Search - consideration

Principal Issues: Whether an unfunded supplemental pension for an employee is an 1) SDA, 2) RCA, or 3) 6(3)(e) payment in consideration of covenants not to work for competitors. ... Although employee covenants not to compete while employed or for two years after termination, this condition is relevant not only to the right to pension payments but also to continued employment; consideration for such covenant is tied integrally to all terms of employment and not solely to the periodic payments to be received after retirement or termination. ...

The determination of whether or not an object has become a fixture requires consideration of the degree of annexation and the purpose of annexation. ... In summary, for purposes of both the Income Tax Act and the Convention, as suggested above, the determination of whether or not an object has become a fixture to the land or building requires consideration of the degree of annexation and the purpose of annexation. ...

We have taken into consideration your comments but, after our review of information we received on the XXXXXXXXXX spin-off, we can confirm that the tax consequences for Canadian shareholders are identical to those in other spin-offs we have looked at. ... However, no other remission orders have been granted because the spin-offs under consideration were voluntary, as was the XXXXXXXXXX spin-off described above. ...

The remaining $2 dollars of foreign tax paid by Canco in respect of the profits of LLC would be taken into consideration for the purposes of computing any future deduction under 113(1)(c) when dividends are again distributed to Canco out of the taxable surplus by LLC. ... More complex structures involving tiers of foreign affiliates, would have to be assessed on their own merits.As a final comment, we note that since LLC is not a controlled foreign affiliate of Canco, in the above circumstances consideration should be given to whether Canco would be subject to the provisions of section 94.1 of the Act as a consequence of holding an interest in LLC. ...

In our view, the payment so received by the shareholder would be consideration for his or her right to compete. ... Moreover, this case is currently under appeal Finally, we wish to stress to you that under section 68 of the Act the parties must make a reasonable allocation of the consideration among the assets sold. ...

Est-ce que la perte pourrait être reconnue si une partie du salaire de l'administrateur était, disons 1 000 $, versée en considération de sa responsabilité solidaire? ... Question 3 Est-ce que la perte pourrait être reconnue si l'administrateur recevait du salaire en considération de sa responsabilité solidaire? ...

In addition, the definition of flow-through share indicates the corporation must incur qualifying expenses in an amount "not less than" the relevant consideration. ... X pays $100 as sole consideration for the issuance by Corporation A of a flow-through share;- not enter into any other such “agreement in writing”;- incur $125 of “Canadian exploration expense” (“CEE”; within the meaning assigned that term in subsection 66.1(1) of the Act) during the 24 month period commencing February 1, 1999 (being $25 from its own resources and $100 from the above issuance of flow-through shares);- claim $25 of METC but have no other “assistance” [within the meaning assigned that term in subsection 66(15) of the Act] for the purposes of paragraph 66(12.6)(a) of the Act with respect to the $125 of CEE. ...

You presented a factual situation for our consideration. Since the situation you presented is an actual fact situation, we are not able to provide any specific comments other than by way of an advance income tax ruling. ... As we stated in our telephone conversation of October 16, 1998 (Brooks/XXXXXXXXXX), our comments do not take into consideration the actual trust arrangement nor the historical facts of your specific situation. ...

In 1996, the individual transferred a remainder interest in the real property to his adult children for nominal consideration. ... Further, we are assuming that, in both scenarios, the real property under consideration consists of both a land component and a depreciable property component. ...

., pawnbroker fees and sale of used goods, is likely the most important factor, the “purpose” test may require consideration of other factors. ... If you have a specific situation in mind, you should submit all of the facts to the applicable local tax services for their consideration. ...