2004 Ruling 2003-0053981R3 - XXXXXXXXXX -- summary under Paragraph 107.4(1)(a)

Proposed transactions

1. The Fund, which is an exchange-traded mutual fund trust, will for nominal consideration subscribe for one Trust Unit of a unit trust (the “Trust”) that was settled by a third party, and redeem the initial Trust Unit held by that third party for its cash subscription price.
2. The Fund will transfer all of the Partnership Units of a partnership to the Trust for one or more Trust Units. This transfer will occur in one day. The Fund will not make the election in s. 107.4(3)(a)(i) and the Trust will not make the election in s. 107.4(3)(c)(ii)(B). Following this transfer, the Fund will continue to directly own 100% of the Trust Units and will indirectly own 100% of the Partnership Units. The Partnership Units acquired by the Trust will not be used to fund a distribution by the Trust. The value of the beneficial ownership of each holder of a Fund Unit under the Fund in the Partnership Units at the commencement of the transfer this transfer will be the same as the value of such holder's beneficial ownership under the Fund and the Trust in the Partnership Units at the completion of the transfer.

Ruling

The transfer of the Partnership Units from the Fund to the Trust will be a "qualifying disposition" pursuant to s. 107.4(1).