Search - consideration

At the time of the initial payment of benefits by the insurer, XXXX there was no consideration given to whether the amounts would be exempt from tax under the provisions of ITAR 19 as it was presumed that the disabling "event" took place around the time of his retirement after 1973. ... XXXX requests consideration of administrative relief by allowing him to remove the over-contributions without tax consequences. ... As discussed with Francine Ouellette of your staff, had the case involved solely a request for remission we would have normally forwarded the request directly to the Remission Committee; however, since the case also involves reassessments and administrative relief considerations, it is felt that the total relief package should be coordinated through your Division in order to limit the duplication of effort. ...

Ordinarily the source of the shareholder's funds would not be a consideration. ... In the case of an interest free loan to the shareholder from an operating company, it appears section 80.4 would include an interest benefit in the shareholder's income, in which case the shareholder's source of funds would not be a consideration. 2. ... The Queen 90 DTC 6322 that in determining the amount of the benefit the shareholder's interest free loan to the corporation to enable it to purchase the property should be taken into consideration. ...

Secondly, you enquired as to whether the application of subsection 69(11) to the situation described herein is precluded because the fair market value of the shares of X Co issued as consideration for the property as equal to the fair market value of the property at the time of the transfer of the property to X Co. In our view, the application of subsection 69(11) to a transfer is not precluded because the transfer is for fair market value consideration. Subsection 69(11) may apply where the proceeds of disposition of, as opposed to the value of the consideration for, the transferred property is less than the fair market value of such property. ...

As consideration for the surrender of his right under the agreement, the employee receives an amount equal to the excess of the fair market value of the share at that time over the exercise price. It is your view that the following income tax consequences would result: (A) The employee will be deemed to have received a benefit equal to the value of the consideration for the disposition of his right under the agreement. ... In our view, the employee in the circumstances set out above would be deemed to have received a benefit equal to the value of the consideration received which would be included in his income under paragraph 7(1)(b) of the Act unless, having regard to the terms of the agreement and the surrounding circumstances, it was apparent that there was never any intention to have shares issued and the cash payment was merely a means of compensating the employee with a "phantom stock option plan". ...

You provided the following facts for our consideration: 1. Canco is a Canadian company and is a subsidiary of US co (a U.S. public company). 2. ... US co has extended an offer to the holders of the outstanding stock options to pay cash as consideration for the surrender of the stock option rights and that this offer would not be made under the terms of the stock option plan. ... Based upon the above, it is our view that an amount received by an employee under US co's offer to acquire the outstanding stock option rights of the employee for cash consideration would be deemed to be a benefit from employment pursuant to paragraph 7(1)(b) of the Income Tax Act and not as remuneration under paragraph 5(1)(a) of the Income Tax Act. ...

Principal Issues: Whether an in-kind capital distribution of FA shares on shares of another FA to a Canco may give rise to a PUC reinstatement under subsection 212.3(9), while the shares so received by the Canco are subsequently contributed back to a third FA of the group in consideration for shares of that third FA such that subsection 212.3(2) does not apply to that investment in application of subparagraph 212.3(18)(b)(ii)? ... Using the proceeds of the Daylight Loan, New FA2 subscribes for 100 common shares of New FA3 for $100, such that New FA3 is at that time a wholly-owned subsidiary of New FA2. iv) FA1 acquires the common shares of New FA3 from New FA2 in consideration for a promissory note in the amount of $100. v) FA1 makes an in-kind return of capital on its common shares held by Canco by transferring to Canco the common shares of New FA3. This acquisition of the New FA3 shares is an investment by Canco described in paragraph 212.3(10)(a) that is not subject to subsection 212.3(2) in application of subparagraph 212.3(18)(b)(vii). vi) Canco contributes the common shares of New FA3 to New FA2 in consideration for additional common shares of New FA2, such that subsection 85.1(3) applies to this transfer of shares. ...

The Newco Preferred Shares will have the following attributes: (a) Newco Class A Preferred Shares (i) non-voting; (ii) non-participating; (iii) redeemable at the option of the issuer and retractable at the option of the holder for a redemption price equal to the fair market value of the consideration for which the shares are issued. ... (b) Newco Class B Preferred Shares (i) non-voting; (ii) non-participating; (iii) redeemable at the option of the issuer and retractable at the option of the holder for a redemption price equal to the fair market value of the consideration for which the shares are issued. ... (c) Newco Class C Preferred Shares (i) voting; (ii) non-participating; (iii) redeemable at the option of the issuer and retractable at the option of the holder for a redemption price equal to the fair market value of the consideration for which the shares are issued. ...

3 December 2024 CTF Roundtable Q. 1, 2024-1038181C6- Safe Income and Preferred Shares Principal Issues: Does the position set out in the Safe Income Paper regarding the allocation of safe income to preferred shares acquired as consideration for the transfer of property on a tax-deferred basis to the corporation apply where the preferred shares are acquired in exchange for common shares? ... Reasons: The position set out in the Safe Income Paper is only applicable to, specifically, the transfer of property other than shares. 2024 CTF Annual Tax Conference CRA Round Table Question 1: Safe Income and Preferred Shares The Canada Revenue Agency (CRA) has considered the allocation of safe income to preferred shares where a shareholder acquires preferred shares in a corporation as consideration for the transfer of a property (other than shares) on a tax-deferred basis to the corporation. ... CRA Response As part of the Safe Income Paper, the CRA did state that where a shareholder acquires preferred shares of a corporation as consideration for a transfer of a property on a tax-deferred basis to the corporation, the accrued gain on the property at the time of the transfer and that would subsequently be realized by the corporation would indeed be viewed as contributing to the gain on the preferred shares and would be included in the safe income of the preferred shares. ...

The Plaintiff has reached a settlement with the Defendants with respect to the claims, for periodic payments (the "Structure Payments") and certain non-structure consideration subject to receipt of a favourable income tax ruling with respect to the Structure Payments. 6. The terms of the Settlement Agreement provide, among other consideration, for the payment to the Plaintiff of lifetime monthly payments of $XXXXXXXXXX, without indexation, commencing on XXXXXXXXXX (which monthly payments are guaranteed to be made through XXXXXXXXXX, regardless of whether the Plaintiff is alive), plus lump sum payments of $XXXXXXXXXX due on XXXXXXXXXX, respectively. 7. ... In consideration of the Insurer making the Structured Payments (and the other defendants either directly or through their insurers, providing certain non-structure consideration called for the Settlement Agreement and Release) the Plaintiff has agreed to settle her claims against the Defendants. 8. ...

The Oxford English Dictionary defines a sale as an "exchange of a commodity for money or other consideration."" Similarly, Black's Law Dictionary refers to a "transfer of property … for consideration." ... " Accordingly, it is our view that the FCA decision in Sommerer does stand for the general proposition that where property is transferred to a trust by a beneficiary of the trust in return for consideration that constitutes a fair market value, subsection 75(2) will not apply to attribute income in respect of that property to that beneficiary. ...