2015-0585911R3 Supplemental Ruling

Principal Issues: Whether the Lossco being held in part indirectly by Parentco affects the independent source of income condition for the loss consolidation ruling.

Position: No.

Reasons: No affect on independent source of income.

Author: XXXXXXXXXX
Section: 20(1)(c)

XXXXXXXXXX
                                                     2015-058591

XXXXXXXXXX, 2015

Dear XXXXXXXXXX:

Re:   Advance Income Tax Ruling
        XXXXXXXXXX

We are writing in response to your letter of XXXXXXXXXX, which is in respect of our advance income tax ruling number 2015-056986 (the “Ruling”). 

You have advised us that the second sentence of paragraph 2 is to be revised to state:

“Lossco has been a direct and indirect wholly-owned subsidiary of Parentco since XXXXXXXXXX.”

We confirm that the Ruling, as amended herein, remains binding on the Canada Revenue Agency subject to the same limitations and qualifications set out in the Ruling.

Yours sincerely,

XXXXXXXXXX
for Director
Partnerships and Corporate Financing Section
International Division
Income Tax Rulings Directorate

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