2016 Ruling 2016-0680421R3 - Advance income tax ruling extension

By services, 19 September, 2017
Bundle date
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Advance income tax ruling extension
Language
English
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Citation name
2016-0680421R3
Severed letter type
Ruling
Author
XXXXXXXXXX
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Node
Drupal 7 entity ID
472558
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Published
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Main text

Principal Issues: Request for extension of XXXXXXXXXX to implement transactions in ruling 2013-050430.

Position: Granted

Reasons: The request for the time extension is reasonable.

XXXXXXXXXX					2016-068042

XXXXXXXXXX, 2016

Dear XXXXXXXXXX:

Re: Advance Income Tax Ruling
XXXXXXXXXX

This is in reply to your email of XXXXXXXXXX wherein you requested an extension of time to complete the proposed transactions described in advance income tax ruling 2013-050430 (the “Ruling”).

We understand that the facts described in the Ruling remain unchanged except for the following:

1. Paragraph 1 of the Ruling is revised to state that Parentco holds approximately XXXXXXXXXX% of the common shares in Lossco and approximately XXXXXXXXXX% of the votes attached to all issued and outstanding shares in the capital of Lossco, not XXXXXXXXXX%.

2. Paragraphs 10 and 11 of the Ruling are revised to change the allocations as follows:

10. Lossco operates through permanent establishments in the Provinces of XXXXXXXXXX. Lossco has an allocation factor of approximately XXXXXXXXXX% to the Province of XXXXXXXXXX, approximately XXXXXXXXXX% to the Province of XXXXXXXXXX and of approximately XXXXXXXXXX% to the Province of XXXXXXXXXX, based on the interprovincial allocation for Lossco’s XXXXXXXXXX taxation year.

11. Profitco operates through permanent establishments in XXXXXXXXXX. Profitco has, based on the interprovincial allocation for Profitco’s XXXXXXXXXX taxation year, approximately the following allocation factors:

XXXXXXXXXX

3. Paragraph 16 of the Ruling is revised to indicate that the interest rate on the Profitco Note is XXXXXXXXXX%, XXXXXXXXXX, not XXXXXXXXXX%.

4. Paragraph 19 of the Ruling is revised to indicate that the structure will be unwound no later than XXXXXXXXXX, rather than XXXXXXXXXX.

We confirm that the rulings given in the Ruling will continue to be binding on the Canada Revenue Agency subject to the same limitations and qualifications set out therein, provided that the proposed transactions are implemented on or before XXXXXXXXXX.

Yours truly,

XXXXXXXXXX
for Director
Partnerships and Corporate Financing Section
Reorganizations Division
Income Tax Rulings Directorate