Search - consideration

Reasons: The transfer is not voluntary and consideration is received for the gift (albeit not from the charity) 972933 XXXXXXXXXX J.E. ... A gift for purposes of section 110.1 of the Income Tax Act is a voluntary transfer of property without valuable consideration. ...

The Vendor sells the shares to a Canadian corporation (the "Purchaser") and receives Special Warrants issued by the Purchaser as consideration. The terms of the Special Warrants provide that: 1.On exercise thereof, the Vendor will be entitled to receive 1 common share of the Purchaser without payment of any additional consideration. 2. ...

Position TAKEN: No provided that all shareholders have the right to participate pari passu in the payment of dividends beyond (1) their dividend entitlements, in the case of preferred shareholders, and (2) a reasonably similar or like amount to common shareholders after taking the different class features into consideration. ... In our view the existence of multiple classes of preferred shares would not be contrary to paragraph 130.1(6)(e) provided that all shareholders have the right to participate pari passu in the payment of dividends beyond (1) their dividend entitlements, in the case of preferred shareholders, and (2) a reasonably similar or like amount to common shareholders after taking the different class features and characteristics into consideration. ...

The property was sold to the sole shareholder’s corporation for non-share consideration having a total value of $1.4 million. ... Thus, in your example, in our view that there would be no recapture; the $.8 million excess consideration taken from the corporation is most accurately described as an appropriation from the corporation. ...

Subsection 206(4) of the Income Tax Act (the “Act”) provides that where an RRSP, RRIF or other taxpayer, as noted therein, acquires a property from a person with whom the taxpayer was not dealing at arm’s length, for no consideration or for consideration that is less than the fair market value of the property at the time, the taxpayer will be deemed to have acquired the property at its fair market value. ...

Subsection 206(4) of the Act provides that where an RRSP, RRIF or other taxpayer acquires a property from a person with whom the taxpayer was not dealing at arm’s length, for no consideration or for consideration that is less than the fair market value of the property at the time, the taxpayer will be deemed to have acquired the property at its fair market value. ...

Reasons: Comments reflected a suggestion for greater certainty only; upon further consideration concluded that taxpayer would not be able to rely on subsection 66(12.61). 983306 XXXXXXXXXX A.A. ... Our Comments XXXXXXXXXX However, after further consideration of this matter, we share your view that a taxpayer would not be able to rely on the provisions of subsection 66(12.61) of the Act to establish that an expense had been incurred for purposes of the definition of “qualifying mining exploration expense” contained in the METC legislation. ...

In the case of rescission, the investor may become entitled to a full refund of all consideration paid on the acquisition of the shares issued to such investor. Paragraph 6202.1(1)(b) of the Income Tax Regulations provides that a share will be a prescribed share, and therefore not a flow-through share, where, inter alia, at the time it is issued, any person has, either absolutely or contingently, an obligation to make a payment, either immediately or in the future, that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation of "all or part of the consideration for which the share was issued... ...

Paragraph 3 of Interpretation Bulletin IT-110R2, copy enclosed, states that a gift for income tax purposes, is a voluntary transfer of property without valuable consideration. ... No valuable consideration- no benefit of any kind- to the donor or to anyone designated by the donor may result from the payment. ...

Principales Questions: Are TV Program Listings taken into consideration when determining the contents of an issue of a periodical for purposes of subparagraph (b)(vi) of the definition of "Canadian issue" in subsection 19(5) of the Act? ... Generally, where a periodical contains a significant amount of articles with a TV program listings which provides a brief description of the program as well as the title, the channel and the time on which the program is aired, it is our opinion that the TV program listings are not taken into consideration in determining the contents of a periodical for the purposes of subparagraph (b)(vi) of the definition of "Canadian issue" in subsection 19(5) of the Act. ...