Search - consideration

ACo generated a refund of its eligible refundable dividend tax on hand, or its non-eligible refundable dividend tax on hand, balances, through the purchase for cancellation (in consideration for a promissory note) of a sufficient number of its common shares.. ... The pipeline proper transactions were then to be implemented under which: The estate transfers the remaining ACo common shares to a Newco formed by it in consideration for a note and one Newco common share. ...

30 December 2020- 11:37pm CRA finds that sponsorship of a PSB’s staged production was not subject to GST/HST Email this Content ETA s. 135 deem a supply by a public sector body (PSB) of a service, or a licence of copyright, a trade-mark, trade-name or other similar property to a “sponsor” for exclusive use by the sponsor in publicizing the sponsor’s business, to not be a supply – except that this rule is stated not to apply where the consideration for this supply by the PSB to the sponsor is “primarily” for radio, TV, newspaper, or magazine advertising. ... The agreements typically provided for consideration payable by that sponsor and for sponsorship rights, which included: acknowledgement as official sponsor of the event, logo visibility on event signage on a website, in newspapers, and in social media; the sponsor’s name being on a stage; a licence to use real property to promote its brand by offering samples; and VIP invitations to attend the event. ...

Profitco transferred Class 12 property on a s. 85(1) rollover basis to Lossco in consideration for redeemable preferred shares of Lossco, then Lossco transferred the properties back to Profitco in consideration for redeemable preferred shares of Profitco having a paid-up capital equaling their redemption amount, with a joint s. 85(1) election being made at the estimated FMV of the properties, so that Lossco realized recapture of depreciation. ...

The Corporation redeems the preferred shares in consideration for a note, designates a portion (based on its GRIP account) of the resulting deemed dividend as an eligible dividend and reports a resulting capital loss, which is carried back under s. 164(6). The Estate then transfers the Class A Common Shares to a “Newco” formed by it in consideration for Newco common shares. ...

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.” ...