Search - consideration

Under the proposed amendments, a payment made after December 20, 1991 that is otherwise a periodic pension payment will be disqualified as such and thus subject to the full 25% Part XIII tax where, with certain exceptions, the total of all payments made under the RRIF at or before the time of the payment and in the year exceeds the greater of (a) twice the amount that would be the minimum amount under the fund for the year, and (b) 10% of the amount that would be the fair market value of the property held in connection with the fund at the beginning of the year if all property transferred in the year and before that time to the carrier of the fund as consideration under the fund had been transferred immediately before the beginning of the year and the definition "minimum amount" in paragraph 146.3(1)(b.1) were applicable with respect to all RRIFs. ...

These shares were acquired by the non-resident from Treasury for a cash consideration of $10,000,000. 2. ...

In our opinion i) On the disposition of the loan to Subsidiary Parent will realize a capital loss on the exchange equal to the excess of the adjusted cost base of the loan over the greater of the fair market value of the loan and the fair market value of the shares received as consideration for the disposition. ii) The capital loss will be deemed to be nil pursuant to subparagraph 40(2)(g)(ii) of the Act. iii) The opening cost to Parent of the additional shares of Subsidiary will be equal to the lesser of the fair market value of the loan for which they were issued and the fair market value of the shares received. iv) The provisions of subsection 85(4) of the Act will apply to add the amount of Parent's capital loss on the disposition to the adjusted cost base of Parent's shares of Subsidiary. ...

If the proceeds received by the RRSP are less than the fair market value of the property, an amount equal to the difference between the fair market value and the consideration received by the RRSP will be taxed in the annuitant's hands. ...

The foregoing represents the Department's present understanding of the law and does not take into consideration the recent decision of the Supreme Court of Canada in the Glenn Williams case (92 DTC 6320). ...

Consideration received includes preferred shares of Newco with a PUC of $3.5 M, redeemable at $3,500,500, ACB $500. ...

We would not view it as "a logical absurdity" that subsection 55(2) should apply to a series of transactions in which a non-share property of a corporation is transferred to another corporation for share consideration which is then converted into inter-corporate dividends. ...

Requests made on behalf of specific taxpayers pursuant to paragraph 85(7.1)(b) should be directed to the relevant district office for consideration. ...

Taxpayer A would be considered to have conferred a benefit on Canco, to the extent that the fair market value of the transferred property exceeds the greater of the fair market value of the consideration received and the elected amounts determined without reference to paragraph 85(1)(e.2) of the Act. ...

Although you have not requested our comments thereon, some of the provisions of subsections 15(1), 56(2) and 245(2) may apply as a result of this type of transaction if the value of the shares received as consideration by Canco does not equal the value of the shares transferred. ...