| August 15, 1989 | |
| Legislative Affairs | Specialty Rulings |
| Directorate | Directorate |
| S. Shinerock | |
| Roy C. Shultis | 957-2108 |
| Director | |
| Publications Division | File No. 7-4136 |
Subject: Publications of Advance Tax Ruling 3-2141 ("ATR-2141")
We refer to your memorandum of July 17, 1989 in which you requested us to review the edited version of 2141 as being suitable for publication. We have reviewed the edited version and would like to make the following suggestions for amendments thereto. All references are to the numbered paragraphs as they appear in the edited version.
Facts
Paragraph 1
The use of the words "following which a predecessor corporation (Oldco) was wound up into Opco." is technically incorrect and is not germane to 2141. We suggest that they should be deleted.
21(1)(a)
Paragraph 2 and 3
The same comments as made with respect to paragraph 1 apply also to paragraphs 2 and 3.
Paragraph 5
(i) We suggest that the first sentence be deleted and replaced with:
Opco derives its income from a small manufacturing business.
(ii) We suggest that you delete the sentence "The Building is Opco's only asset of Class 3 of Schedule II to the Income Tax Regulations".
It is not an important fact, and is specific only to the circumstances of the taxpayer corporation.
(iii) It would appear that the word "building" in line 9 should be "Building".
Paragraph 6
(i) We suggest that the words "distributor of electrical appliances" be changed to "distributor of certain products".
(ii) The last word contains a typo.
Proposed Transactions
Paragraph 2
21(1)(a)
Paragraph 5
The words "agreed amount" in the last subparagraph should be capitalized.
E. Other Comments
The "other comments" following the rulings could confuse the reader. Since they were given relative to a specific situation, we feel that they are inappropriate to a "generic" ruling, and should therefore be deleted.
Other than the above noted comments, we believe that 2141 is suitable for publication.
We are enclosing your copy of 2141 and the proposed published version thereof. We also enclose a copy of a supplemental to ATR- 2141, which should perhaps be incorporated between paragraphs 3 and 4 of Part B of 2141.
Director Reorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch