Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Minor changes to proposed transactions
Position: Confirmed rulings granted in ruling 2001-010726
Reasons: The law
XXXXXXXXXX 2003-001961
XXXXXXXXXX, 2003
Dear XXXXXXXXXX:
Re: XXXXXXXXXX
Supplementary Advance Income Tax Ruling
This is in reply to your letter of XXXXXXXXXX and is supplemental to our advance income tax ruling number 2001-010726 dated XXXXXXXXXX, 2002 (the "Ruling"). Unless otherwise noted, all defined terms used below have the meanings ascribed to them in the Ruling.
You have advised that none of the proposed transactions described in the Ruling has been undertaken, except the incorporation of Subco and the subscription by Holdco1 for common shares of Subco, as described in paragraph 18 of the Ruling.
As a result of your request, the following changes are made to the Ruling:
1. Paragraph 19 is deleted and replaced with the following:
The parties will agree to amend the Shareholders' Agreement to add a provision which entitles the Employees to offer to sell some or all of their Common Shares to Subco or any other subsidiary controlled by Individual A to the extent that such Common Shares have been offered for sale pursuant to Section XXXXXXXXXX of the Shareholders' Agreement and have not been sold. Subco or the other offeree subsidiary, as the case may be, will have XXXXXXXXXX days to accept the offer, in which case the sale will occur on the same terms and subject to the same limitations as apply to Common Shares sold directly to Opco. In particular, the sale price for any such sale will be calculated in the same manner as the Total Price, as described in paragraph 14, above.
2. Paragraph 20 is deleted and replaced with the following:
From time to time, some or all of the Employees will offer to sell some or all of their Common Shares (the "Subject Common Shares") to Subco pursuant to the Shareholders' Agreement (as amended) and Subco may accept such offer.
3. In paragraph 21, the words "Upon receipt of each such notice" are deleted and replaced with the words "Where such offer is accepted".
Notwithstanding the above changes, we confirm that the rulings given in the Ruling will continue to be binding on the Canada Customs and Revenue Agency subject to the same limitations and qualifications set out therein, provided that the proposed transactions are completed on or before XXXXXXXXXX.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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