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S. 87(4) requires that such shares be the only consideration received by the Target shareholders “on the amalgamation.” CRA noted that any payments made by Parent to the Target shareholders for any breaches of representations or warranties would normally be made well after the amalgamation, and would not be viewed as consideration for shares paid on the amalgamation, so that s. 87(4) could still be satisfied– and it also would not be problematic if the compensation was paid by Parent in the form of issuing additional shares. ...

., trailing commissions) paid by the manager of a mutual fund trust or corporation to a dealer generally would be regarded as part of the exempted consideration for the dealer’s services in arranging for the sale of shares or units, and not as consideration for a separate taxable supply from the dealer to the manager. ...

The ARQ accepted that various salary expenses of CS Canada (of about $0.9M per annum) were incurred on the prosecution of SR&ED, but denied investment tax credits on the basis that the contractual consideration paid by P&W constituted “contract payments” under the Quebec equivalent of the definition of that term in ITA s. 127(9), i.e., on that basis that the SR&ED was performed on behalf of P&W. In finding that such payments were not contract payments, so that CS Canada was entitled to its claimed ITCs, Riverin JCQ noted that subject matter of the contract was a sale of system control software (required to meet the detailed specifications of P&W) and not the performance of SR&ED, and that CS Canada bore all the risk (it paid all the development costs in consideration for a largely fixed contract price), and retained ownership of the intellectual property developed by it in performing the development work (although it licensed that IP to P&W). ...

CRA stated: An apportionment of a royalty payment agreed to by arm’s length parties under a mixed contract, to the extent that it is reasonable and realistic, in the sense that it is reflective of the actual consideration paid for a copyright described under subparagraph 212(1)(d)(vi), will generally be accepted by the CRA. … In determining if an apportionment provided under a mixed contract is reflective of the obligation of the parties under subsection 212(1), consideration would be given, amongst others, to the terms of the mixed contract and to whether the parties have divergent interests in respect of this apportionment. ...

A proposed post-mortem pipeline entailed the estate redeeming some of its shares so as to use Holdco’s GRIP and to generate a s. 164(6) loss carryback, then transferring its shares to a Newco created by it in consideration for notes whose principal would be subject to the s. 84.1(2)(a.1) limitation having regard to the previous s. 110.6(2.1) claims, and shares as to the balance of the consideration received on a s. 85(1) rollover basis. ...

A requirement for this relief is that the "only consideration received in respect of" the drop-down is shares of the new foreign affiliate. 2014-0550451E5 considered that this requirement will not be satisfied if the new foreign affiliate assumes any liabilities of the transferor FA as part of the purchase. In a delayed reaction to this interpretation, an amendment to Reg. 5907(2.01) will allow the consideration received to include “the assumption by the other affiliate of a debt or other obligation owing by the particular affiliate that arose in the ordinary course of the business of the particular affiliate to which the affiliate property relates.” ...

CRA indicated that there was insufficient information to determine whether the deduction of the IMFs represented the payment of charges by the pooled funds (viewed as segregated funds that were deemed to be separate trusts by ETA s. 131) to the insurer (in which event such charges would be subject to GST/HST pursuant to s. 131(1)(c)(i)), or whether the IMFs were merely an element in computing the unit value of the pooled funds, so that they were not consideration for any supply. However, under either interpretation, the employer was not acquiring investment management services under the policies, nor paid GST/HST on any consideration therefor, so that no input tax credits were available to it. ...

Perram and Jackman JJ found that, since as a matter of contractual interpretation, all of the amounts paid by the Bottler to the Seller were consideration for the sold concentrate, none of such payments could be treated as a trademark royalty that was subject to Australian withholding tax. ... Accordingly, the Commissioner’s assessment of Australian withholding tax on a portion of the consideration was reversed. ...

Under CRA’s arrangement made in 1991 with the Canadian Dental Association, a dentist registrant could, for each reporting period in a fiscal year, use an estimate up to a maximum of 35% of the total consideration charged for orthodontic treatments to represent the consideration for the supply of orthodontic appliances, and claim ITCs on that basis – but then, at the end of the fiscal year, was required to perform a reconciliation based on the actual amounts charged for orthodontic appliances, and adjust the ITC claims for the year accordingly (keeping in mind that charges for cosmetic services also generated ITCs). ...

9 February 2025- 11:20pm CRA finds that licence fees received from a registrant for worldwide rights to use copyright were fully subject to GST/HST Email this Content A registered resident individual who carried on a business of producing videos entered into an agreement with a Canadian “Web Publisher” under which the individual granted the Web Publisher the worldwide right to distribute and reproduce the videos in consideration for a percentage of the revenues generated. ... In finding that all the consideration paid by Web Publisher to the individual was subject to GST/HST pursuant to ETA s. 142(1)(c), which deems a supply of intangible personal property to be made in Canada if it may be used in whole or in part in Canada, CRA stated: [T]he rights are granted on a worldwide basis, without any restrictions on where they may be used, from which we conclude that they may be used in Canada. ...