7 July 2007 Income Tax Severed Letter 2007-0255061R3 - 2e Supplemental ruling 2007-022609 and 2007-024291

By services, 23 November, 2017
Official title
2e Supplemental ruling 2007-022609 and 2007-024291
Language
English
CRA tags
85.1(3), 95(1), 250(6);
Document number
Citation name
2007-0255061R3
Severed letter type
Miscellaneous
Author
XXXXXX
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
485382
Extra import data
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"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "2007-07-07 08:00:00",
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Workflow properties
Workflow state
Published
Workflow changed
Main text

SUMMARY: 2e Supplemental ruling 2007-022609 and 2007-024291—ITA-85.1(3), 95(1), 250(6)—Advance income tax ruling—Changes to the facts and proposed transactions in advance income tax rulingand supplemental ruling, both issued in 2007.

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.

PRINCIPAL ISSUES: Changes to the facts and the proposed transactions described in the advance income tax ruling no. 2007-022609 [] and in the supplemental ruling 2007-024291 [].

POSITION: Confirmation that, subject to the conditions, limitations, qualifications and comments set out therein, the original ruling given in 2007-022609 [], as amended by the supplemental ruling 2007-024291 [], will continue to be binding on the CRA

XXXXXXXXXX 2007-025506

XXXXXXXXXX, 2007

Dear Sir:

Re: Supplemental Advance Income Tax Ruling

XXXXXXXXXX

(XXXXXXXXXX Tax Services Office, XXXXXXXXXX Taxation Centre)

This is in reply to your letter of XXXXXXXXXX in which you requested confirmation that certain changes to the advance income tax ruling we issued on XXXXXXXXXX, 2007 to XXXXXXXXXX (our file No. E2007-022609 [], hereinafter referred to as the “Ruling”), as amended by the Supplemental advance income tax ruling we issued on XXXXXXXXXX. 2007 (our file No. E2007-024291 [], hereinafter referred to as the “First Supplemental Ruling”), would not affect the rulings and the opinion given therein, as amended by the Supplemental advance income tax ruling.

    As a result of your letter, the following changes to the Ruling are made.
  • 1. Paragraph 1 of the Ruling is changed to read as follows:

    Opco is a Canadian controlled private corporation within the meaning of the Act. Opco is located at XXXXXXXXXX.

  • 2. Paragraph 2 of the Ruling is changed to read as follows:
      The shareholders of Opco and their shareholdings are as follows:
    • a) Holdco H holds XXXXXXXXXX Class “A”, XXXXXXXXXX Class “B”, XXXXXXXXXX Class “E” and XXXXXXXXXX Class “G” shares; the sole shareholder of Holdco H is XXXXXXXXXX;
    • b) Holdco L holds XXXXXXXXXX Class “A” and XXXXXXXXXX Class “E” shares; the sole shareholder of Holdco L is XXXXXXXXXX;
    • c) Holdco J holds XXXXXXXXXX Class “A”, XXXXXXXXXX Class “B”, XXXXXXXXXX Class “E” and XXXXXXXXXX Class “G” shares; the sole shareholder of Holdco J is XXXXXXXXXX;
    • d) Holdco A holds XXXXXXXXXX Class “A” shares; the sole shareholder of Holdco A is XXXXXXXXXX.
    • (Holdco A, Holdco H, Holdco J and Holdco L are hereinafter collectively referred to as the “Canadian Holdcos”);
  • 3. Paragraph 3 of the Ruling is changed to read as follows:

    The Class “A” and Class “B” shares are common shares and the Class “E” and Class “G” shares are preferred shares with a fixed value. The Class “A”, Class “E” and Class “G” shares are voting while the Class “B” shares are non-voting.

  • 4. The last part of paragraph 7 of the Ruling is changed as follows:

    XXXXXXXXXX

  • 5. Paragraph 12b) of the Ruling is changed to delete the reference to “Sub2” and to “Sub4”.
  • 6. Paragraph 16 of the Ruling is changed to read as follows:
      Each of the XXXXXXXXXX Family Holdcos will subscribe for a separate class of common shares in each of XXXXXXXXXX Holdco #1 and XXXXXXXXXX Holdco #2 as follows:
    • (a) H XXXXXXXXXX Family Holdco: XXXXXXXXXX Class “A” common shares;
    • (b) L XXXXXXXXXX Family Holdco: XXXXXXXXXX Class “B” common shares;
    • (c) J XXXXXXXXXX Family Holdco: XXXXXXXXXX Class “C” common shares; and
    • (d) A XXXXXXXXXX Family Holdco: XXXXXXXXXX Class “D” common shares.

You advised us that, apart from the amendments to the Facts and Proposed Transactions described above, there are no other changes to the Facts and Proposed Transactions described in the Ruling and in the First Supplemental Ruling. You advised us that the Facts, Proposed Transactions and Purpose of the Proposed Transactions described in the Ruling, as amended by the First Supplemental Ruling and by this letter, will constitute a complete and accurate disclosure of all relevant facts and transactions.

Considering the above, we hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Ruling, as amended by the First Supplemental Ruling and by this letter, rulings A, B and C, as amended by the First Supplemental Ruling, will continue to be binding on the Canada Revenue Agency.

The Opinion included in the Ruling issued on XXXXXXXXXX, 2007 should be read as amended by the First Supplemental Ruling.

The rulings given in the Ruling, as amended by the First Supplemental Ruling, are binding on the Canada Revenue Agency provided that the Proposed Transactions are completed before XXXXXXXXXX.

Yours truly,

XXXXXXXXXX

for the Director

International and Trusts Division

Income Tax Rulings Directorate

Legislative Policy and Regulatory Affairs Branch