Principal Issues: Minor change in a proposed transaction.
Position: The proposed change does not affect any of the rulings given and/or the basis for giving such rulings.
Reasons: See above.
XXXXXXXXXX 2006-017244
XXXXXXXXXX, 2006
Dear XXXXXXXXXX:
Re: XXXXXXXXXX
Advance Income Tax Ruling 2005-014902
Pursuant to your letter of XXXXXXXXXX, you requested that a change be made to advance income tax ruling 2005-014902 that was issued in respect of the above named taxpayers on XXXXXXXXXX, 2005 (the "Original Ruling"). In particular, the Original Ruling contemplated the payment, in full, of Investco's capital dividend account ("CDA") as part of the Proposed Transactions. You indicate that Investco now proposes to pay a capital dividend that will be less than the full amount of its CDA. The reason for this change is to provide a cushion in the event that there is an error in the computation of Investco's CDA.
You confirm that none of the Proposed Transactions described in the Original Ruling have been undertaken and except as described below, none of the other facts and Proposed Transactions as described in the Original Ruling are affected.
In connection with your request, we confirm that the first sentence of Paragraph 10 in the Original Ruling commencing with the words "Investco will declare and pay cash dividends on its Investco Class B Shares, Investco Class D Shares and Investco Common Shares..." is replaced with "Investco will declare and pay cash dividends on its Investco Class B Shares, Investco Class D Shares and Investco Common Shares in an aggregate amount that will not exceed Investco's capital dividend account immediately before that time."
We confirm that the Original Ruling, as amended herein, remains binding on the Canada Revenue Agency and is subject to the same limitations and qualifications as described in the Original Ruling.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Planning Branch