Search - consideration

The Company traded-in the first yacht as partial consideration for its share of the second yacht. ... The calculation of the amount or value of the benefit is usually based on the fair market rent for the property minus any consideration paid to the corporation by the shareholder for the use of the property. ... The consideration paid to the corporation by the shareholder for the use of the property. ...

In its ordinary meaning, a pension is a payment to be made to a person by the person's former employer or by a government authority in consideration of past services. In this particular case, the payment from the Organization is not "out of or under a superannuation fund or plan", is not in consideration of past services and is not being made by the former employer. ... Cranswick (82 DTC 6073) and include the following: (a) the taxpayer had no enforceable claim to the payment; (b) the taxpayer made no organized effort to receive the payment; (c) the taxpayer neither sought after nor solicited the payment; (d) the taxpayer had no customary or specific expectation to receive the payment; (e) the taxpayer had no reason to expect the payment would recur; (f) the payment was from a source that is not a customary source of income for the taxpayer; (g) the payment was not in consideration for or in recognition of property, services or anything else provided or to be provided by the taxpayer; and (h) the payment was not earned by the taxpayer as a result of any activity or pursuit of gain carried on by the taxpayer and was not earned in any other manner. ...

(iii) as consideration for insurance in respect of a period after the end of the year,... ... Since the year 1 premium paid by XYZ Ltd. represents consideration for insurance in respect of a period after the end of year 1, we are of the view that the premium is a prepaid expense and that subparagraph 18(9)(a)(iii) of the Act would apply. Based on the facts, the amount that XYZ Ltd. would be entitled to deduct in any particular year would be calculated by taking into consideration expected claims against XYZ Ltd. over the life of the goods manufactured in year 1. ...

A gift, for purposes of sections 110.1 and 118.1, is a voluntary transfer of property without valuable consideration. ... Proposed amendments to the Act will allow the CCRA to recognize a gift, for tax purposes, in certain circumstances where a donor receives consideration for the transfer of property. ... The CCRA generally does not recognize temporary transfers of property as gifts and a frequent consideration in assessing whether a gift has occurred is whether the subject of the gift could revert to the grantor. ...

Principal Issues: 1) Is a beneficiary considered to have received proceeds of disposition where the beneficiary releases and surrenders an income interest in an testamentary trust for no actual consideration and makes no direction concerning who is entitled to receive the benefit as a result of the release or surrender? ... Position: 1) No 2) Typically no capital gain or loss arises as a result of such a disposition of a capital interest in a trust Reasons: 1) The release of an income interest in a trust for no consideration and the related tax consequences is commented on in IT-385R2 and has been the subject of various rulings and opinions. 2) The interaction of 107(2), 107(1)(a) and the definition of cost amount in 108(1) XXXXXXXXXX 992808 A. ... Although we are not able to comment specifically on the situation described in your letter, the comments in paragraph 9 of Interpretation Bulletin IT-385R2, Disposition of an Income Interest in a Trust, describe the tax consequences of a release or surrender of an income interest in a trust for no consideration where the holder of the income interest does not direct in any manner who is entitled to receive the benefits as a result of the release or surrender. ...

The shares issued by the other corporation as consideration for the common shares transferred to it were shares of a special class ("preferred shares") that could be converted into common shares of the other corporation on a 1 for 1 basis. You indicated in our telephone conversation on February 15 (Cooke/XXXXXXXXXX) that the preferred shares taken back as consideration have a high redemption value, adjusted cost base and paid-up capital such that at the time the preferred shares were issued no capital gain or loss would result on their redemption or sale at that time. ... Therefore, as noted above, an analysis of the elements that make up any capital gain on the preferred shares would be required and such analysis would also require consideration of other factors, such as the terms and conditions of the preferred shares (i.e., dividend and liquidation entitlements) and/or whether there are any restrictions on the conversion rights, since these factors may also affect the fair market value of the preferred shares. ...

It states that each request is considered on its own merits, taking into consideration sound business reasons. ... Since the selection of an estate's period for which its accounts are made up is not an election, the fairness provisions described here are not relevant; nevertheless, they are described here to demonstrate that the fairness considerations are similar to the considerations for a fiscal year-end change. ...

As consideration for the Canco shares transferred to Holdco NRP receives non-share consideration from Holdco equal to the fair market value of the Canco shares so transferred. Since Holdco is connected with Canco immediately after the transfer, Holdco will be deemed to have paid and NRP will be deemed to have received a dividend from Holdco pursuant to paragraph 212.1(1)(a) to the extent the fair market value of the non-share consideration paid by Holdco exceeds the paid-up capital of the shares of Canco. ...

Larsen, 99 DTC 5757 that paragraph 12(1)(g) of the Act does not apply to a contract granting the right to cut trees on a property over a five-month period in return for consideration of $70 per cubic metre of cut timber because it was a one-time contract to remove timber. Pursuant to the judgment in this case, what is CCRA's position on the application of paragraph 12(1)(g) of the Act to a situation where a taxpayer receives an amount as consideration for the right to cut and remove timber from the taxpayer's woodlot? ... In general, when a taxpayer who is not in the business of selling timber receives an amount in consideration for the right to cut and remove timber from the taxpayer's woodlot and where the transaction is not an adventure or concern in the nature of trade, this sale is taxable as a capital gain if all the following conditions are met: a) the land was not acquired with the specific intent of selling timber or land; b) the land was cleared to improve or maximize its value (for example, to expand a farm operation); c) it is an isolated sale of a capital property by the taxpayer (and not the sale of a continuing right to enter and take away timber); d) the price of timber is fixed; and e) the timber is to be removed over a short period of time (such as several months or such shorter period of time that, given the particular set of circumstances, could be considered as a short period). ...

Generally, a plan will be considered a superannuation or pension fund where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and the contributions are used to provide an annuity or other periodical payment on or after the employee's retirement in consideration for his or her employment services. ... An annuity or other periodical payment made, esp. by a government, a company, or an employer of labour, in consideration of past services. ...