2017-0704351R3 Paragraph 55(3)(a) - Supplemental Ruling

Principal Issues: Did the change in facts affect rulings provided in 2016-067588?

Position: No

Reasons: Change in facts relate solely to legal title holder of property. Beneficial owners of property unchanged.

Author: XXXXXXXXXX
Section: 55(1), 55(2), 55(3)(a), 55(3.01), 55(5)(e), 85(1), 112, 251(2)

XXXXXXXXXX                                                                                                            2017-070435

XXXXXXXXXX, 2017

Dear XXXXXXXXXX:

Re: XXXXXXXXXX
      Advance Income Tax Ruling – Supplement to 2016-067588

We are writing in response to your letter of XXXXXXXXXX wherein you advised us of certain changes to the facts in Advance Income Tax Ruling 2016-067588 (the “AITR”).

Unless otherwise indicated, capitalized terms referred to herein have the same meaning as provided in the AITR.

Based on your letter, the ATIR is hereby amended as follows:

1. Paragraph 5 of ATIR is removed and replaced with the following:

Canco’s main asset consists of four apartment rental buildings, being Building 1, Building 2, Building 3 and Building 4. Legal title to Building 1 and Building 2 is held by Holdco 1 as nominee and bare trustee for Canco, while legal and beneficial title to Building 3 and Building 4 is held directly by Canco. Each building is held by Canco as capital property.

2. Paragraph 39 of the ATIR is removed and replaced with the following:

References to a transfer of property described in the Proposed Transactions are references to a transfer of beneficial ownership. Except for Building 1 and Building 2, it is intended that legal title to the properties that will be owned by Newco 1 and Newco 2 will continue to be held by Canco as nominee and bare trustee for Newco 1 and Newco 2. It is also intended that legal title to Building 1 and Building 2 will continue to be held by Holdco 1 as nominee and bare trustee for Newco 1 and Newco 2.

We hereby confirm that the amended facts set out above do not affect the rulings given in the AITR and that they will continue to be binding on the Canada Revenue Agency, subject to the conditions and limitations stated in the AITR.

Yours very truly,

XXXXXXXXXX
Section Manager
for Director
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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