2016-0680411R3 Advance income tax ruling extension

Principal Issues: Request for extension of XXXXXXXXXX to implement transactions in ruling 2014-055678.

Position: Granted

Reasons: The request for the time extension is reasonable.

Author: XXXXXXXXXX
Section: -

XXXXXXXXXX                                                                                                                       2016-068041

XXXXXXXXXX, 2016

Dear XXXXXXXXXX:

Re: Advance Income Tax Ruling
       XXXXXXXXXX
       XXXXXXXXXX
       XXXXXXXXXX

This is in reply to your email of XXXXXXXXXX wherein you requested an extension of time to complete the proposed transactions described in advance income tax ruling 2014-055678 (the “Ruling”).

We understand that the facts described in the Ruling remain unchanged except for the following:

1. Paragraph 2 of the Ruling states that “Bco is a taxable Canadian corporation and XXXXXXXXXX and which is controlled by Lossco, which owns directly or indirectly, approximately XXXXXXXXXX% of the issued and outstanding common shares of Bco.”  Paragraph 2 of the Ruling is revised to state that Lossco owns directly and indirectly approximately XXXXXXXXXX%, not XXXXXXXXXX%, of the issued and outstanding common shares of Bco.

2. Paragraphs 10 and 11 of the Ruling are revised to change the allocations as follows:

10. Lossco operates through permanent establishments in the Provinces of XXXXXXXXXX.  Lossco has an allocation factor of approximately XXXXXXXXXX% to the Province of XXXXXXXXXX, approximately XXXXXXXXXX% to the Province of XXXXXXXXXX and of approximately XXXXXXXXXX% to the Province of XXXXXXXXXX, based on the interprovincial allocation for Lossco’s XXXXXXXXXX taxation year.

11. Profitco operates through permanent establishments in XXXXXXXXXX.  Profitco has, based on the interprovincial allocation for Profitco’s XXXXXXXXXX taxation year, approximately the following allocation factors:

XXXXXXXXXX

3. Paragraph 22 of the Ruling is revised to indicate that the structure will be unwound no later than XXXXXXXXXX, rather than XXXXXXXXXX.

We confirm that the rulings given in the Ruling will continue to be binding on the Canada Revenue Agency subject to the same limitations and qualifications set out therein, provided that the proposed transactions are implemented on or before XXXXXXXXXX.

Yours truly,

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

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