Search - consideration

Consideration of requests of this nature involves an extensive and fully objective review of the facts of the particular situation by senior departmental officials in Head Office. ... I wish to assure you that she will receive the outmost consideration possible in the resolution of her case, Yours sincerely, EM/cl Otto Jelinek April 27, 1990 Mary Evans- 957-9229 MD/jp(Min42-90078019)8 May 14, 1990 D.M.'s Office ...

Specifically, you asked the Department to confirm that subparagraph 40(2)(g)(ii) of the Act would not be applied to deny a capital loss in the following circumstances: * the taxpayer received inadequate consideration in return for guaranteeing a debt of the corporation. * the loss on the guarantee occurred once the taxpayer was no longer a shareholder. * the taxpayer was a shareholder at the time the debt of the corporation was guaranteed. * all the other conditions outlined in paragraph 6 of IT-239R2 are met. ... It is our view the same reasoning would apply in respect of the application of subparagraph 40(2)(g)(ii) of the Act in respect of a loss on a guarantee that was given for less than adequate consideration. ...

A vendor (the “Vendor”) sells all of its shares of a corporation (the “Target”) to a purchaser corporation (the “Purchaser”) in consideration for, exclusively, shares of the Purchaser. The agreement governing the purchase and sale of the Target shares (the “Agreement”) requires the Vendor to place some of the share consideration received from the Purchaser in escrow (the “Escrow Shares”) pending any downward post-closing adjustments to the purchase price. ...

The payment was a gift, given freely with no consideration, to help the taxpayer who was XXXXXXXXXX. ... The term "gift" is not defined in the Act, but is generally regarded as a voluntary transfer of property without consideration. ... In the case of The Queen v Blanchard [95 DTC 5479], the FCA found that a payment arising from the satisfaction of an obligation that arose under an agreement was received as "consideration or partial consideration" for entering into the contract of employment. ...

In the event no CCA or CEC deduction has been claimed, a taxpayer would normally elect at an amount in excess of the UCC or 4/3 the CEC (ie. an amount equal to the designated amount under 110.6(19) of the Act), as the case may be, and would take back non-share consideration equal to that elected amount. ... Shortly after the CGD election, the taxpayer transfers the asset to his corporation, elects under subsection 85(1) at $30,000, and takes back 1 share with nominal value and non-share consideration equal to $30,000. ... Example 2: Lets now use the same facts as example 1, however, the taxpayer elects under subsection 85(1) at 4/3 of his CEC balance to avoid any immediate subsection 14(1) implications, and takes back non-share consideration of $18,666.66. ...

As a consequence, this disposition XXXXXXXXXX in a taxable transaction where the proceeds of disposition will be $XXXXXXXXXX. 11.The shares of XXXXXXXXXX, as described in paragraph 10 above, were acquired by XXXXXXXXXX in consideration for common shares of XXXXXXXXXX elected, pursuant to subsection 85(1) of the Act, that the proceeds of disposition of the XXXXXXXXXX properties was XXXXXXXXXX. 12.On XXXXXXXXXX transferred the following assets to its wholly-owned subsidiary, XXXXXXXXXX FMV XXXXXXXXXX 13.As consideration for the assets transferred, XXXXXXXXXX received XXXXXXXXXX common shares of XXXXXXXXXX No election XXXXXXXXXX filed pursuant to subsection 85(1) of the Act with respect to this transfer such that the transfer XXXXXXXXXX fully taxable transaction for the purpose of the Act. 14.The XXXXXXXXXX common shares have a PUC, ACB and fair market value of $XXXXXXXXXX and represent approximately XXXXXXXXXX% of the total assets of XXXXXXXXXX. 15. ... The shares issued will be in consideration for the transfer of shares of XXXXXXXXXX. ... The consideration received for the shares is estimated at $XXXXXXXXXX per share or in total $XXXXXXXXXX This is the value that has been attributed to the XXXXXXXXXX that are held by XXXXXXXXXX. 23.Provided that the XXXXXXXXXX Shareholders approve the Subscription Agreement, there will be concurrent subscription of shares of XXXXXXXXXX The cash obtained from this share subscription will be used for working capital purposes. ...

