2019-0792771R3 Supplemental Ruling

Principal Issues: Additional ruling in respect of our letter 2018-077896 requested regarding how subsection 107.4(2.1) will apply.

Position: Ruling 1.5.1 in the original ruling letter is revised to incorporate the request

Reasons: The law is clear.

Author: XXXXXXXXXX
Section: 107.4(2.1) and 107.4(2)(a)

XXXXXXXXXX                                                                                                                                                                2019-079277

XXXXXXXXXX, 2019

Dear XXXXXXXXXX:

Re:   XXXXXXXXXX
        Supplemental Advance Income Tax Ruling

We are writing in connection with our recent discussions (XXXXXXXXXX) in regard to our advance income tax ruling number 2018-077896, that was issued to the above-referenced taxpayer on XXXXXXXXXX (the “Original  Ruling”).

Capitalized terms used in this letter, but not defined herein, have the meanings given to them in the Original Ruling.

As requested, the Original Ruling is amended as follows:

Paragraph 1.5.1 of the Original Ruling is amended to read as follows:

1.5.1  Each transfer of the Transfer Percentage of a property by a Participating XXXXXXXXXX Public Fund to its corresponding New Fund, as described above in paragraph 1.3.7, will be a “qualifying disposition” within the meaning of subsection 107.4 (1).  In regard to the proposed transactions in paragraph 1.3.10 above, for the purpose of applying paragraph 107.4(2)(a), if all of the requirements in subsection 107.4(2.1) are met, that subsection will apply once in respect of each class of identical shares held by a particular Participating XXXXXXXXXX Public Fund.

We confirm that the rulings given in the Original Ruling, as modified by this letter, will continue to be binding on the Canada Revenue Agency subject to the same limitations and qualifications set out in the Original Ruling and in Information Circular 70-6R8 Advance Income Tax Rulings and Technical Interpretations, dated November 1, 2018.

An invoice for our fees in connection with this supplementary ruling request will be forwarded to you under separate cover.

Yours truly,

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

All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without the prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5.

© Her Majesty the Queen in Right of Canada, 2019

Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistribuer de l'information, sous quelque forme ou par quelque moyen que ce soit, de façon électronique, mécanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.

© Sa Majesté la Reine du Chef du Canada, 2019