Search - consideration

Clauses 6202.1(1) (a) (iii) (A) and (9) provide that the new share will not be a prescribed share under subparagraph 6202.1(1) (a) (iii) of the Regulations if, inter alia, the new share is convertible or exchangeable only into another share of the corporation that, if issued, would not be a prescribed share ("non-prescribed share") and, if all the consideration receivable by the holder on the conversion or exchange of the new share is I imited to such a non-prescribed share receivable on the conversion or exchange. ... There must be some sort of benefit or payment etc. conveyed to the shareholder on the conversion that may reasonably be considered to be a repayment or return by the corporation (or a specified person) of all or part of the consideration for which the share was issued. 2. ... Where a person agrees to acquire flow-through shares and non flow-through shares from a corporation for fair market value consideration and the consideration for which flow-through shares are to be issued is determined within 60 days of entering into the flow-through share agreement, and the terms of the flow-through shares provide for their conversion into additional non flow-through shares of the corporation on a fair market value basis, it is our view that paragraph 6202.l(2)(a) of the Regulations will not apply to cause the flow-through shares to be prescribed shares. ...

To crystallize a capital gains exemption, the individual sells his common shares to Opco for cancellation and, in consideration, Opco issues him shares of another class of its capital stock whose stated capital for corporate purposes and fair market value are $600,000. ... (i) Is the individual deemed to have received a $100,000 dividend under subsection 84(1) of the Act, since subsection 85(2.1) of the Act reduces the paid-up capital of shares issued in consideration of a $100,000 amount? ... It is our opinion that, in the example you submitted to us, subsection 84(1) applies to deem the individual to have received a $100,000 dividend at the time the shares of another class were issued in consideration for the cancelled common shares. ...

In the Plan which you described in your letter of September 20, 1984, each Member's consideration is seen to be his/her undertaking to forgo a certain value of employee benefits and/or salary for the next Plan Year. Paragraph 5 of interpretation bulletin 339R indicates that the agreed consideration should relate closely to the coverage provided, being based on some method of computation involving actuarial or similar studies. ... In our opinion, the Member's consideration cannot be said to be based on a computation involving actuarial or similar studies with the result that neither the Plan nor any of the individual agreements contemplated therein qualify as a private health services plan. ...

X. utilizes Section 85 on the transfer and as consideration received: Shareholder's loan account, without interest $300,000 Preference shares, without cost base 400,000 Opco has experienced financial difficulties recently. ... The particular right to receive an amount was neither acquired for the purpose of gaining or producing income from a business or property nor as consideration for the disposition of capital property to a person with whom the taxpayer was dealing at arm's length. ... If the consideration included a non-interest bearing "debt", subparagraph 40(2)(g)(ii) of the Act would still be relevant. ...

Opco issues 300 Class B Common Shares to the shareholder for consideration of $1. 3. ... As consideration for the shares, the shareholder will receive one additional common share of Newco which will have an adjusted cost base and paid-up capital identical to that of the shares being transferred. ... In step 3 above, one additional common share is issued as consideration for the Class A Common Shares. ...

The revised IT's may not contain the administrative practice regarding the receipt of non-share consideration of less than $200 instead of a fraction of a share as described in section 1.2 of the course material. ... Under section 2.2 of the course material and lesson plan, we feel that the statement "Unlike sections 51 and 85.1, non-share consideration, or boot, can also be received" is not totally correct in that subsection 85.1(3) permits the receipt of non-share consideration. ... On page 7.2, paragraph 4, please refer to our comment 1 with respect to the administrative practice concerning the receipt of non-share consideration of less than $200 instead of a fraction of a share. 9. ...

The general rule, under subsection 148(8) of the Act, provides that where a policyholder transfers an interest in the policy to the policyholder’s child for no consideration and a child of the policyholder or a child of the transferee is the person who is insured under the contract, the policyholder shall be deemed to have disposed of his or her interest in the policy for proceeds of the disposition equal to the adjusted cost basis (ACB) of the policy immediately before the transfer. ... Child B dies and the policy remains in force, with B’s Spouse being the sole life insured. (1) Subsequent to Child B’s death, Parent A transfers the Policy to B’s Spouse for no consideration. ... The first condition is found in paragraph 148(8)(a) of the Act, which requires that the interest of a policyholder in a policy be transferred to a “child” (as defined in subsections 70(10) and 252(1) of the Act) of the policyholder for no consideration. ...

Reasons: QR is defined in subsection 125.7(1) of the Act to mean “the inflow of cash, receivables or other consideration arising in the course of the ordinary activities of the eligible entity — generally from the sale of goods, the rendering of services and the use by others of resources of the eligible entity — in Canada in the particular period”, subject to certain exclusions or exceptions. ... As noted in the definition, in determining whether an eligible entity has qualifying revenue, two tests must be satisfied: there must be an inflow of cash, receivables, or other consideration (the “Inflow Test”), and the inflow must arise in the course of the ordinary activities of the eligible entity generally from the sale of goods, the rendering of services, and the use by others of resources of the eligible entity (the “Activities Test”). ... Rather, in such a scenario, we concur with your position that it is solely the Management Fee paid to the eligible entity which is an inflow of cash, receivables, or other consideration arising in the course of the ordinary activities of the eligible entity from the rendering of services. ...

(ci-après, "Considération FNLR1") d'un montant qui correspondra à 50% des Frais nets de location reportés immédiatement avant le moment de l'attribution. ... Paiement d'une partie du Billet2 payable par NOUCO à OPCO NOUCO prendra aussi en charge 50 % des dettes restantes de OPCO immédiatement avant la troisième série de transferts, autres que les dettes comprises dans la Considération FNLR1, la Considération DPC1-NOUCO, la Considération FNLR2 et la Considération DPC1-GESTCO1. ... Paiement d'une partie du Billet2 payable par GESTCO1 à OPCO GESTCO1 prendra en charge 50 % des dettes restantes de OPCO immédiatement avant la troisième série de transferts, autres que les dettes comprises dans la Considération FNLR1, la Considération DPC1-NOUCO, la Considération FNLR2 et la Considération DPC1-GESTCO1. ...

As sole consideration for the transfer, Spouse 1 will receive XXXXXXXXXX Class I preferred shares (non-voting) of Opco 2 redeemable/retractable at $XXXXXXXXXX/share and having an aggregate FMV equal to the aggregate FMV of the Opco 1 shares so transferred. ... As sole consideration for the transfer, Opco 1 will receive XXXXXXXXXX Class I preferred shares (non-voting) in Holdco 1 redeemable/retractable at $XXXXXXXXXX/share and having an aggregate FMV equal to the aggregate FMV of the XXXXXXXXXX so transferred. ... Opco 2 will assign the receivable from Promissory Note 1 which was issued to Opco 2 by Opco 1 in Paragraph 27 to Holdco 1 in consideration for the partial set-off of Promissory Note 4 (owed by Opco 2 to Holdco 1). 33. ...