Principal Issues: Can a corporation on-loan to a limited partnership ?
Position: Yes
Reasons: Corporate structure in place. GP's business is the same as LP. Better security for the lenders
XXXXXXXXXX 2005-012724
XXXXXXXXXX, 2005
Dear XXXXXXXXXX:
Re: XXXXXXXXXX ("A Co") - XXXXXXXXXX
Advance Income Tax Ruling 2005-011401 (the "Ruling")
This is in reply to your letter of XXXXXXXXXX, and is supplemental to the Ruling.
Paragraph 18 of the Ruling is amended as follows:
The words "... the later of XXXXXXXXXX and..." are deleted from the second sentence.
Paragraph 19 of the Ruling is amended as follows:
The words "...no amount payable prior to maturity..." in the final sentence are deleted and substituted by "...not more than XXXXXXXXXX% of the principal in respect of such draw payable prior to maturity..."
We confirm that the Ruling remains binding on the Canada Revenue Agency subject to the same limitations and qualifications set out therein.
Yours truly,
XXXXXXXXXX
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Planning Branch