Search - consideration

Accordingly, it will likely be necessary to determine the appropriate allocation of the amounts to be paid as between that part is paid as consideration for the right to use computer software and that part that is paid as consideration for services. ... No deductions are permitted in determining the amount of income that is subject to this tax, e.g. it is the gross amount paid to the non-resident as consideration for the right to use computer software that is subjected to tax at the applicable rate without regard to expenses of any kind incurred by the non-resident. ... Where an amount is paid to a non-resident in part as consideration for services rendered in Canada and in part as consideration for services rendered outside Canada it is necessary to make an allocation of the amount as between in the two in order to determine the amount required to be withheld under Income Tax Regulation 105. ...

Should you wish an in-depth consideration of the proposed transactions referred to in your letter, your request should follow the formal set out in Information Circular 70-6R2 for requesting advance income tax rulings. ... For example, a tax-deferred basis may involve a situation in which A Co. transfers an asset to B Co. with which it does not deal at arm's length, receiving as consideration preferred shares, and both file elections under subsection 85(1). ... The comments set out in this letter are of a general nature and do not take into account the numerous additional considerations that might arise in the context of specific fact situations. ...

Accordingly, it will likely be necessary to determine the appropriate allocation of the amounts to be paid as between that part that is paid as consideration for the right to use computer software and that part that is paid as consideration for services. ... No deductions are permitted in determining the amount of income that is subject to this tax, e.g. it is the gross amount paid to the non-resident as consideration for the right to use computer software that is subjected to tax at the applicable rate without regard to expenses of any kind incurred by the non-re5ident. ... Where an amount is paid to a non-resident in part as consideration for services rendered in Canada and in part as consideration for services rendered outside Canada it is necessary to make an allocation of the amount as between the two in order to determine the amount required to be withheld under Income Tax Regulation 105. ...

Your first question is whether the requirement in subsection 85(1) that the consideration for property transferred to a taxable Canadian corporation include shares of the capital stock of the corporation would be satisfied if such consideration consists of shares to be issued by the corporation after legal authorization to do so is obtained. ... It is our opinion that, technically speaking, the above-mentioned requirement in subsection 85(1) of the Act would not be satisfied where the transferee corporation cannot immediately issue shares as partial or full consideration for the property transferred to it. ... With regard to your second question, it is our opinion that co- ownership in a single share of a corporation received as consideration for the transfer of property to the corporation would qualify as share consideration for purposes of a subsection 85(1) rollover. ...

Therefore, where a person resident in Canada gives consideration for a right to cut or remove timber from such a limit owned by a non-resident, that consideration will be expressly subject to income tax under Part XIII of the Act pursuant to paragraph 212(1)(e) thereof to the extent that it "is dependent on, or computed by reference to, the amount of timber cut or taken". ... Where consideration is received by a non-resident "for a right under or pursuant to which a right to cut or take timber from a timber resource property or a timber limit in Canada is obtained or derived", the question then becomes the extent, if any, that such consideration is "dependent on, or computed by reference to, the amount of timber cut or taken". ... As such, it is arguable that consideration received by a non-resident for the disposition of a right to cut and remove timber from a timber resource property or a timber limit in Canada, whether or not that consideration is a "timber royalty" pursuant to paragraph 212(1)(e) of the Act, may be subject to income tax under Part I of the Act. ...

3 November 2010 External T.I. 2010-0383481E5- Principal Residence Exemption Unedited CRA Tags 40(2)(b), 248(1) Principal Issues: What are the income tax consequences when a parent transfers for estate planning purposes partial ownership of a principal residence to an adult child for no consideration? ... XXXXXXXXXX James Kerr 2010-038348 November 3, 2010 Dear XXXXXXXXXX: RE: Principal Residence Exemption I am writing in reply to your email dated October 12, 2010 enquiring about the income tax consequences when a parent transfers for estate planning purposes partial ownership of a principal residence to an adult child for no consideration. ... You seemed to be concerned with whether there is a disposition if no consideration were to be paid and where the adult child continues to reside in the principal residence. ...

The sole fact than an employee is beneficiary under an EPSP does not constitute consideration payable to acquire an interest in the EPSP. 5-943213 XXXXXXXXXX G. ... A personal trust, as defined pursuant to subparagraph 248(1) of the Act, includes an inter vivos trust in which no beneficial interest was acquired for consideration payable to the trust or to any person who has made a contribution to the trust. ... However, in our view, the sole fact that an employee is a beneficiary under an EPSP due to his employment does not constitute consideration payable to the employer to acquire a beneficial interest in the said EPSP. ...

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère. 1994 Canadian Tax Conference Interest-Bearing Note Issued in Consideration For the Redemption or Repurchase of Shares In certain circumstances, corporations may purchase their issued shares for cancellation or redeem their shares and issue as consideration therefor an interest-bearing note. ... It is the Department's view that the interest payable on a promissory note issued as consideration for the redemption or purchase for cancellation of a corporation's capital stock is not deductible under paragraph 20(1)(c). ...

Position: No position taken Reasons: Issue is under consideration by TSO XXXXXXXXXX 2000-002232 Wayne Antle December 18, 2000 Dear XXXXXXXXXX: Re: Purchase of Computers with Professional Development Funds This is in response to your letter dated April 14, 2000 concerning whether the purchase of computers with professional development funds for the use of administrative officers ("AO's") would be included in the income of the AO's as a taxable benefit from employment. It is our understanding that this issue has been under consideration by the XXXXXXXXXX Tax Services Office. ... As discussed, we will not comment on transactions that are under consideration by a tax services office, unless we are asked to do so by a field office. ...

The consideration received by the transferor is one preferred share of the transferee having a nominal value which is below the fair market value of the transferred property. ... In each case it could reasonably be regarded that the value of the transferred property in excess of the consideration paid is a benefit that the transferor desired to have conferred on the transferee, a person related to the transferor. ...