Principal Issues: Correction of facts and proposed transactions.
Position: Changes made and accepted.
Reasons: The changes do not affect any of the rulings given.
XXXXXXXXXX 2005-014300
XXXXXXXXXX, 2005
Re: XXXXXXXXXX ("Lossco")
XXXXXXXXXX ("Profitco")
XXXXXXXXXX ("Cco")
Request for Supplementary Advance Income Tax Ruling______
Further to your email letter of XXXXXXXXXX, the following amendments are made to advance income tax ruling 2004-010948 that was issued to the above-noted taxpayers on XXXXXXXXXX, 2005 (the "Ruling").
Changes to Facts
The last sentence in paragraph 3 of the Ruling is deleted and replaced by the following:
Prior to the proposed transactions, Cco's only liability will be a $XXXXXXXXXX non-interest-bearing loan payable to Lossco and its only asset will be an investment in XXXXXXXXXX Dco Common Shares.
Changes to Proposed Transactions
Subparagraph (c) of paragraph 13 of the Ruling is deleted and replaced by the following:
(c) Cco Common Shares with a fair market value equal to the difference between the fair market value of the Dco Common Shares transferred to Cco and the fair market value of the consideration described in subparagraphs (a) and (b) of this paragraph.
We confirm that the Ruling, as amended herein, remains binding on the Canada Revenue Agency subject to the same limitations and qualifications as set out in the Ruling.
Yours truly,
for Division Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Planning Branch