Principal Issues: minor changes to Ruling 2007-025540
Position: does not affect Ruling provided
Reasons: minor
2008-026575 XXXXXXXXXX
XXXXXXXXXX , 2008
Dear XXXXXXXXXX :
Re: Advance Income Tax Ruling
XXXXXXXXXX . ("Parentco")
XXXXXXXXXX . ("NR Subco")
XXXXXXXXXX . ("Opco") BNXXXXXXXXXX
XXXXXXXXXX . ("Holdco") BNXXXXXXXXXX
XXXXXXXXXX ("XXXXXXXXXX Co") BNXXXXXXXXXX
This is in reply to your correspondence of XXXXXXXXXX wherein you request the following amendments to our advance income tax ruling number 2007-025540 (the "Ruling"), issued on XXXXXXXXXX, 2008 on behalf of the above-named taxpayers. Capitalized terms not defined herein are as defined in the Ruling.
As requested, the Ruling is amended as follows:
1. The words "...except to the extent covered by the Previous Ruling..." are added after the words "...or a related person..." and before "...nor..." in paragraph (iv) of the first page.
2. The word "have" after the words "...XXXXXXXXXX Co and Parentco..." and before "...agreed to pay..." is deleted in paragraph (t) "Notional Principal Payments" of the Definitions.
3. The words "...and which payments are now to be made between XXXXXXXXXX Co and NRSubco, on the basis described in 18 below;" are added at the end of paragraph (t) "Notional Principal Payments" of the Definitions.
4. The words "...and which payments are now to be made between XXXXXXXXXX Co and NRSubco as the basis described in 18 below;" are added at the end of paragraph (pp) "Periodic Payments" of the Definitions.
5. The words "...as now exist between NRSubco and XXXXXXXXXX Co," are added after the words "...from time to time..." and before the words "...pursuant to which..." on line 4 of paragraph (ccc) "Swap Arrangement" of the Definitions.
6. Paragraph 10(d) is amended to delete the word "could" and replace it by the word "can" after the word "...agreement..." and before the words "...be transferred...".
7. Paragraph 14 is amended by adding the words "...and, after January 1, 2008, is exempt from Canadian withholding tax pursuant to recent amendments to eliminate withholding tax on interest paid to arm's length non-residents" at the end of the paragraph.
8. Paragraph 18 is amended by adding the words "...and did not have any positive value..." after the words "...Swap Arrangement is "under water"..." and before the words "...and thus XXXXXXXXXX Co..." on line 9.
9. Paragraph 24 is amended by deleting the word "...equals..." and replacing it with the words "...is less than..." in line 20 and line 22 before "...US$..." and before "...CDN$...".
We confirm that the Ruling, as amended herein, remains binding on the Canada Revenue Agency subject to the same limitations and qualifications set out in the Ruling.
Yours truly,
XXXXXXXXXX
for Director
Financial Sector and Exempt Entities Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch