CCF
A Common Contractual Fund ("CCF") is a type of collective investment undertaking under which Unitholders by contractual arrangement acquire, own and share in the property of the CCF as co-owners, being entitled to an undivided interest as tenants in common in the property comprising the CCF. Accordingly, Unitholders are owners of, and are entitled to all income and gains derived from, the property of the CCF as such income and gains arise. It is legally valid for a CCF to have only one unit-holder.
Proposed transactions
The Manager, which is a corporation resident in Ireland, will constitute the "Fund" in accordance with a Deed of Constitution, so that it will qualify as a "CCF" described in s. 739I(1)(a)(ii) of the Taxes Consolidation Act 1997 (Ireland) (the "TCA"). This requires that: (i) it is an Undertaking for Collective Investment in Transferable Securities ("UCITS") authorized by the European Communities UCITS Regulations (the "Regulations"), (ii) it is constituted otherwise than under trust law or statute law, (iii) each of its units is beneficially owned by a pension fund or by a person other than an individual, or is held by a custodian or trustee for the benefit of a person other than an individual, and (iv) all the investors in the investment undertaking make a declaration on acquiring units in the undertaking. On this basis, the Fund will not be chargeable to Irish tax on its profits. The Fund will be an "umbrella fund" within the meaning of the Regulations. Accordingly the Fund will consist of several Sub-Funds and Units shall be issued in respect of each Sub-Fund. Each Unit will represent a proportionate undivided co-ownership interest in the property of the Sub-Fund. The Irish Custodian has safekeeping responsibilities, and the Canadian Sub-custodian has Canadian tax reporting responsibilities respecting Canadian source receipts.. The Manager will be responsible for managing the Fund's property in accordance with the Prospectus, Deed of Constitution, Regulations and any other regulatory requirements.
Rulings include
:
For the purposes of Part I…, each Unitholder will directly earn its proportionate share of income, losses, capital gains and capital losses from the property of the relevant Sub-Fund of which it is a Unitholder.
For the purposes of Part XIII…, any amount paid or credited by a Canadian payer to the Sub-custodian in respect of the property of a particular Sub-Fund will be an amount paid or credited to each Unitholder of the relevant Sub-Fund in proportion to the Unitholder's ownership of the property of the relevant Sub-Fund.
[T]he Dutch Treaty will apply to each Unitholder that is a resident of the Netherlands for the purposes of the Dutch Treaty for the purposes of determining the withholding rates in respect of the Canadian source income it earns from its share of the property of the relevant Sub-Fund.