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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 3-963956
XXXXXXXXXX
Attention XXXXXXXXXX
XXXXXXXXXX, 1996
Dear Sirs:
Re: XXXXXXXXXX
advance income tax ruling 3-962947
dated XXXXXXXXXX, 1996 (the "Ruling)
We are writing in response to your letters of XXXXXXXXXX in which you advised us that certain employees of XXXXXXXXXX and its subsidiaries (other than the former principal shareholders of XXXXXXXXXX in the U.K.) will be allowed to acquire shares of XXXXXXXXXX pursuant to an employee share purchase plan approved by the board of directors ofXXXXXXXXXX (the "Plan"). (Terms defined in the Ruling to have a certain meaning have the same meaning when used in this letter.)
The Plan provides for the issuance of XXXXXXXXXX common shares of XXXXXXXXXX to employees other than employees of XXXXXXXXXX and an additional XXXXXXXXXX common shares to employees of XXXXXXXXXX. The XXXXXXXXXX shares will be issued for the price of $XXXXXXXXXX per share and the XXXXXXXXXX shares will be issued to the employees of XXXXXXXXXX for nominal consideration. These shares will be issued after the completion of the proposed transactions described in the Ruling, but prior to the filing of articles of amendment deleting the private company restrictions from the articles of incorporation of XXXXXXXXXX. No employee subscribing for shares of XXXXXXXXXX pursuant to the Plan is or will be a specified shareholder of XXXXXXXXXX.
We confirm that the execution of the employee share purchase plan and the issuance of XXXXXXXXXX shares to its employees or employees of its subsidiaries pursuant to the Plan, in and by itself, will not affect the rulings given in the Ruling which will continue to be binding as indicated therein.
Yours truly,
for Director
Reorganization and International Division
Income Tax Rulings and Interpretations
Directorate
Policy and Legislation Branch
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