Search - consideration

Accordingly, it should not, in our view, constitute consideration for a donation made by the employee. ... Your question is whether the entry into the draw constitutes consideration for those employees who actually make donations. Our Comments As stated in paragraph 3 of our Interpretation Bulletin IT-110R3, a gift, for the purposes of sections 110.1 and 118.1 of the Income Tax Act (the "Act"), is a voluntary transfer of property without valuable consideration. ...

If farmer transfers assets to corp including A\R does he report income no matter the consideration? ... Position: 1. 98(5) will apply provided corporate transferee continues to carry on the business of the partnership and uses the partnership property. 2.Income no matter nature of the consideration. 3.Income to partners when realized. ... In this regard we offer the following general comments: (1) It is our opinion that where all the partners in a partnership have transferred their partnership interests to a corporation, subsection 98(5) will apply to the dissolution of the partnership provided the corporate transferee continues to carry on the business of the partnership, using the partnership property formerly belonging to the partnership. (2) Where a taxpayer using the cash method of reporting income transfers all his accounts receivable to a corporation for any consideration that taxpayer would pursuant to subsection 28(5) of the Act include in income the fair market value of amounts received in satisfaction of the debts at the time he ceases to carry on the business of farming. ...

Reasons: Loans were non interest bearing and no adequate consideration received. ... In the situation you described, the loan was non-interest bearing and you do not indicate that any other adequate consideration was received in respect of the loan. ... Whether in a specific case adequate consideration in respect of a loan was received is a question of fact which can only be determined after all the facts and details have been established and reviewed. ...

As sole consideration for the transfer, A Ltd. issues one additional common share to Mr. ... A as consideration for the capital property transfer to it is greater than the fair market value of the transferred property. ... However, it is our view that a benefit may be conferred on a shareholder where the shares taken back by the shareholder as consideration are of a different class or if there are other shareholders of the corporation. ...

The individual incorporates Newco, a taxable Canadian corporation, so that he owns 100% of its issued shares and causes Company A to dispose of all its active business assets to Newco utilizing the provisions of subsection 85(1) of the Act, for consideration less than the fair market value of the assets disposed. ... If the property transferred was owned by Company A when the individual acquired the shares of Company A, favourable rulings would be given only if the consideration referred to was equal to the fair market value of the property transferred at the time the individual acquired the shares of Company A. Similarly, if the adjusted cost base of the property to be transferred is based on a V-day valuation, then the V-day value of the property to be transferred would usually be the appropriate minimum amount of the consideration. ...

Each of the common shareholders of Holdco would transfer all of his shares of Holdco to Newco, using the rollover provisions of subsection 85(1) of the Act, and would receive as consideration one common share of Newco for each common share of Holdco. 5. ... X's shares of Holdco, issuing a promissory note to him as consideration. ... Also, no consideration has been given to other provisions, such as subsections 55(2), 110.6(7), 110.6(8) or 112(3), of the Act, which may apply in a specific situation where dividends are paid or shares are sold. ...

X in 1989 in exchange for additional consideration consisting only of shares of Publico with a fair market value of $1,500. ... The cash paid for the option could, for the purposes of paragraph 85.1(2)(d) of the Act, be considered to be consideration received for the option and not for the shares of Opco. ... In our opinion, the cash received on the granting of the option would be consideration for the granting of the option which would be subject to the provisions of the Act for the year in which the option was granted, as described above. ...

On the second page, first paragraph of "Administrative Considerations", it may be clearer to state that employees must return to work for a period equal in time to the period they were on leave.  ... On the third page, fourth paragraph under "Administrative Considerations", the three month leave must be used for full-time attendance at a designated educational institution.  ... On the third page, last paragraph under "Administrative Considerations", there is no prohibition in the Income Tax Act against reimbursing the employee for such costs as tuition or text books.  ...

The individual incorporates Newco, a taxable Canadian corporation, so that he owns 100% of its issued shares and causes Company A to dispose of all its active business assets to Newco utilizing the provisions of subsection 85(1) of the Act, for consideration less than the fair market value of the assets disposed. ... If the property transferred was owned by Company A when the individual acquired the shares of Company A, favourable rulings would be given only if the consideration referred to was equal to the fair market value of the property transferred at the time the individual acquired the shares of Company A. Similarly, if the adjusted cost base of the property to be transferred is based on a V-day valuation, then the V-day value of the property to be transferred would usually be the appropriate minimum amount of the consideration. ...

X in 1989 in exchange for additional consideration consisting only of shares of Publico with a fair market value of $1,500. ... The cash paid for the option could, for the purposes of paragraph 85.1(2)(d) of the Act, be considered to be consideration received for the option and not for the shares of Opco. ... In our opinion, the cash received on the granting of the option would be consideration for the granting of the option which would be subject to the provisions of the Act for the year in which the option was granted, as described above. ...