Search - consideration

In that letter, we indicated that, in our opinion, the warranty obligations represent outstanding liabilities of the transferor of the business and their assumption by the purchaser would be part of the consideration paid upon acquisition of the business. ... In the situation you describe relating to the sale of a business, an estimate of the outstanding warranty obligations to be transferred is necessary since the assumption of these obligations by the purchaser will reduce the amount of other consideration that he is willing to pay for the business. ...

Bailey 957-2061 Attention: July 2, 1990 Dear Sirs: This will reply to your letter of June 7, 1990 requesting our views on the tax consequences to a Canadian farmer of the receipt of proceeds from the granting of a right of access and easement to his vineyard and the receipt of consideration for permanent damages to his vineyard as a result of an underground gas pipeline constructed under the right of way. ... Therefore the consideration received by him for the right of access and easement would be an amount described in subparagraph 14(5)(a)(iv). ...

" 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". ...

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. ...

For example, where shares of the Canadian holding company were issued to the German corporation as consideration for transfer to the Canadian holding company of shares of the second tier Canadian company and the capital of the shares of the Canadian holding company so issued exceeded the paid-up capital of the shares of the second tier Canadian company, the paid-up capital of the shares of the Canadian holding company so issued would be equal to the paid-up capital of the shares of the second tier Canadian company. Or, for example, where shares of the Canadian holding company were issued to the German corporation as consideration for the transfer to the Canadian holding company of other property (having a tax cost that was less than the fair market value of the property) without recognizing, on such transfer, any gain on such property for Canadian tax purposes and the capital of the shares of the Canadian holding company so issued exceeded the tax cost of the property the paid-up capital of the shares of the Canadian holding company so issued would be equal to the tax cost of the property. ...

If the individual and his CCPC received adequate consideration from Participant CCPC with respect to the loan guarantees, it would seem reasonable to assume that the guarantees were given for the purpose of gain- ing or producing income. ... If adequate consideration was not received, then any loss arising from the guarantees would be deemed to be nil by virtue of subparagraph 40 (2) (g) (ii) of the Act. ...

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. ...

On XXXXXXXXXX, Opco 2 acquired the business assets of a XXXXXXXXXX for cash consideration of $XXXXXXXXXX. On XXXXXXXXXX, Opco 2 acquired the business assets of XXXXXXXXXX for cash consideration of approximately $XXXXXXXXXX. ... As consideration, New Opco will assume certain liabilities and will issue New Opco Common Shares to Old Opco. ...

As consideration therefor, S Co will issue a number of its common shares to S having an aggregate fair market value equal to the aggregate fair market value of all the shares so transferred to S Co. ... As consideration therefor, F Co will issue a number of its common shares to F having an aggregate fair market value equal to the aggregate fair market value of all the shares so transferred to F Co. ... As consideration therefor, TG II will issue a number of its Special C Shares to DE having an aggregate redemption amount and fair market value equal to the aggregate fair market value of all the shares transferred to it by DE. ...

Upon DC’s incorporation, A and C each subscribed for XXXXXXXXXX Common shares of DC for $XXXXXXXXXX cash consideration. 5. ... As consideration for the transfer, Partnership received DC Preferred shares and a non-interest bearing promissory note. ... Each class of Preferred shares has a non-cumulative dividend entitlement computed based on a fixed percentage range of the FMV of the consideration received for the shares when first issued. 14. ...