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.
Principal Issues:
Whether Old Ruling still binding if Directors elect before the Corporation’s annual meeting instead of before December 31 each year?
Position:
Yes.
Reasons:
All requirements in 6801(d) are met.
XXXXXXXXXX
XXXXXXXXXX 990056
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1999
Dear Sirs:
Re: Advance Tax Ruling (document #982947)
XXXXXXXXXX (the "Corporation") - XXXXXXXXXX
Deferred Share Unit Program (the “Plan”)
This is in reply to your letter of XXXXXXXXXX, in which you seek an amendment to the above advance tax ruling dated XXXXXXXXXX, 1998 the “ruling letter”).
We understand that the proposed transactions have not been completed and accordingly, we confirm that the ruling letter is hereby amended as follows:
Paragraph 3 (b) of the ruling letter is revised to read as follows:
(b) Each year, prior to the annual meeting of the Corporation, Directors will be permitted to elect, in writing, to receive a percentage (XXXXXXXXXX of their Annual Retainer Compensation for the next calendar year in Deferred Share Units (hereinafter referred to as the “Elected Amount”) and the balance either in cash, Shares or stock options.
We confirm that the rulings given in the ruling letter will continue to be binding in the manner set forth therein, provided that the features of the Proposed Plan remain as described in the Old Ruling, as amended by this letter, and provided the Proposed Plan is implemented within six (6) months of this letter.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings
and Interpretations Directorate
Policy and Legislation Branch
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