Principal Issues: Supplemental ruling to 2007-0234421R3
Where units of a mutual fund trust (assuming that it otherwise meets the conditions in 132(6)) are to be issued to various trusts, will this be a lawful distribution to the public of shares or units, for purposes of subparagraph 4801(a)(ii) of the Income Tax Regulations?
Position: Yes.
Reasons: Same reasons as presented in original ruling 2007-0234421r3
XXXXXXXXXX 2008-029276
Attention: XXXXXXXXXX
XXXXXXXXXX , 2008
Dear XXXXXXXXXX :
Re: XXXXXXXXXX
This is in reply to the letter dated XXXXXXXXXX in which you requested clarification to the advance income tax ruling 2007-023442 issued on XXXXXXXXXX , 2008 (the "Original Ruling") on behalf of the above-noted taxpayer. Capitalized terms used in this letter have the meanings given to them in the Original Ruling.
The Original Ruling is amended as follows:
Section A of the Original Ruling is replaced by the following:
"When the units of the Trust are distributed (as proposed in paragraphs 11 and 12 of Ruling 2007-023442), the distribution will constitute a lawful distribution in a province to the public of units of the trust for purposes of subparagraph 4801(a)(ii) of the Regulations."
Considering the above, we hereby confirm that this supplemental ruling is subject to the same conditions, limitations, qualifications and comments set out in the Original Ruling.
XXXXXXXXXX
Section Manager
for Division Director
International & Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch