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The submission also provided some additional comments and recommendations which address key issues and considerations for plan administrators and members where the acquisition of a third-party annuity is being contemplated. We understand that the draft newsletter has been delayed due to the ongoing consideration of certain pension regulatory elements. ...

We also offer a number of suggested changes for your consideration. These are summarized below and are also written on the draft. 1.      ... In the second sentence in paragraph 3 we suggest "residents of Canada" read "resident in Canada" as that is how the phrase is used throughout the Act. 4.     Consideration ...

Jones is distinguishable from the case under consideration for a number of reasons.  ... Jones the guarantee was given for no consideration except for an agreement to purchase tobacco products from the guarantor and could therefore produce no income in and by itself.  ...

In our opinion, where an insurance company accepts an annuity contract as partial consideration for the assumption of another party's obligation with respect to an out of court settlement, the insurance company would be required to include in income, in the year the annuity contract is received, an amount equal to the aggregate of the fair market value of the annuity contract and the other consideration pursuant to section 9 of the Income Tax Act (the "Act").  ...

" However, paragraph 110.6(14)(f) provides the following::      "shares issued after June 13, 1988 by a corporation to a particular person... shall be deemed to have been owned immediately before the issue by a person who was not related to the particular person...unless the shares were issued      (i)  as consideration for other shares, or      (ii)  as part of...a series of transactions in which the person...disposed of property to the corporation that consisted of all or substantially all of the assets used in an active business carried on by that person... ... This is so because criteria (ii) is clearly not met an criteria (i) may not be met since the shares received were issued as a split of the existing share and not as consideration for other shares. 24(1) IT-65, "Stock splits and Consolidations" provides the following:      "Where all the shares of a class of stock of a corporation are replaced by a greater or lesser number of shares of the same class of stock of the same corporation in the same proportion for all shareholders, in circumstances where there is no change in the total capital represented by the issue, there is no change in the interests, rights or privileges of the shareholders and there are concurrent changes in the capital structure of the corporation or the rights and privileges of other shareholders, no disposition or acquisition is considered to have occurred". ...

A transfer of property to a registered charity is not a gift for the purposes of section 118.1 of the Income Tax Act (the "Act") if there is consideration of any kind being received in return. The word "gift" has been interpreted by the Department as being a voluntary transfer of property without consideration and without conditions.  ...

While we agree with the comments in the draft bulletin, we have noted the following points for your consideration: 1.      ... Furthermore, designations under subsections 104(13.1) and 104(13.2) of the Act will result in a reduction in the adjusted cost base to the beneficiaries of their capital interest in the trust under paragraph 53(2)(h) of the Act, unless that interest was acquired for no consideration where the trust is a personal trust. ...

A") of the capital stock of a corporation ("Opco") transfers the particular shares to Opco for consideration that includes shares of Opco and that, even though all of the shares of a particular class were so transferred, the provisions of subsection 86(1) of the Act would not apply by virtue of the limitation provided in subsection 86(3) of the Act. Assumptions In formulating our reply we have made the following assumptions. i)     Opco is a taxable Canadian corporation within the meaning of subsection 89(1)(i) of the Act. ii)     All the issued shares of the particular class of Opco shares are transferred. iii)     The share attributes of the particular shares of Opco received as consideration for the particular shares of Opco transferred are not identical. iv)     The amount by which the paid-up capital in respect of the class of shares issued by Opco has increased by virtue of the issuance of the shares on the transfer, is equal to the paid-up capital of the shares being transferred to Opco by Mr. ...

Essentially, the issue in respect of the particular case here under consideration is the date at which the seller and buyer intended that title to the equipment passed to the buyer, having regard to the fact that the equipment was not in existence on the date the agreement of sale was entered into, but was to be (and was) subsequently manufactured by the seller. ... It is submitted that in the case here under consideration, 24(1) So far as we can determine from the materials you provided to us, 24(1) Variation in Exchange Rate Before Date of Acquisition So far as we have been able to determine, there is no case law or statutory guidance as to the treatment of variations in the exchange rate before the date of acquisition of the property. ...

In our view, where paragraph (d) of the QSBCS definition applies, that paragraph will require that the reference to "more than 50%" in clause (c)(ii)(B) of the QSBCS definition be read as a reference to "all or substantially all" in respect of other corporations connected (within the meaning of subsection 186(4) of the Act) with the corporation whose shares are under consideration, for the period of time specified in that paragraph. ... Whether or not this factor, as well as, all other requirements of the small business corporation or QSBCS definitions are satisfied involve questions of fact which can only be decided after consideration of all the relevant facts of a particular situation. ...