2017-0706671R3 Limited partnership financing arrangement

Principal Issues: Ruling request involving the application of subsection 96(2.2) in the context of a tax shelter.

Position: No ruling issued.

Reasons: Policy is to not rule on such arrangements.

Author: XXXXXXXXXX
Section: 96(2.2), 237.1

 XXXXXXXXXX                                                                                             2017-070667

XXXXXXXXXX, 2017

Dear XXXXXXXXXX:

Re: Request for an Advance Income Tax Ruling
      XXXXXXXXXX (Business Number XXXXXXXXXX)

We are writing in reply to your letter dated XXXXXXXXXX (as revised XXXXXXXXXX), requesting an advance income tax ruling.

Further to our telephone conversation of XXXXXXXXXX, this will confirm that we will not be issuing an advance income tax ruling with respect to the limited partnership financing arrangement proposed in your request involving the application of the at-risk rules in the context of a tax shelter.  Following a review of the request and an examination of our general policy on the scope of the advance ruling program, we have concluded that the nature of the arrangement being proposed is such that the provision of a binding commitment by the Canada Revenue Agency with respect to the tax consequences of its implementation would not be appropriate. We note that in accordance with paragraph 19(i) of Information Circular IC 70-6R7, Advance Income Tax Rulings and Technical Interpretations, dated April 22, 2016, the Directorate will not issue a ruling in respect of issues and/or types of transactions in respect of which it has publicly announced that it will not issue a ruling.

Yours truly,

XXXXXXXXXX
Director
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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