Search - consideration

XXXXXXXXXX will have the right to acquire XXXXXXXXXX interest in the Partnership at its fair market value at the time of winding up the Partnership and as consideration will issue such number of XXXXXXXXXX shares equal to the value of XXXXXXXXXX interest in the Partnership. In the event that XXXXXXXXXX does not exercise its right to acquire XXXXXXXXXX interest in the Partnership, XXXXXXXXXX will have the right to request that XXXXXXXXXX acquire its interest in the Partnership at its fair market value at the time of winding up the Partnership and XXXXXXXXXX will issue as consideration, such number of XXXXXXXXXX shares equal to the value of XXXXXXXXXX interest in the Partnership. ...

Kauppinen June 29, 1999 Dear XXXXXXXXXX: Re: Transfer of RRSP funds to a Charitable Remainder Trust ("CRT") This is in reply to your letter dated January 26, 1999 wherein you requested our opinion as to whether amounts earned on accumulated contributions to an RRSP could be transferred, for no consideration, to a CRT without immediate adverse income tax consequences. ... We suggest that you write to the Department of Finance since that Department is responsible for the consideration of tax policy issues of this nature. ...

" In ITTN-44, the CRA commented that, in the context of estate freezes of private corporations: “Provided that the owners of all the shares of the corporation act in a manner consistent with the assumption that no value attaches to the voting rights, and the rights are eventually extinguished for no consideration, the CRA will generally not attribute value to the rights. If the holder of the rights uses them to run the corporation in conflict with the common shareholders or seeks or is offered consideration for them, it would be difficult for the CRA to ignore this evidence of value.” ...

We concur that, in Situation 1, the acquisition of a beneficial interest in the trust by the Contributor at the time of settlement would not disqualify the trust as a personal trust, because there was no consideration given by the Contributor for this interest in the trust.  ... We also concur that, in Situation 2, the acquisition of a beneficial interest in the trust by the settlor at the time of settlement would not disqualify the trust as a personal trust, because the definition of a personal trust includes a provision which deems the settlor to have acquired his beneficial interest for no consideration.  ...

Where the shares are converted to another class of shares and the provision of subsection 86(1) of the Act apply to the shareholder, and the shareholder has not received any non- share consideration, we would expect the interest expense on his debt to continue to be deductible. However, if the shareholder receives non-share consideration, the deductible interest expense would be reduced accordingly. ...

We cannot express an opinion as to whether or, if so, when subsection 115(4) applies in the particular case under consideration by you as such an opinion can be formulated only after determination and consideration of all the relevant facts. ...

As consideration, Opco receives shares of Bco having an aggregate redemption value equal to the fair market value ("FMV") of the transferred assets.  ... Immediately after the transfer, Bco sells the transferred assets to Aco for cash consideration equal to their FMV, which exceeds their ACB. ...

A gift, for purposes of sections 110.1 and 118.1 of the Income Tax Act (the Act) is a voluntary transfer of property without valuable consideration.  ... It would be a question of fact whether a   24(1)   presented to a donor sometime after the donation to the Crown of the donor's interest in the additional   24(1)   was a gift unrelated to the initial donation or delayed consideration for the initial payment in respect of the purchase from you of the interest in the additional  24(1) We trust our comments will be of assistance to you. ...

Adler (613) 957-8962 January 31, 1989 Dear Sir: Re: Retiring Allowances This to in reply to your letter of January 13, 1989 in which you raised three questions with respect to the retiring allowance rules under the Income Tax Act (the "Act"), and provided a hypothetical example for our consideration. ... We regret that we are not prepared to comment on your example since a decision regarding the character of a payment for income tax purposes must be based on the consideration of all relevant facts at the time. ...

`proceeds of disposition otherwise determined' means the amount of consideration paid or payable by a child on a transfer of farm property. In the case of a gift, there is no consideration paid or payable and, because of paragraph 73(3)(c) section 69 does not apply to otherwise determine the proceeds of disposition on such a transfer. ...