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.), the full amount of the premiums have the quality of income when received and therefore are included in income of the issuer under section 9 of the Act, as the premiums represent consideration for the issuance of the obligations and are received regardless of the period of time that the debt is outstanding. ... Ct.) at p. 1026 What the court is concerned with is the ascertainment of the taxpayer's income tax liability Thus the prime consideration, where there is a dispute about a system of accounting, is,in the first place, whether it is appropriate to the business to which it is applied and tells the truth about the taxpayer s income position and, if that condition is satisfied, whether there is any prohibition in the governing income tax law against its use. ...

As part of a negotiated property settlement it has been agreed that, by way of a series of transaction W's shares in Propco be acquired by H for cash consideration prior to a final divorce judgement. 4. ... It is contemplated that H will transfer all his preferred shares in Propco to Wco and will take back, as sole consideration, redeemable preferred shares with a redemption value equal to the fair market value of the Propco preferred shares and a paid-up capital as defined in paragraph 89(l)(c) of the Act equal to the paid-up capital of the Propco preferred shares. 6. ...

As a general rule, a gift, for the purposes of subsection 110(1) of the Act, is a voluntary transfer of property without valuable consideration. ... Accordingly, we confirm that the issuance of sponsor certificates, maps indicating the location of items sponsored to donors or markers identifying a sponsor's name, city or town, province or territory, as described in the National Capital Development Program Order Form would not be viewed as the receipt by a donor of valuable consideration. ...

7 October 2022 APFF Roundtable Q. 8, 2022-0942151C6 F- Surplus stripping Unedited CRA Tags 40(1)(a)(iii); 40(2)(a)(ii); 84.1(1), 84.1(2)(a.1)(i) and (ii); 245(2) and (4); 256(5.1) and (5.11) Principales Questions: (1) Whether the GAAR would apply to a series of transactions (“Series”) pursuant to which an individual (“Brother”) would transfer his shares in a Canadian-controlled private corporation (“Opco”) to a newly incorporated corporation (“Brother Holdco”) on rollover basis prior to Brother Holdco’s disposition of the Opco shares at their FMV (“Sale”) to a corporation newly incorporated by his sister (“Sister Holdco”) for a cash consideration of $200,000 and the balance of the sale price payable within a period of four years after the date of the Sale? ... Tel que le prévoit le paragraphe 256(5.11) L.I.R. ainsi que la jurisprudence applicable, tout facteur, tant contractuel, commercial, économique, moral que familial, peut être pris en considération afin de déterminer si une personne ou un groupe de personnes a une influence, directe ou indirecte, dont l’exercice entraînerait le contrôle de fait d’une société (« Influence »). ...

This publication also highlights factors that should be given consideration for particular types of businesses. ... There are other Canadian income tax considerations which should be addressed by USco. ...

Accordingly, any determination of whether section 9, paragraph 12(1)(x), subsection 56(2) or 246(1) of the Act apply to a particular Parentco/Subco arrangement involving life insurance policies can only be ascertained, on a case-by-case basis, after a comprehensive review and analysis of the relevant facts and agreements amongst the parties (including any valuation considerations, as applicable). ... Consequently, we remain of the view that any determination of whether section 9, paragraph 12(1)(x), or subsections 15(1), 56(2) or 246(1) of the Act apply to a particular shared-ownership arrangement involving life insurance policies and their respective premium payments can only be ascertained, on a case-by-case basis, after a comprehensive review and analysis of the relevant facts and agreements amongst the parties (including any valuation considerations, as applicable). ...

The Corporation would typically issue payment dependent unsecured interest bearing notes to individual investors (Lenders) for cash consideration. ... Under subparagraph 40(2)(g)(ii) of the Act, a taxpayer's loss arising from the disposition of a debt is nil unless (i) the debt had been acquired by the taxpayer for the purpose of gaining or producing income from a business or property; or (ii) acquired as consideration from the disposition of capital property in an arm's length transaction. ...

(emphasis added) Subsection 256(5.11) of the Act further provides: For the purposes of the Act, the determination of whether a taxpayer has, in respect of a corporation, any direct or indirect influence that, if exercised, would result in control in fact of the corporation, shall (a) take into consideration all factors that are relevant in the circumstances; and (b) not be limited to, and the relevant factors need not include, whether the taxpayer has a legally enforceable right or ability to effect a change in the board of directors of the corporation, or its powers, or to exercise influence over the shareholder or shareholders who have that right or ability. ... The relative portion of the financing of the purchaser corporation represented by the promissory note, the terms of repayment, any obligations/guarantees relating to repayment, and the access that the purchaser corporation has to alternative financing in the event a demand for payment is made, would, among other possible factors, be taken into consideration in determining if such influence exists. ...

As sole consideration for the transfer, New XXXXXXXXXX will issue the appropriate fraction of a New XXXXXXXXXX Voting Share for each Class XXXXXXXXXX Reorganization Share of New XXXXXXXXXX so transferred. ... The Amalgamated XXXXXXXXXX Voting Shares will be convertible at any time at the option of the holder into Amalgamated XXXXXXXXXX Voting Shares. 74.Upon the amalgamation of XXXXXXXXXX and New XXXXXXXXXX, each shareholder (other than a dissenting shareholder and any predecessor) will have disposed of: (a) his New XXXXXXXXXX Voting Shares and received no consideration other than Amalgamated XXXXXXXXXX Voting Shares and an amount in cash not to exceed $200 in lieu of a fraction of a share; (b)his New XXXXXXXXXX Voting Shares and received no consideration other than Amalgamated XXXXXXXXXX Voting Shares and an amount in cash not to exceed $200 in lieu of a fraction of a share; (c) his XXXXXXXXXX Voting Shares and received no consideration other than Amalgamated XXXXXXXXXX Voting Shares or Amalgamated XXXXXXXXXX Voting Shares and an amount in cash not to exceed $200 in lieu of a fraction of a share; and (d)his XXXXXXXXXX Voting Shares and received no consideration other than Amalgamated XXXXXXXXXX Voting Shares and an amount in cash not to exceed $200 in lieu of a fraction of a share. ...

Parent will transfer all of the Sub1 Special Shares that it holds to Newco Sub in consideration for XXXXXXXXXX Newco Sub Common Shares. ... Parent will transfer to Newco Sub: (a) the XXXXXXXXXX-Sub1 Debt by way of a capital contribution; (b) cash in consideration for a number of additional Newco Sub Common Shares; and (c) all of the XXXXXXXXXX Common Shares that it holds in consideration for a number of additional Newco Sub Common Shares. ... Each: (a) XXXXXXXXXX Participant will transfer each Parent XXXXXXXXXX Special Share that it holds to Newco in consideration for one Newco XXXXXXXXXX Share; and (b) XXXXXXXXXX Participant will transfer each Parent XXXXXXXXXX Special Share that it holds to Newco in consideration for one Newco XXXXXXXXXX Share. ...