Search - consideration

In finding that both amounts were interest, the Directorate stated: [T]he interest awarded by the court under the provisions of Article 1618 CCQ as well as the additional indemnity awarded to the taxpayer under Article 1619 CCQ are interest by their nature since they represent a return, consideration or indemnity for the use or holding by the wrongdoer of a sum of money that was due to the taxpayer. ...

A sold all of A’s Opco shares to Holdco for non-share consideration equal to the fair market value of the shares disposed of. ...

A, who held ½ of the common shares of Opco having a PUC and ACB of $100, a safe income on hand of $699,900 and a fair market value of $1,000,000, transferred his common shares to a new corporation (“Holdco”) in consideration for common shares of Holdco, with the s. 85(1) agreed amount being $300,000, thereby realizing a $299,900 capital gain for which he claimed the capital gains deduction. ...

A sold her Opco shares to Holdco in consideration for a term note payable over 5 years. ...

A sold her Opco shares to Holdco in consideration for a term note payable over 5 years. ...

14 June 2001 External T.I. 2000-0044935 F- Coût des actions-- summary under Adjusted Cost Base Summary Under Tax Topics- Income Tax Act- Section 54- Adjusted Cost Base cost to Pubco of CCPC shares acquired by it in exchange for treasury shares equal to the addition to its stated capital account, rather than the Pubco shares’ FMV The requisite number of shareholders of Opco (a private corporation) agreed, at a time that the Pubco shares were trading for $2 per share, to accept an offer of Pubco to acquire each of their shares in consideration for three Pubco shares plus $4 of cash (or at their option, solely for $10 of cash). ...

Paragraph 5 of section 13 of the QCA provides that "[i]n the absence of other provisions in that respect in the constituting act or by-laws of the company, the shares without par value may be issued and allotted from time to time for such consideration, payable in cash, property or services, as may be fixed by the board of directors of the company…” Consequently, the determination of the issue price is left to the discretion of the Board of Directors and is not necessarily the market value of such shares. … [T]he amount paid is the stated capital in respect of the Class A shares which reflects the price agreed between the corporation and the debenture holders. ...

CCRA was prepared to accept that s. 34.1(1) did not apply, provided that the dissolution of ABC and the creation of the new partnership was not motivated by tax considerations. ...

18 April 2002 Internal T.I. 2002-0118827 F- DEBENTURES CONVERTIBLES-- summary under Paid-Up Capital Summary Under Tax Topics- Income Tax Act- Section 89- Subsection 89(1)- Paid-Up Capital PUC of shares issued on debenture conversion equal to consideration stated in debenture indenture and in financial statements, rather than the FMV of shares stated in resolution The corporation, on the conversion by holders of convertible debentures that it had previously issued, passed a resolution stipulating that the stated capital of the shares issued by it on the conversion was equal to the shares’ market value at that time, and took a deduction under s. 20(1)(f)(ii) based on the excess of such market value over the face value of the converted debentures. ...

. … If a taxpayer is motivated by tax considerations when he or she enters into a business or property venture, this will not detract from the venture's commercial nature or characterization as a source of income under the Act. ...