2017-0686051R3 Supplemental Ruling - Time Extension

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.

Principal Issues: Whether CRA will grant an extension of time for ATR 2015-057805.

Position: Yes.

Reasons: The extension of time will allow the taxpayer time to complete the proposed transactions, which were not undertaken due to unfavourable market conditions.


Section: -

XXXXXXXXXX                                                                                                                                  2017-068605



        Time Extension to Advance Income Tax Ruling 2015-057805

This is further to your submission of XXXXXXXXXX which requested an extension of time to implement the Proposed Transactions described in advance income tax ruling 2015-057805, issued on XXXXXXXXXX, 2015 (the “Original Ruling”).

You have stated that the facts in the Original Ruling remain unchanged, with the exception that as of XXXXXXXXXX there are approximately XXXXXXXXXX Units of the Fund issued and outstanding.

You have further stated that that there are no changes to the Proposed Transactions other than that it is proposed that further amendments be made to the Declaration of Trust. Accordingly, the following changes are made to the Proposed Transactions in the Original Ruling:

Paragraph 18(h) is replaced with the following:

(h) XXXXXXXXXX and XXXXXXXXXX will be amended:

(i)   to provide Preferred Unitholders with the right to receive notice of, and to attend, all meetings of Trust Interest Holders of the Fund at which one of the items on the agenda is a proposal (A) to terminate the existing management agreement, (B) to terminate the Fund, or (C) an amendment to the Declaration of Trust to permit the redemption or retraction of Units at the option of the Unitholders or the Trust, other than an amendment pursuant to subsection XXXXXXXXXX of the Declaration of Trust (each a “Significant Event Proposal”);

(ii)  to provide the Preferred Unitholders with the right to vote on the approval of any such Significant Event Proposal; and

(iii) to provide for the voting rights attached to the XXXXXXXXXX Preferred Units described in 20(g) below;

Paragraph 20(g) is replaced with the following:

(g) the holders of the XXXXXXXXXX Preferred Units will be entitled to receive notice of, attend and vote at any meetings of the Trust Interest Holders:

(i)   as required by applicable law or by the Declaration of Trust, having one vote for each XXXXXXXXXX Preferred Unit held and voting separately as a class with any other series of Preferred Units then outstanding if required under applicable law or by the Declaration of Trust; or

(ii)  if the Fund shall have failed to pay the whole amount of XXXXXXXXXX distributions on the XXXXXXXXXX Preferred Units, in which case, and only for so long thereafter as any distributions on the XXXXXXXXXX Preferred Units remain in arrears, the holders of the XXXXXXXXXX Preferred Units shall be entitled to receive notice of, and attend all meetings of Trust Interest Holders of the Fund (other than any meetings at which only holders of another specified class or series are entitled to vote) and will be entitled to one vote for each XXXXXXXXXX Preferred Unit held together with all other Trust Interest Holders of the Fund who are entitled to vote at such meetings in respect of any business conducted at such meetings.

We confirm that the rulings in the Original Ruling remain binding on the Canada Revenue Agency provided that the Proposed Transactions are completed within six months of the date of this letter.

This ruling is subject to the limitations and qualifications set out in the Original Ruling and in Information Circular 70-6R7 dated April 22, 2016.

Yours truly,


For Division Director
Financial Industries and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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© Her Majesty the Queen in Right of Canada, 2017

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