXXXX , and is supplemental to our advance income tax ruling number 2010-036725 that was issued to the above-mentioned taxpayers on XXXXXXXXXX , 2011 (the "Ruling"). Unless otherwise defined, all capitalized terms in this letter have the meanings assigned to them in the Ruling.
In your Letter, you have advised that none of the Proposed Transactions have been commenced. This is due to insufficient time for OpCo and LossCo to conclude their negotiations and obtain the necessary board approval to proceed with the Proposed Transactions by XXXXXXXXXX . Also, you have advised that NewCo's first taxation year ended on XXXXXXXXXX . Further, you have confirmed that since the issue of the Ruling, no transactions have occurred or been implemented that could impact on the Proposed Transactions.
Consequently, you have requested the following amendments to the Ruling:
(a) Replace the sentence "NewCo will have a taxation year-end date of XXXXXXXXXX ", as described in Paragraph 19, with the sentence "Newco's first taxation year ended on XXXXXXXXXX ".
(b) Replace the phrase "On or before XXXXXXXXXX ", as described in Paragraphs 39 to 41 with "On or before XXXXXXXXXX ".
(c) Replace the phrase "will take place in XXXXXXXXXX ", as described in Paragraph 42, with "will take place on or before XXXXXXXXXX ".
Confirmation
Provided that the preceding statements and the statements contained in the Ruling constitute a complete and accurate disclosure of all the relevant facts, transactions, and purposes of the Subject Transactions and the Proposed Transactions, notwithstanding the amendments described herein and the preceding statements, we hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Ruling, the Ruling will continue to be binding on the CRA. In addition, we confirm that Paragraphs 19, 39, 40, 41, and 42 are hereby amended in the manner that you have requested above.
Yours truly,
XXXXXXXXXX
for Division Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch