Principal Issues: Supplemental to Ruling 2004-006089 - change in facts and request for extension in deadline to complete proposed transactions.
Position: Extension granted. Change in facts not material to rulings given.
XXXXXXXXXX 2004-009756
XXXXXXXXXX, 2004
Dear XXXXXXXXXX:
Re: Supplemental Income Tax Ruling Request - XXXXXXXXXX
This is in reply to your facsimile letters of XXXXXXXXXX in which you requested certain amendments to advance income tax ruling 2004-006089 dated XXXXXXXXXX, 2004 (the "Ruling") concerning the above-noted taxpayer. As a result, the Ruling is amended as follows:
1. Paragraph (p) of the Definitions section is replaced as follows:
"Reference Fund" means Underlying Fund A, Underlying Fund B or Underlying Fund C as specified by the Investor.
2. Paragraph (q) of the Definitions section is replaced as follows:
"Underlying Fund A" means any of XXXXXXXXXX, each of which is a corporation incorporated in the XXXXXXXXXX.
3. New paragraph (s) is added to the Definitions section as follows:
"Underlying Fund C" means any of XXXXXXXXXX, each of which is a trust established in Canada.
4. Paragraph 4 is amended to read as follows:
"The corporations comprising Underlying Fund A and the trust comprising Underlying Fund B are neither resident in Canada for the purpose of the Act nor do they carry on business in Canada. The trusts comprising Underlying Fund C are resident in Canada for the purpose of the Act and the investment portfolio of Underlying Fund C is managed by an affiliate of the Bank. You advise that the Fund Shares are "foreign property" as defined in subsection 206(1)."
5. The third sentence in paragraph 9 is amended to read as follows:
"The purchase will be made outside Canada at the offices of the relevant Reference Fund except in the case of Underlying Fund C."
6. Ruling A is amended to read as follows:
"A Note acquired by an Investor will not constitute foreign property as defined in subsection 206(1)."
Notwithstanding the foregoing amendments, we hereby confirm that the rulings given in the Ruling, as amended herein, will continue to be binding on the CCRA, subject to the conditions set out therein and in accordance with the practice outlined in Information Circular 70-6R5, dated May 17, 2002, provided that the proposed Notes described in the Ruling are issued before XXXXXXXXXX.
Yours truly,
XXXXXXXXXX
Manager
Financial Institutions Section
Financial Industries Division
Income Tax Rulings Directorate
Policy and Planning Branch