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Other Considerations: In addition to the rules respecting qualified investments for RRSP's, certain registration requirements will affect the manner in which the annuity purchase is handled. ...

MNR [1988] 1 CTC 2422 at 2424]: An agreement between a company and its shareholders is not formed by a mere fleeting thought in the mind of the individual who controls it. 24(1)     21(1)(b) Evidentiary Considerations 24(1) 24(1)          21(1)(b) If you have any questions in respect of this matter, we should be please to discuss them with you. for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch ...

INCOME TAX CONSIDERATIONS A. Overview There are two principal issues that arise under the Act with respect to the involvement by a participant in the FIT/MicroFIT Program or in the Net Metering Program: (a) whether amounts or credits earned by a participant for electricity supplied by the participant to the provincial electricity grid are required to be included in computing the income of the participant under the Act; and (b) whether the participant is entitled to claim capital cost allowance (“CCA”) with respect to the renewable energy equipment acquired by the participant and, if so, whether the specified energy property rules would apply to limit the amount of CCA the participant is entitled to claim. ...

INCOME TAX CONSIDERATIONS There are two principal issues that arise under the Act with respect to the involvement by a participant in the Nova Scotia Enhanced Net Metering Program: (a) whether amounts or credits earned by a participant for electricity supplied by the participant to the provincial electricity grid are required to be included in computing the income of the participant under the Act; and (b) whether the participant is entitled to claim capital cost allowance (“CCA”) with respect to the renewable energy equipment acquired by the participant. ...

Paragraph 74.4(3)(a) provides as follows: (a) in the case of a transfer of property to a corporation, the amount, if any, by which the fair market value of the property at the time of the transfer exceeds the total of (i) the fair market value, at the time of the transfer, of the consideration (other than consideration that is excluded consideration at the particular time) received by the transferor for the property, and (ii) the fair market value, at the time of receipt, of any consideration (other than consideration that is excluded consideration at the particular time) received by the transferor at or before the particular time from the corporation or from a person with whom the transferor deals at arm’s length, in exchange for excluded consideration previously received by the transferor as consideration for the property or for excluded consideration substituted for such consideration; Subparagraph 74.4(3)(a)(i) takes into account consideration received on the initial transfer and, therefore, would not apply to an exchange of shares under a subsequent refreeze. Subparagraph 74.4(3)(a)(ii) would also not apply as the shares received on the refreeze constitute “excluded consideration”, as that term is defined in subsection 74.4(1). ... Subparagraph 74.4(3)(a)(ii) will reduce the outstanding amount by the fair market value, at the time of receipt, of consideration from the corporation in exchange for excluded consideration previously received by the transferor as consideration for the property or for excluded consideration substituted for such consideration. ...

Our understanding of the major components of the arrangements under consideration is as follows: 1. ... Where consideration is given for a share purchase warrant that constitutes a FTS, we have generally accepted that renunciations may be made by a PBC to the person who gave the consideration for, and acquired, the warrant up to the amount of such consideration. ... Therefore, where the terms of the warrant require additional consideration to be paid upon the exercise thereof to acquire actual shares of the PBC, it is also our position that renunciations in respect of qualifying expenses may potentially be made by a PBC up to the amount of such consideration (with the "24 month" period, in which the PBC is to incur the qualifying expenses in relation to the consideration given for the shares, generally not viewed as commencing until the warrant is exercised). ...

In the CCRA's view, the entire amount of the mortgage assumed is assumed as consideration for the transferred property. ... The consideration given upon the redemption is the assumption of the $700 mortgage. In the CCRA's view, the entire amount of the mortgage assumed is assumed as consideration for the transferred property. ...

Restrictive Covenants In very general terms, the rules concerning restrictive covenants are divided into two categories, the first being where there is no consideration for the restrictive covenant, and the second being where there is consideration. The rules applicable to situations where there is no consideration are generally more widely applicable. ... Accordingly, it would be common in drafting a restrictive covenant to state that the consideration is the sum of $1 and other valuable consideration etc. ...

Where the purchaser assumes contingent liabilities, e.g., warranty reserves, as consideration for assets (i.e., the amount of other consideration is less than what would otherwise have been received by the vendors had the contingent liabilities not been assumed by the purchaser), we believe that the following results arise:? ... In a situation where the contingent liabilities are assumed as part of an ongoing business, e.g., unidentified future severance payments, and not as consideration for any of the assets (i.e., the amount of other consideration received by the vendor is not affected by the assumption), we believe the following results arise:? ... Our response to this question was that the issue was under consideration. ...

The excess of the non-share consideration over the fair market value of a transferred property in such a situation should be considered to be non-share consideration of another property. ... However, if the consideration for all properties transferred is taken into account, no benefit may be considered to have been conferred. ... The consideration received is a note for $20,000 and shares. Section 85 envisages a property by property transfer. ...