Search - consideration

The Partnership assumed the Mortgage and paid for the land by way of an agreement for sale; (c) It is now proposed that the land be transferred back to the Company and the Partnership be liquidated pursuant to Section 85(2) and Section 85(3) of the Income Tax Act; (d) On the transfer under Section 85(2), it is proposed that the consideration to the Partnership for the transfer of the land be a combination of the assumption of the Mortgage, preferred shares equal in value to the adjusted cost base of the Partnership interests of the partners in the Partnership, and common shares equal to the balance up to the fair market value. In our view, the adjusted cost base of the preferred shares to the partner after the distribution of those shares from the Partnership to the partners is not reduced under the provisions of paragraph 85(3)(e) of the Act by the amount of the Mortgage assumed, as the assumption of the Mortgage by the company does not represent consideration received by a partner for the disposition of his interest in the partnership. ... In addition, in our view, in order to qualify under the provisions of subsections 85(2) and (3) of the Act all the property of the Partnership must be disposed of to one corporation (the corporation) and immediately before the winding- up of the Partnership, there must be no partnership property other than money or property received from the corporation as consideration for the disposition of its assets. ...

With the exception of CCO, the Taxpayers acquired their Exchangeable Shares on XXXXXXXXXX, in consideration of their transfer to ACO of their Units. ... DCO acquired these Exchangeable Shares on XXXXXXXXXX, in consideration of its transfer to ACO of its Units. ... The relevant Taxpayer will receive, as consideration for the Exchange, the Exchange Consideration, which will consist solely of BCO Shares. ...

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. ...