Standby time (i.e, time during which an employee was required to be available for work, but was not requested to work) should not be taken into consideration in establishing the percentage of employment duties performed on or off reserve. ... For purposes of the Guidelines that take into consideration the location where the duties of employment are performed, the most relevant locations are the locations at which the employee is required to perform the duties (position taken in other files). ... That is, for purposes of the Guidelines that take into consideration the location where the duties of employment are performed, in our view, the most relevant locations are the locations at which the employee is required to perform the duties. ...

The Shipcos will pay fair market value consideration for Mgtco’s services. 16. ... Mgtco will pay fair market value consideration for Crewco’s services. 17. ... New Charterco will pay fair market value consideration to the Shipco’s for their services. ...

On XXXXXXXXXX ("Parentco"), a US corporation, subscribed for XXXXXXXXXX Class A Special shares (issued from treasury) of XXXXXXXXXX ("Canco"), its Canadian subsidiary corporation, in consideration for the cancellation of $XXXXXXXXXX of indebtedness of Canco to Parent. 2. ... Subsection 25 of the CBCA provides that a share cannot be issued until it has been paid for: "25. (1) Issue of shares- Subject to the articles, the by-laws and any unanimous shareholder agreement and to section 28, shares may be issued at such times and to such persons and for such consideration as the directors may determine. (2) Shares non-assessable- Shares issued by a corporation are non-assessable and the holders are not liable to the corporation or to its creditors in respect thereof. (3) Consideration- A share shall not be issued until the consideration for the share is fully paid in money or in property or past services that are not less in value than the fair equivalent of the money that the corporation would have received if the share had been issued for money. (4) Consideration other than money- In determining whether property or past services are the fair equivalent of a money consideration, the directors may take into account reasonable charges and expenses of organization and reorganization and payments for property and past services reasonably expected to benefit the corporation. (5) Definition of "property"- For the purposes of this section, "property" does not include a promissory note or a promise to pay, that is made by a person to whom a share is issued, or a person who does not deal at arm's length, within the meaning of that expression in the Income Tax Act, with a person to whom a share is issued. ...

In this regard, the plan must contain the following basic elements: (a) an undertaking by one person, (b) to indemnify another person, (c) for an agreed consideration, (d) from a loss or liability in respect of an event, (e) the happening of which is uncertain. ... In our view, a plan that consists of a contract between an individual and an insurance company, under which the insurance company agrees to reimburse the individual for actual medical and hospital expenses and receives, as consideration, premiums based on reasonable actuarial and underwriting principles, could qualify as a plan in the nature of insurance as set out in paragraph 3 of IT-339R2. 3) In our view, a plan that consists of a contract between an individual and a professional association (the taxable income of which is exempt under subsection 149(1) of the Act), where- the professional association would act as a group insurance policyholder of a contract underwritten by a licensed insurer and- all participating individuals would be members of the professional association, under which the licensed insurer agrees to reimburse the participating individual, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, premiums based on reasonable actuarial and underwriting principles, could qualify as a plan in the nature of insurance as set out in paragraph 3 of IT-339R2. 4) In our view, a plan that consists of a contract between an individual and a professional association (the taxable income of which is exempt under subsection 149(1) of the Act), under which the professional association agrees to reimburse the individual, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, a premium that is adjusted annually to reflect the previous year's deficits and surpluses, could qualify as a plan in the nature of insurance as set out in paragraph 3 of IT-339R2. ... In our view, a plan that consists of a contract between an individual and a professional association (the taxable income of which is exempt under subsection 149(1) of the Act), under which the professional association agrees to reimburse the individual, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, a "cost plus" amount, would not qualify as a PHSP since it does not contain the necessary elements of insurance. ...