Search - consideration

We assume that you and your wife would acquire the shares of the Corporation directly from XXXXXXXXXX in consideration for a promissory note having a principal amount equal to the fair market value of the shares of the Corporation. ... In essence, section 84.1 of the Act will not have any immediate incidence if the amount of the non-share consideration and/or the paid-up capital of the shares received by you and your wife in consideration for the shares of the Corporation does not exceed the greater of the paid-up capital and the adjusted cost base of the Corporation shares. As described in paragraph 8 of IT-489R, paragraphs 84.1(2)(a) and 84.1(2)(a.1) of the Act provide rules for determining the adjusted cost base of Corporation shares for the purposes of determining the maximum non-share consideration or paid-up capital that you and your wife could receive from Holdco as consideration for the disposition of shares of the Corporation without any incidence under section 84.1 of the Act. ...

A”) for nominal consideration. Subsequent to the issuance of the Class B preferred share to Mrs. ... A for nominal consideration and the payment of any discretionary dividends on the Class B preferred shares. ... A as consideration for the share does not represent the fair market value of such share at the time of subscription. ...

If the PAC operates to reduce the redemption amount, the condition stipulated in the mid-amble of subsection 191(4), that the specified amount does not exceed the FMV of property received as consideration on the issuance of the shares, will not be met. ... The specified amount would equal, but would not exceed the fair market value of the consideration for which the shares are issued and the consideration received for the issuance of the shares would not include a taxable preferred share. The terms and conditions of the shares also separately contain a PAC in respect of the redemption price of the shares, based on the fair market value of the consideration for which such shares were issued. ...

The primary consideration in those interpretations was the connection to a legal or contractual obligation to pay an amount, as interpreted by the court in Redclay Holdings Ltd v The Queen, 96 DTC 1207 (General Procedure). ... Rather, the wording of the legislation is such that the tax is likely determined pursuant to a specific calculation which gives consideration to the value of the trade-in. For GST/HST purposes, under paragraph 153(4)(c) of the Excise Tax Act (“ETA”), if a purchaser is not required to collect tax in respect of the trade-in, the value of the consideration for the automobile is deemed to be equal to the amount, if any, by which the value of the consideration for that automobile exceeds the amount credited to the purchaser in respect of the trade-in. ...

Principal Issues: If the taxpayer receives a demand non-interest bearing promissory note as consideration for property transferred to a spousal trust, will the adjusted cost base of the promissory note be equal to the stated value of the note (which should also be equal to its fair market value)? ... Your view- Questions 1 and 2 You are of the view that subsection 73(1) will continue to apply since subsection 73(1) does not preclude a taxpayer from receiving a note or similar debt instrument as consideration for the transferred property. ... In our view, this provision applies whether or not the taxpayer receives a promissory note or other consideration for the property transferred. ...

The two promissory notes issued by TC1 will be referred to as the "TC1 Consideration Notes" and the two promissory notes issued by Subco2 will be referred to as the "Subco2 Consideration Notes". ... In connection with the winding-up of DC, DC will distribute the TC1 Consideration Notes and the TC1 Redemption Note to TC1 and the Subco2 Consideration Notes and the Subco2 Redemption Note to TC2. As a result of the assignment and distribution of the TC1 Consideration Notes and the TC1 Redemption Note to TC1, the obligations under each such promissory note will be cancelled. ...

The Disposition occurred on XXXXXXXXXX and the consideration received by XCo XXXXXXXXXX. The proceeds of disposition to XCo for purposes of the Act was equal the FMV of the consideration received. ... The total principal amount of the ACo Debt was approximately $XXXXXXXXXX; (i) AcquisitionCo acquired the XXXXXXXXXX Consideration from XAmalco; and (j) AcquisitionCo transferred the XXXXXXXXXX Consideration to each holder of XXXXXXXXXX Notes in exchange for and in cancellation of such notes. 15. ...

(c) On XXXXXXXXXX sold its XXXXXXXXXX portfolio to an arm's-length third party in consideration for cash equal to the fair market value of the portfolio. ... (d) XXXXXXXXXX sold XXXXXXXXXX operations to arm's-length third parties in consideration for cash equal to the fair market value of such assets. ... (f) XXXXXXXXXX will sell all of the shares of each of XXXXXXXXXX to XXXXXXXXXX in consideration for cash equal to the fair market value of such shares. ...

On or before XXXXXXXXXX, and immediately before the transactions described below, US Subco will purchase the following assets from various members of Group A at their FMV and issue the following FMV consideration: i) shares of USco 7 from USco 3 for sole consideration consisting of US$XXXXXXXXXX in cash; ii) the Group A-1 Assets from USco 13 for sole consideration consisting of XXXXXXXXXX newly issued common shares of US Subco with a FMV of US$XXXXXXXXXX; and iii) the Group A-2 Assets from USco 18 for consideration consisting of XXXXXXXXXX newly issued common shares of US Subco with a FMV of US$XXXXXXXXXX, US$XXXXXXXXXX in cash and US$XXXXXXXXXX newly issued non-voting preferred shares of US Subco with a FMV of US$XXXXXXXXXX As a result of the above, the aggregate purchase price for the above assets acquired by US Subco will be equal to their aggregate FMV of US$XXXXXXXXXX and the aggregate FMV consideration to be paid by US Subco in respect of these assets will consist of US$XXXXXXXXXX of common shares of US Subco, US$XXXXXXXXXX of non-voting preferred shares of US Subco and cash of US$XXXXXXXXXX. 13. Newco US will then purchase all the issued and outstanding common shares of US Subco for their FMV in exchange for cash and/or common shares of Newco US that have a FMV equal to the US Subco shares so acquired by Newco US as follows: i) USco 13 will transfer its XXXXXXXXXX common shares of US Subco to Newco US for sole consideration consisting of XXXXXXXXXX newly issued common shares of Newco US with a FMV of US$XXXXXXXXXX; ii) USco 18 will transfer its XXXXXXXXXX common shares of US Subco to Newco US for sole consideration consisting of XXXXXXXXXX newly issued common shares of Newco US with a FMV of US$XXXXXXXXXX; and iii) USco 4 will transfer its XXXXXXXXXX common shares of US Subco to Newco US for sole consideration consisting of US$XXXXXXXXXX in cash. ... As sole consideration therefor, Pubco will issue notes payable with an aggregate principal amount and FMV of US$XXXXXXXXXX (the "Pubco Notes"). ...

On XXXXXXXXXX, Profitco subscribed for an additional XXXXXXXXXX common shares of Lossco for consideration of $XXXXXXXXXX and, during XXXXXXXXXX, Profitco subscribed for an additional XXXXXXXXXX common shares of Lossco for consideration of $XXXXXXXXXX. ... Forco 2 will acquire all the shares of Lossco held by Forco 3 for fair market value consideration. ... Newco will then redeem the Class B shares issued to Lossco as described in paragraph 17 above for cash consideration equal to their fair market value. 19. ...