Search - consideration

Each of Leg1 and Leg2 will transfer all of their shares of Holdco to Newco in consideration for a note (Note 1 or Note 2) equalling the aggregate ACB of the transferred shares and for Class E non-voting non-cumulative redeemable retractable Class C shares of Newco, electing under s. 85(1). ...

Prior to maturity, and when the adjusted cost base of her interest (of $120,000) is less than its fair market of her interest of $140,000 (based on the fair market value of the investments in the segregated fund), she transfers her interest to a taxable Canadian corporation in consideration only for common shares. ...

After repeating its position in Q.6-2 on its FAQ page as to the scope of the CRA policy for excluding “extraordinary items” from qualifying revenues, CRA stated: Relevant considerations in the current situation could include whether the Contractor had received payments in the past upon the temporary suspension of operations at the mine, whether the Contractor was entitled to receive compensation upon a suspension of operations at the mine under its contract with the Operator and the degree of control the Contractor had with respect to the Payments and Payment Adjustments. ...

XIII tax, the Directorate stated: [T]he Reimbursements would be made pursuant to the Agreement in return for equivalent consideration paid by USCo to CanCo’s employees. ...

CRA responded: “[G]ross REIT revenue” would exclude amounts that are loan proceeds and equity contributions to the extent that they do not constitute consideration to which the entity expects to be entitled in exchange for goods or services, or as income arising in the course of the entity’s activities. ...

Only amounts resulting in an inflow of cash, receivables or other consideration are included in qualifying revenue, therefore, an eligible entity would not be able to gross up their qualifying revenue by a notional amount. ...

CRA responded: Canada’s position is that any assessment that relies on a domestic anti-avoidance rule will be eligible for MAP consideration- but Canada will simply present the Canadian position relying on that anti-avoidance rule to the other Competent Authority for potential relief by the other country. ...

On the other hand, if it indeed was a sublease then, given that “the only parties to the sublease are the sublessor and the subtenant” it would be plausible that the sublease took effect before the deadline, unless further considerations were engaged, for example, the sublease contained a condition stipulating that the agreement would not take effect until the signature of the landlord was procured. ...

CRA indicated that s. 86.1(1)(a) did not accommodate an exchange (here, a disposition of US Pubco shares in consideration for Spinco shares) so that this was not an eligible distribution contemplated by s. 86.1. ...

In the final version of its response, CRA added the statement: At this time, the CRA is in the process of consulting internal stakeholders to evaluate and potentially develop a position on this issue, while giving consideration to the impacts on other foreign reporting forms ...