Current structure
The Fund, which is an exchange-listed mutual fund trust, holds shares and debt (the Corporation Shares and the Corporation Notes) of an operating subsidiary, and holds a general partnership interest through a sub trust (the trust).
Proposed transactions
The Fund will transfer the Corporation Shares and the Corporation Notes to the Trust for no consideration. This transfer will take place in one day. It will not make a s. 107.4(3)(a)(i) election and the Trust will not make a s. 107.4(3)(c)(ii)(B) election. There will be no transfer of property to the Trust as consideration for the acquisition of a capital interest in the Trust where the particular property can reasonably be considered to have been received by the Trust in order to fund a distribution. The value of each beneficiary's beneficial ownership under the Fund in the Corporation Shares and Corporation Notes at the commencement of this transfer will be the same as the value the beneficiary's beneficial ownership under the Fund and the Trust in the Corporation Shares and Corporation Notes at the completion of the transfer.
Ruling
S. 107.4(2)(a) will apply so that for purposes of s. 107.4(1)(a), and the transfer will not result in any change in beneficial ownership of the transferred Corporation Shares and the Corporation Notes.