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: Supplemental Ruling Request to 2006-020646 dated XXXXXXXXXX , 2007. Request made to revise the wording of paragraph 17 of the original ruling reply for clarity.
Position: No effect on original rulings as issued.
XXXXXXXXXX 2007-025118
XXXXXXXXXX , 2007
Dear XXXXXXXXXX :
Re: Advance Income Tax Ruling
XXXXXXXXXX
This is in reply to our telephone conversation of XXXXXXXXXX and your subsequent letter of XXXXXXXXXX wherein you advised us of a typographical error in the third bullet of paragraph 17 described in the advance income tax ruling number 2006-020646 dated XXXXXXXXXX , 2007 (the "Ruling"). As a result, paragraph 17 of the Ruling should read as follows:
17. Redemptions under the Plan will be restricted and subject to the approval of the Trustee. The terms and conditions pertaining to the redemption of a Participant's Notional Units are as follows:
- A Participant may terminate his or her participation in the Plan and request redemption of all, but not less than all, of his or her Notional Units in the event of financial hardship, on retirement or as otherwise permitted by the Trustee (as described in 18 below), at a fixed redemption price of $XXXXXXXXXX per Notional Unit. The voluntary redemption will be requested by delivery of a redemption notice to the Trustee that will be subject to the approval and acceptance by the Trustee.
- If a Trust Termination Event occurs after a request for redemption has been made, the request for redemption will be revoked in respect of Notional Units for which the redemption price has not been paid.
- Mandatory redemption of all of a Participant's Notional Units and termination of participation in the Plan will occur upon death of a Participant, the cessation of the Participant's employment with the Employer (except as a result of retirement) or a Participant being legally adjudged incompetent or becoming bankrupt.
- If there is no Trust Termination Event in effect at the effective time of a mandatory redemption, the redemption price of the Notional Units on a mandatory redemption is $XXXXXXXXXX per Notional Unit. However, if a Trust Termination Event is in effect at the time a mandatory redemption becomes effective, the redeeming Participant may instead receive a pro rata share of the Trust assets to be distributed on termination.
We hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Ruling, and including the above correction to paragraph 17, the rulings given therein will continue to be binding on the Canada Revenue Agency.
Yours truly,
XXXXXXXXXX
for Director
Financial Sector and Exempt Entities Division
Income Tax Rulings Directorate
Policy and Planning Branch
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© Her Majesty the Queen in Right of Canada, 2007
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