Search - consideration

The terms of the settlement provide, among other consideration, for the periodic payments to the Claimant of monthly payments starting at $XXXXXXXXXX, indexed at XXXXXXXXXX% per annum, compounded, commencing on XXXXXXXXXX and continuing to be made on the XXXXXXXXXX day of XXXXXXXXXX thereafter guaranteed for XXXXXXXXXX. ... In consideration of XXXXXXXXXX making the Structure Payments (and XXXXXXXXXX providing certain non-structure consideration called for in the Structured Settlement Release), the Claimant has agreed to settle the claims against the Releasees. ...

The issued and outstanding shares of XXXXXXXXXX have no fixed or determinable entitlements and constitute "common shares" within the meaning of subsection 248(1). 8.To the best of your knowledge and that of XXXXXXXXXX none of the issues in respect of which rulings are herein requested is currently under consideration by a tax services office or taxation centre in connection with a tax return or notice of objection already filed. ... The Articles of Incorporation of Newco will be such that it will be limited in its undertakings to the ownership of shares of XXXXXXXXXX, amounts of Canadian currency and securities issued by the Government of Canada. 10.XXXXXXXXXX will sell to Newco all of the shares of XXXXXXXXXX that it owns in consideration for both Voting Shares and non-voting common shares of Newco (the "Non-Voting Shares"). ... Our rulings are based on the Act in its present form and do not take into consideration any proposed amendments to the Act. ...

Our Comments In general terms, a gift, for purposes of the charitable donations tax credit under section 118.1 of the Income Tax Act (the “Act”), is a voluntary transfer of property without valuable consideration. It is our view that the publicly traded shares would not, in itself, be a gift because valuable consideration (i.e. the annuity) will be received. ... However, in the situation described above, it is our view that the publicly traded shares would not, in itself, be a gift because valuable consideration (i.e. the annuity) will be received. ...

Paragraph 6 of the Proposed Transactions of the Ruling will be amended to delete the following: "As consideration for the transfer of the Distributorco Class B Preference shares, Newco will issue XXXXXXXXXX common shares to each of the XXXXXXXXXX Shareholders (for an aggregate of XXXXXXXXXX common shares)." and replaced with the following: "As consideration for the transfer of the Distributorco Class B Preference shares, Newco will issue an additional XXXXXXXXXX common shares to each of the XXXXXXXXXX Shareholders (for an aggregate of XXXXXXXXXX common shares). ... Further Ruling "A" as provided in the Ruling is amended to read as follows: "The provisions of subsection 85(1) will apply to the transfer by XXXXXXXXXX of his XXXXXXXXXX common shares of Distributorco to XXXXXXXXXX in consideration for XXXXXXXXXX fixed value preference shares of XXXXXXXXXX such that the vendor's proceeds of disposition of the shares and the acquiror's cost of the shares will be deemed by paragraph 85(1)(a) to be equal to the elected amount in respect of that transfer. ...

Holdco to Canco for fair market value consideration and continues to pay all of the expenses of U.S. ... Generally, in the case of luxury property it may be very difficult to find a fair market rental value which could be used in the determination of the shareholder benefit and, as stated in our response to question 33 at the 1987 Revenue Canada Round Table, the benefit may have to be determined using a normal rate of return on the greater of the cost or fair market value of the property, plus the related operating costs, less any consideration paid to the corporation by the shareholder. ... Holdco is carried out solely to avoid the possible application of subsection 15(1), consideration would have to be given to whether the general anti-avoidance rule found in subsection 245(2) of the Act might apply. ...

You have further indicated that the consideration paid by Newco to Mr. ... Our comments 84.1 Generally, we agree with your conclusion that where a vendor is dealing at arm's length with a purchaser corporation, subsection 84.1(1) of the Act does not apply to the sale of shares of a subject corporation to redetermine, as dividends, the non-share consideration received by the vendor on the sale of the shares of the subject corporation. 245(2) Whether it could reasonably be considered that any of the avoidance transactions described in your letter would result in a misuse of any provision of the Act or an abuse having regard to the provisions of the Act read as a whole, such that subsection 245(2) would apply, is a determination that could only be made after a review of all the relevant facts and circumstances of a particular situation. ... In formulating our reply, consideration was not given to other provisions of the Act such as section 55 which may apply in a specific situation involving the disposition of property. ...

A literal or legalistic interpretation must be avoided when the basic object of the treaty might be defeated or frustrated insofar as the particular item under consideration is concerned. ... This issue was taken into consideration during the preparation of the bulletin. ... Since disability benefits paid under the SSA up to the age of 65 were not considered a "superannuation or pension benefit", the issue of whether paragraph 6(1)((f) of the Act could apply to such benefits was also taken into consideration. ...

ii)Would "the consideration for which the share is to be issued", within the meaning of subparagraph 66(15)(d.1)(i) of the Act and "the consideration received by the corporation for the share", within the meaning of subparagraph 66(15)(d.1)(ii) of the Act, be the $1.00 Subscription Price paid by the subscriber to acquire each Special Warrant? ... (See document EC4586 dated March 24, 1988 and E55907 dated May 2, 1988, both concerning options, for a discussion relevant to the issues raised herein.) ii) & iii)In the above hypothetical situation, provided that the agreement for the issuance of the Special Warrants constituted an "agreement in writing" (for the purposes of the FTS definition) under which the PBC is obligated to incur (and renounce to the subscriber) the expenses specified in the FTS definition and to issue its common shares to the subscriber, in our opinion the "period" referred to in subparagraphs 66(15)(d.1)(i) and (ii) of the Act would commence with the entering into of such agreement and the amount of the "consideration" for the purposes of such provisions would be equal to the Subscription Price. iv)Given the "deemed" or mandatory exercise of the Special Warrant, it would be unlikely that a Special Warrant would constitute an "option to acquire property" for the purposes of subsection 49(3) of the Act. ...

A "retirement savings plan" is defined in subsection 146(1) of the Income Tax Act and it includes a contract between an individual and a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business, under which, in consideration of payment by the individual or the individual's spouse of any periodic or other amount as consideration under the contract, a retirement income commencing at maturity is to be provided for the individual. ... The decision to revoke registration is taken only after the facts of the situation have been given careful consideration. ...

OUR COMMENTS There is no doubt that by negotiating the DCGT, the farmer has a constructive receipt in the current year equal to the consideration received on passing the DCGT on to the supplier. ... Provided the farmer otherwise qualified for the deferral contained in subsection 76(4) of the Act, the mere negotiation of the DCGT for other consideration would not be valid cause to deny the deferral. 2. ... While certain auctioneers may as a practical consideration defer payment to the vendor until such time as the purchaser's cheque has cleared, this does not change the position that the funds belong to the vendor as of the time the auctioneer has declared the livestock to be sold. ...