Search - consideration

Reasons: The fact that the only consideration paid by the individual for a home is the assumption of an existing mortgage does not in itself preclude the individual from qualifying for the HBTC if all the conditions for the credit are met. ... You want to know if you and your spouse will be eligible for the HBTC if you acquire a home that is subject to a mortgage and the only consideration given is the assumption of the mortgage from the previous owner. ... The fact that the only consideration paid for a home is the assumption of an existing mortgage does not in itself prevent you and your spouse from qualifying for the HBTC. ...

Under the terms of the PNG Lease, for the consideration specified therein the lessor has, inter alia, granted and leased exclusively unto the lessee all the leased substances, subject to the royalties reserved, as well as additional rights including "XXXXXXXXXX". ... All consideration for entering into the PNG Lease was payable to the lessor within XXXXXXXXXX days of the date thereof. ... As the property that is the subject of the PNG Lease is described as "all mines and minerals" in the subject land and the lessor has specifically granted to the lessee "the exclusive right and privilege to explore for, drill for,... leased substances" which is defined to include "all petroleum, natural gas and related hydrocarbons", we believe that the consideration received by the lessor for entering into the PNG Lease (i.e. the bonus and lump sum rental payments) represent amounts received by the lessor in respect of the disposition of a Canadian resource property. ...

The Redemption Amount in respect of each share, at the time of issuance thereof, will be expressed as a fixed dollar amount that will not be determined by formula or subject to change thereafter and will not exceed the fair market value of the consideration for which such share is issued. None of the Class B Shares of TC will be issued for consideration that includes a taxable preferred share. One common share of TC was issued to Individual2 for nominal consideration on incorporation. ...

However, you also indicate that the preferred shares issued by Holdco as consideration had a paid-up capital equal to their fair market value. ... For example, under the former version of paragraph 84.1(1)(a), where the consideration paid by the purchaser corporation included only shares of the purchaser corporation and cash, an immediate capital gain could arise on the disposition of the shares of the subject corporation. ... Similarly, for example, under the former version of paragraph 84.1(1)(b), where the consideration paid by the purchaser corporation included only shares of the purchaser corporation, a reduction in the adjusted cost base of a purchaser corporation's shares could arise. ...

As you noted, the Department has previously stated that where a shareholder acquired an interest in a life insurance policy from a corporation for consideration that was less than the fair market value ("fmv") of the policy, the excess of the fmv over the consideration paid by the shareholder, if any, would be included in the shareholder's income pursuant to subsection 15(1) of the Act. ... It seems rather inappropriate that an interpretation intended to provide an equitable result under the Act should be extended to apply to situation where a shareholder acquires an interest in a policy from a corporation for no consideration and argues that the full amount of the subsection 15(1) income inclusion (i.e., the fmv of the policy), rather than the excess as described above, be added to an acb of the policy. ... Accordingly, without further consideration we are unable to express a view as to the income tax consequences determined by you with regard to the various scenarios set forth in your letter. ...

Principal Issues: Would interest continue to be deductible after a subsection 86(1) reorganization, where the fair market value of the original shares has declined and the consideration taken back on the reorganization reflects this declined value? ... You describe a hypothetical subsection 86(1) share for share exchange, where the original shares have declined in value and the shares received as consideration for the original shares have a fair market value which is less than the remaining amount of the loan initially taken out to acquire the original shares. No non-share consideration is received as part of this arrangement. Without having all the facts in your particular situation, we are unable to comment on the continuing deductibility of interest expense incurred on the loan after the exchange of shares has occurred. ...

No valuable consideration- no benefit of any kind- to the donor or to anyone designated by the donor may result from the payment" (paragraph 3 of IT-110R2). Unlike other teaching or training, religious training is not viewed as consideration for purposes of the definition of a gift 962770 XXXXXXXXXX A.M. ... No valuable consideration- no benefit of any kind- to the donor or to anyone designated by the donor may result from the payment. ...

With respect to the above situation, we have given consideration as to whether the attendance at the conference by the directors without charge represents remuneration in the nature of directors' fees for the purposes of paragraph 6(1)(c) of the Act (the Act). In this regard, such remuneration normally represents consideration that is for the benefit of the directors personally. ... We also wish to mention that in the above situation, it is our view that even though each of the directors of the non-profit corporation may only receive nominal consideration for the services they provide (or perhaps no consideration), it our view that they could nonetheless be considered to be holding an office or employment as a consequence of the definition in subsection 248(1) of the Act. ...

Reasons FOR POSITION TAKEN: The donation would not be without consideration, since the taxpayers would receive a XXXXXXXXXX in exchange for their donation. ... As indicated in paragraph 3 of Interpretation Bulletin IT-110R2, a gift is a voluntary transfer of property without valuable consideration. ... However, the third condition would not be met as the donation would not be without consideration, since the taxpayers would receive a XXXXXXXXXX in exchange for their donation. ...

In general, a "gift" for purposes of the Income Tax Act ("the Act") means a voluntary transfer of the donor's property without valuable consideration to the donor. ... Similarly, the purchase of donated property or raffle tickets generally does not result in a gift to the charity as the purchaser is receiving consideration for the amount paid. Should an individual choose to pay more than fair market value for a property or other advantage in order to benefit a charity, a gift may be recognized for tax purposes if the value of the consideration and other advantages to the individual fall within the limits stipulated in the draft legislation. ...