Search - consideration

No, but the PBC cannot renounce CEE or CDE in excess of the consideration received from the flow-through shareholders for the flow-through shares. ... The amount of renounced expenses cannot be less than the consideration paid for the particular shares or rights to be issued under the agreement. ... However, the PBC's taxable capital employed in Canada at the time the consideration for the shares was given must not be more than $15 million. ...

Reasons: Having given consideration to the purpose of the Branch Tax and noting that a non-resident corporation that is a member of a top-tier partnership would be subject to Branch Tax in respect of its share of taxable income earned through a lower-tier partnership, it is reasonable to consider that the corporation will also be considered to be a member of a lower-tier partnership for the purpose of subsection 808(4) of the Regulations. ... Noting that the non-resident corporate partner would be subject to tax under Part XIV of the Act (“Branch Tax”) in respect of its share of taxable income earned through Partnership B, you asked whether it could look through Partnership A to take into consideration Partnership B’s properties when calculating its Allowance as provided for in paragraph 219(1)(j) of the Act and prescribed by section 808 of the Income Tax Regulations (the “Regulations”). ... In the scenario you presented, the non-resident corporate partner may, when calculating its Allowance as provided for in paragraph 219(1)(j) of the Act and as prescribed by section 808 of the Regulations, “look through” Partnership A to take into consideration Partnership B’s properties. ...

Our response below does not take into consideration the consequences, if any, of draft legislation including legislative proposals dated February 27, 2004, issued by the Department of Finance. ... The consideration paid by the borrower is in the form of a right provided to the lender to reacquire an equal number of identical securities for no consideration other than the extinguishment of the right. ... When the right to acquire securities given by the borrower to the lender is settled, the borrower will purchase from a third party the number of securities it originally borrowed (the "new securities") and dispose of them to the lender in consideration for the settlement of its obligation under the right. ...

In consideration for this transfer, Spouse B transfers property #2 with an ACB of $200 a FMV of $400 to Spouse A (transfer #2). ... Transfer #3 On the transfer of property #2 by Spouse A to her corporation, the shares and any other consideration (the "consideration") that Spouse A received on the transfer would be "property substituted" for property #2 and subsection 74.1(1) of the Act and subsection 74.1(2) of the Act would apply to attribute the income, capital gains, etc. relating to the consideration to Spouse B. ...

A Co will acquire all of the shares of Newlossco1 and the Newlossco1 Note A from Parentco for FMV consideration consisting of cash. The FMV will reflect, inter alia, interest rates, statutory income tax rates, the estimated time of utilization of the non-capital losses of Newlossco1 and other considerations. C Co will acquire all of the shares of each of Newlossco2 and Newlossco3, as well as the Newlossco2 Note A and the Newlossco3 Note A, from Parentco for FMV consideration consisting of cash. ...

We understand that the deceased taxpayer sold her entire farming operation to her daughter and as part of the sale, cattle and feed inventory was transferred to the daughter in consideration of a promissory note in the amount of $XXXXXXXXXX. ... On the contrary both the Bill of Sale and the Purchase and Sale Agreement refer to the promissory note as the consideration given for the transfer of the inventory. ... As the promissory note was received as consideration for the inventory transferred and accepted as absolute payment, there is no amount owing on the sale of the cattle and feed inventory. ...

X for cash consideration by a purchaser corporation (the “Parent”). Target is then wound up and the Parent wishes to “bump” the shares of Newco acquired on the wind-up. ... Newco will acquire the Property from Target during the course of the preliminary transactions, and will issue shares to Target in consideration for those assets. ... Issue You request our confirmation that, for purposes of clause 88(1)(c)(vi)(B) of the Act, the Property transferred to Newco by Target would not be property acquired by Newco in substitution for the Newco shares issued to Target in consideration for such property. ...

The Plaintiff alleged in the claim that the Defendant issued malicious and false opinions which resulted in the Plaintiff being eliminated from consideration for employment by another group of employers. ... The most common considerations can be the extent that a settlement can be regarded as being in the nature of employment income or a retiring allowance, which are taxable, or non-taxable personal damages. ... However, as indicated above, the reasonableness of an allocation within a settlement is also a consideration. ...

The consideration paid to Vendor includes cash and treasury shares of Canco. ... In the context of a winding-up, you have indicated that Canco would be entitled to bump the cost of any eligible property of Targetco since the shares of Canco issued to the vendor as consideration for the Targetco shares would not be substituted property within the meaning of proposed paragraph 88(1)(c.3) by virtue of the exception for parent company shares found in subparagraph 88(1)(c.3)(i). ... Your concern is based on the premise that, for the purposes of proposed paragraph 88(1)(c.3), the shares of Amalco which are acquired by Vendor on the amalgamation will be wholly or partly attributable to the bumped property and since Amalco is a new corporation these shares will not qualify for the exception for parent company shares paid as consideration for the shares of the subsidiary. ...

An exception to this rule occurs where fair market value consideration is paid by the spouse. A transfer for fair market value consideration is not considered to have taken place for purposes of the Act unless a number of conditions are met. As noted in paragraph 21 of Interpretation Bulletin IT-511R we state: "Pursuant to subsection 74.5(1), income or loss from transferred property or any taxable capital gains or allowable capital losses on the disposition of the transferred property does not attribute to the transferor in a particular year where (a)the sale or other transfer is made to the transferor's spouse for consideration equal to fair market value of the transferred property, (b)the sale price or other consideration for the transfer is (i)fully paid by the transferee in cash or kind (and not from property furnished by the transferor) or (ii)satisfied in whole or in part by indebtedness on which interest is charged at a rate not less than the lesser (A)the prescribed rate and (B)the rate that would be agreed upon between arm's length parties under similar circumstances at the time the indebtedness is incurred, if all such interest is paid no later than 30 days after the end of each calendar year in which it becomes payable, and (c)the transferor elects not to have the provisions of subsection 73(1) apply (i.e. any gains or loss is realized at the time of transfer). ...