Search - consideration

-- summary under Subsection 256(1.1) Summary Under Tax Topics- Income Tax Act- Section 256- Subsection 256(1.1) Where a share has been issued as a stock dividend, the consideration for which the share was issued would be considered to be nil. ...

12 November 2003 External T.I. 2002-0121835- 85(1)- Holdbacks Payable-- summary under Subsection 85(1) Summary Under Tax Topics- Income Tax Act- Section 85- Subsection 85(1) On a sale by a contractor of its construction contracts to a corporate purchaser, the fair market value of builder's holdbacks assumed by the purchaser would be considered to be non-share consideration for purposes of s. 85(1). ...

9 November 1999 External T.I. 9912655- CONFIDENTIALITY COVENANT-- summary under Paragraph 6(3)(e) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3)- Paragraph 6(3)(e) The Agency indicated that an amount paid to a dismissed employee to secure a confidentiality agreement would be described by s. 6(3)(e) as consideration for a covenant with reference to what an officer or employee would not do after the termination of the employment. ...

7 July 2006 Income Tax Severed Letter 2006-0177341R3- Creation of an income trust-- summary under Subsection 97(2) Summary Under Tax Topics- Income Tax Act- Section 97- Subsection 97(2) rollover on transfer for exchangeable LP units Rulings that the s. 97(2) election was available for various transfers of property to a partnership in consideration for exchangeable LP units. ...

They transfer equal portions of their current equal shareholdings of Opco to Realtyco under s. 85(1) in consideration for preferred shares of equivalent fair market value. Opco transfers realty to Realtyco under s. 85(1) in consideration for preferred shares of equivalent FMV. ... CRA then stated: Furthermore, as regards the dividend deemed to be received by Opco, an increase in interest of Third Party described in subparagraph 55(3)(a)(v) would result from the transfer of the shares of Opco by Third Party to Realtyco in consideration for preferred shares in the capital of Realtyco, as well as on the redemption of the preferred shares in the capital of Realtyco held by Opco. ...

They transfer equal portions of their current equal shareholdings of Opco to Realtyco under s. 85(1) in consideration for preferred shares of equivalent fair market value. Opco transfers realty to Realtyco under s. 85(1) in consideration for preferred shares of equivalent FMV. ... CRA then stated: Furthermore, as regards the dividend deemed to be received by Opco, an increase in interest of Third Party described in subparagraph 55(3)(a)(v) would result from the transfer of the shares of Opco by Third Party to Realtyco in consideration for preferred shares in the capital of Realtyco, as well as on the redemption of the preferred shares in the capital of Realtyco held by Opco. ...

DC has no subsidiaries other than Newco, which it incorporated for nominal consideration. ... DC transferred (DC Transfer 1) the Canadian Transferred Business (which included the accounts receivable, trade receivables, inventories, prepaid expenses and business assets) to Newco in consideration for the assumption of liabilities, the issuance of a promissory note (Newco Debt) and the issuance of common shares, with a s. 85(1) election being filed. ... DC will become legally obligated to make the DC Cash Transfer and to transfer the Newco Common Shares and a loan receivable (the DC Receivable) from Newco to TCo in consideration for the assumption of a portion of the debt, owing by DC to a non-resident indirect subsidiary of Foreign Parentco, equal in amount to the DC Receivable and, respecting the transferred Newco share and DC Cash Transfer, for the assumption of liabilities and the issuance of TCo Preferred Shares. ...

(October 1990 Access Letter, ¶1483)-- summary under Subsection 191(4) Summary Under Tax Topics- Income Tax Act- Section 191- Subsection 191(4) Where an individual transfers shares of Opco to Holdco in consideration for retractable preferred shares whose redemption amount will be determined by a resolution of the directors, the redemption amount will be considered to be a specified amount provided that the directors set the redemption amount prior to the issuance of the shares. ...

5 April 2004 Ruling Case No. 50019-- summary under Financial Service Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Financial Service The quarterly fees received in arrears (based on the market value of the investment portfolio) by an investment manager with full discretion as to all investment decisions were consideration for taxable supplies by it given that the primary service provided by it was expertise in the selection of securities, which was characterized as the provision of investment advice. ...

(Tax Window, No. 2, p. 5, ¶1187)-- summary under Qualified Small Business Corporation Share Summary Under Tax Topics- Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1)- Qualified Small Business Corporation Share Mortgages held by a developer which were the consideration for sales of its land inventory would not qualify as being used in an active business because the funds tied up in the mortgages are not used in the active business. ...