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First the application or non-application of a plan provision should not be based solely on the considerations of Revenue Canada, Taxation, particularly when alternative courses of action based on that consideration are not clearly detailed in the plan.  ...

In general terms, where an individual disposes of shares of a subject corporation, within the meaning of subsection 84.1(1), to another corporation with which the individual does not deal at arm's length for consideration comprised only of cash and debt of the other corporation and, immediately after the disposition, the subject corporation would be connected with the other corporation, paragraph 84.1(1)(b) applies to deem the individual to have received a divided equal to the amount by which the value of the non-share consideration received from the other corporation exceeds the paid-up capital of the transferred shares of the subject corporation. ...

Consequently, while CPP contributions that are required to be paid during the leave period are to be deducted and remitted by the trustee as by any other employer, those CPP contributions paid in the year prior to the leave period must be taken into consideration by the trustee. ... However, since CPP contributions made during the year prior to the leave period are to be taken into consideration by the trustee, the amount of contributory earnings reported by the trustee may not coincide with the amount of contributions reported in box "D".  ...

Adler   (613) 957-8962 February 22, 1990 Dear Sirs: This is in reply to your letter dated January 12, 1990 in which you requested clarification of this Department's interpretation of "any group of employees" as used in paragraph (d) of the definition of "designated shareholder in subsection 4901(2) of the Income Tax Regulations ("Regulations"), and provided the following two examples for our consideration.       ... Wilson, Minister of Finance, we suggest that you pursue your concerns on this issue by writing to relevant officials in his Department for their consideration. ...

Ahmed   (613) 957-2092 August 28, 1989 Dear Sirs: Re:  Subsections 85(1) and 86(1) of the Income Tax Act (the "Act") This is in response to your request for a technical interpretation contained in your letter of January 26, 1989, wherein you requested our views as to whether the provisions of subsection 85(i) of the Act would apply where a taxpayer disposes of shares of a taxable Canadian corporation to that corporation for consideration which includes shares of the capital stock of the corporation and the taxpayer and the corporation jointly elect in prescribed form to have the provisions of subsection 85(1) of the Act apply thereto. ... Opinions In our view, the provisions of subsection 85(1) of the Act apply in the case where a taxpayer transfers shares of a taxable Canadian corporation to that corporation and receives newly issued shares of the corporation as consideration therefore provided that the transferor and transferee file the prescribed form within the time limits specified in subsection 85(6).  ...

Coincident with completion of the Take-Over Bid, there is a transfer of assets by Target to a wholly-owned subsidiary, with an election under subsection 85(1) to defer the gain on the assets transferred, and share consideration is taken back.  ... (b)     Disposition of Property      Question      A Parent transfers assets to its wholly-owned subsidiary in exchange for share consideration, electing under subsection 85(1).  ...

The consideration received by Mr. A on the transfer consists of the following: a) non-share consideration, the value of which equals the agreed amounts; b) one common share with nominal value; and c) a number of redeemable preference shares with no par value, redeemable/retractable at an amount equal to the excess, if any, of the fair value of the farm property over the total fair value of a) and b) above. ...

We also offer a number of suggested changes for your consideration. These are summarized below and are also written on the draft. 1. ... Consideration should be given to including the incorporation date for Opco as it would eliminate any concerns regarding the impact of V-day on the operation of paragraph 84.1(2)(a.1). 5. ...

Second, and more importantly, it is our opinion that the position taken on these has been developed with a view to the considerations raised by XXXX and is appropriate in XXXX, circumstances. ... XXXX should, therefore, be extended the opportunity to re-submit their concerns for the Department's consideration. ...

You provided the following facts for our consideration: 1. Taxpayer is an individual who is a resident of Canada for Canadian income tax purposes. 2. ... Hypothetical financial data for purposes of the question: (a) Option price (fair market value of the shares at date option granted) $12 per share (b) current fair market value $20 per share Proposal: Employer company will purchase and cancel the option rights from employee for a consideration of $8 per share. ...