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Investments redeemed various shares held by the estate for a note (giving rise to deemed dividends and capital losses which were carried back under s. 164(6)), and the estate then disposed of all its shares of Investments to Newco in consideration for a further note. ...

S. 49(3)(a) includes “in computing the vendor’s proceeds of disposition of the property, the consideration received by the vendor for the option.” ...

Siblings 1 and 2 will each transfer his DC shares (being common shares) on a s. 85(1) rollover basis to TC1 and TC2, respectively (each incorporated by the respective Sibling) for TC1 or TC2 common shares, and DC will transfer, on a s. 85(1) rollover basis, 1/3 of each of its types of property in consideration solely for non-voting redeemable retractable special shares to each of TC1 and TC2. ...

After noting that, under s. 40(1)(a)(ii), the availability of the reserve turned on Brother-Portfolioco and Brother not having de facto control of Sister-Holdco and on Sister-Holdco not having de facto control of Brother-Portfolioco, CRA commented on the expansion of de facto control under s. 256(5.11) stating: As provided for in subsection 256(5.11) and the applicable jurisprudence, any factor, whether contractual, commercial, economic, moral or familial, may be taken into consideration in order to determine whether a person or group of persons has influence, direct or indirect, the exercise of which would result in de facto control of a corporation …. ...

This reporting was accepted by in the Court of Quebec on the basis inter alia that the equivalent of ITA s. 7(3)(a) established that the stock option rules constituted a “complete code” so that the equivalent to ITA s. 69(1)(b) did not apply to deem the “value of the consideration for the disposition” received by the taxpayer to be equal to the options’ fair market value of $3M, rather than the nil proceeds in fact received. ...

Brown began to provide significant management services, and agreed with the company that he would do so in consideration for a management fee equal to 20% of the amount by which the gallery’s annual revenue exceeded $100,000. ...

CRA ruled that GST/HST did not apply to the Damages amounts given that they were compensation for damages rather than consideration for any supply by the City, and given that s. 182(1) (which can apply to damages received by a supplier from the recipient, but not generally to damages flowing the other way) did not apply. ...

Following the death of Mother, her estate and Trust were to engage in a pipeline transaction under which: The estate and Trust transfer their Aco shares under s. 85(1) to a Newco of Trust in consideration for Newco preferred shares. ...

Trust 2 will transfer its Holdco common shares to Newco 2 on a s. 85(1) rollover basis for non-voting common shares, and Trust 1 will transfer its Holdco preferred shares to Newco 2 in consideration for non-voting preferred shares of Newco 2 whose PUC will equal the ACB of the transferred shares. ...

4 June 2023- 10:45pm Garg Investments – Tax Court of Canada finds that the recipients of a supply were the agents named in the purchase agreement, not the beneficial purchaser Email this Content A claimant of the new residential rental property rebate (NRRPR) is required under ETA s. 256.2(3)(a) to be the “recipient” of the supply of the property meaning, generally, that it is liable for the consideration for the supply under the purchase agreement. ...