Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 991772
Attention: XXXXXXXXXX
XXXXXXXXXX, 1999
Dear Sirs:
Re: Advance Income Tax Ruling for XXXXXXXXXX
(collectively, Fund 1 through Fund XXXXXXXXXX, inclusive, will be referred to as the "Funds", and individually may be referred to as a "Fund")
This is in reply to your letter of XXXXXXXXXX in which you requested on behalf of the Funds certain minor revisions to be made to the advance income tax ruling 990263 issued on XXXXXXXXXX, 1999 (the "Ruling Letter"). We acknowledge our related telephone conversations (XXXXXXXXXX).
The following changes are hereby made to the Ruling Letter:
1. The word "is" is deleted from (c) and (d) on page 2.
2. The words "in respect of the Funds" are inserted at the end of (e) on page 2.
3. The words "Fund 1" located in the definition of "Manager" and "Trustee" on page 2 are deleted and replaced by the words "each Fund".
Accordingly, page 2 of the Ruling Letter now appears as in the attached page.
These changes will not affect the rulings provided in our Ruling Letter.
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
Attach.
(a)
(c) under objection by XXXXXXXXXX or a related person;
(d) before the courts or, if a judgement has been issued, the time limit for appeal to a higher court has not expired; or
(e) the subject of a ruling previously issued by the Directorate in respect of the Funds.
As Fund 1 and Fund XXXXXXXXXX were recently established and the remaining Funds are not yet established, the Funds do not yet have a business number and, except for Fund 1, have not yet filed income tax returns. The Funds will file their tax returns at the XXXXXXXXXX Taxation Centre of Revenue Canada.
Definitions
"Act" = Income Tax Act (Canada)
"Draft Trust Agreement" = the draft trust agreement which was enclosed with your request for an advance income tax ruling
"Established Funds" = Fund 1 and Fund XXXXXXXXXX
"Manager" = XXXXXXXXXX, the manager of each Fund
"Proposed Funds" = Fund XXXXXXXXXX through Fund XXXXXXXXXX, inclusive, Fund XXXXXXXXXX and Fund XXXXXXXXXX
"Trustee" = XXXXXXXXXX, the trustee of each Fund
Facts
1. The Trustee is a taxable Canadian corporation within the meaning of the Act and is a trust company licensed to carry on the business of providing trust services in Canada. This business includes, among other things, acting as trustee of XXXXXXXXXX trusts established under the laws of Canada or a province thereof for the benefit of unitholders of such trusts.
2. The Manager is a taxable Canadian corporation within the meaning of the Act and carries on the business in Canada of providing investment management services to arm's length institutional clients such as registered pension plans and Canadian mutual funds as well as managing and promoting its own investment vehicles such as XXXXXXXXXX funds.
3. Fund 1 was established under the laws of the Province of Ontario on XXXXXXXXXX. The Manager is primarily responsible for the investment of Fund 1's assets. The Trustee and the Manager agreed to enter into a trust agreement substantially in the form of the Draft Trust Agreement. Fund XXXXXXXXXX was recently established under the laws of the Province of Ontario pursuant to a trust agreement substantially in the form of the Draft Trust Agreement.
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