Search - consideration

Furthermore, the profitability of the "leasing" operation would be a consideration in this context. ... We are also adding that an additional consideration would be whether or not the general anti-avoidance provisions of section 245 of the Act could be applied. The consideration in relation to this provision is whether the amount in respect of the cost of the Vehicle could be recharacterized under paragraph 245(5)(c) of the Act. ...

Taking the foregoing into account, we are of the view that Xco receives consideration of $1,000,000 for the Land. ... (c) Is Yco entitled to deduct the entire "interest" component of the Mortgage payments if it assumes the Mortgage as partial consideration for the Land? ... the proceeds of disposition received by X co would be $850,000 which is comprised of the aggregate of the consideration received which includes the assumption of the mortgage having a principal amount of $400,000 and $450,000 cash.? ...

Deemed Dividend As discussed in paragraph 1 of Interpretation Bulletin IT-489R Non-Arm's Length Sale of Shares to a Corporation, section 84.1 of the Act contains rules concerning a non-arm's length disposition of shares to a corporation for consideration which generally includes shares of the corporation. ... Where the provisions of subsection 84.1(1) apply, there may be a reduction of the paid-up capital of the shares of the transferee corporation issued as consideration or the transferee corporation may be deemed to have paid a dividend to the transferor taxpayer. ... Nonetheless, the effect of the provisions of section 84.1 will not apply where the sum of the non-share consideration and the paid-up capital of the share consideration does not exceed the greater of: the paid-up capital of the transferred shares, and the transferor's "arm's length adjusted cost base" of the transferred shares. ...

This is also consistent with the general premise that, upon incorporating any type of business, an important consideration is that business profits must be paid out in the future as dividends. ... Under paragraph 219(1)(l), the non-resident corporation must decide how much non-share consideration to take back upon incorporating its Canadian business; this amount will determine how much branch tax is payable at that time. ... Clearly, had the non-resident corporation elected to take back non-share consideration upon incorporating its Canadian branch, the amount of that non-share consideration would be subject to branch tax. ...

Newco will then rent the depreciable property to XXXXXXXXXX for fair market value consideration. 15. ... After the completion of the transaction described in paragraph 15 above and on or after XXXXXXXXXX will dispose of its XXXXXXXXXX% partnership interest in XXXXXXXXXX and of its XXXXXXXXXX% interest in XXXXXXXXXX in favour of XXXXXXXXXX for an arm's length cash consideration. 17. ... Our rulings are based on the Act in its present form and do not take into consideration any proposed amendments to the Act. ...

Step 2: ParentCo subscribed for 100 common shares of Newco for cash consideration of $100. ... Step 6: ParentCo transferred the TargetCo New Preferred Shares to Newco in consideration for additional common shares of Newco. Step 7: TargetCo redeemed all of the TargetCo New Preferred Shares held by Newco in consideration for a promissory note (“Note 1”) Step 8: Newco redeemed all of the Newco Preferred Shares held by TargetCo in consideration for a promissory note (“Note 2”) Step 9: Note 1 and Note 2 were set-off against one another. ...

In consideration for the capital contribution, the charity undertakes to pay the donor a specified amount of the donor.  ... You mention that the consideration for the issue of an annuity would be the lesser of the capital contribution and the amount that would be charged by a commercial annuity issuer.  ... Moreover, if we refuse to regard any part of the donor's payment as the gift because the donor receives as consideration for annuity payments. it follows that the cost of the annuity is not less than the payment to the charity.  ...

In consideration for the capital contribution, the charity undertakes to pay the donor a specified amount of the donor. ... You mention that the consideration for the issue of an annuity would be the lesser of the capital contribution and the amount that would be charged by a commercial annuity issuer. ... Moreover, if we refuse to regard any part of the donor's payment as the gift because the donor receives as consideration for annuity payments. it follows that the cost of the annuity is not less than the payment to the charity. ...

Since XXXXXXXXXX, Pubco has made advances of: (a) $XXXXXXXXXX to FA 1 in consideration for a promissory note issued by FA 1 to Pubco in the principal amount of $XXXXXXXXXX (“FA 1 Note 2”), and (b) $XXXXXXXXXX to FA 2 in consideration for a promissory note issued by FA 2 to Pubco in the principal amount of $XXXXXXXXXX (“FA 2 Note 2”). ... Canco1 will loan the subscription proceeds of $XXXXXXXXXX, as described in Paragraph 19, to FA 3 in consideration for a promissory note issued by FA 3 to Canco 1 in the principal amount of $XXXXXXXXXX. 21. ... Canco 2 will loan the subscription proceeds of $XXXXXXXXXX, as described in Paragraph 25, to FA 2 in consideration for a promissory note issued by FA 2 to Canco 2 in the principal amount of $XXXXXXXXXX. 27. ...

Spousal Trust subscribed for XXXXXXXXXX Class "B" Shares for a consideration of $XXXXXXXXXX. ... Trust C owns 1 common share of the capital stock of Newco which has been subscribed for a consideration of $XXXXXXXXXX. ... Trust D will subscribe for 1 common share of the capital stock of Newco for a consideration of $XXXXXXXXXX. 29. ...