The Canada Revenue Agency (the "CRA") recently issued Tax Ruling #2007-0224741R3 "Capital of a Municipal Corporation". The Ruling has particular significance in the context of municipal financing opportunities as it has expanded the scope of ownership rights that can be held by a third party without adversely affecting the tax-exempt status of a municipal corporation.

type Tax Law Bulletin - September 2008 - Tax Update on the Financing of Municipal Corporations