Search - consideration

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.” ...

Likely non-application of s. 75(2) where shares issued to s. 7(2) trust are from treasury (p. 24) Although one of the s. 8(12) requirements is that the trust have disposed of the share to the corporation that issued the share to the trust, CRA has indicated that a reversion engaging s. 75(2)(a)(i) requires the transferee to have owned the property before it was held by the trust – so that s.75(2) should not apply where the corporation’s shares were issued directly from treasury to the trust (see 2006-0218501E5, 2007-0243241C6 and 2009-0317641E5 regarding the situation where a trust subscribes for shares of a corporation for FMV consideration). ...

However, the October 2012 explanatory notes make it clear that the Department of Finance intended that the disproportionate election be taken into consideration when determining the hypothetical deduction under paragraph 113(1)(b). ... On the basis of this example, ACB appears to be relevant only when the notional dividend is paid from a top-tier affiliate to a taxpayer, at which point a notional deduction under paragraph 113(1)(d) becomes a consideration. ...

Similar to subsection 56.4(6), subsection 56.4(7) also requires the covenant be an undertaking not to compete with the purchaser (or a related person), and requires the grantor to have received no consideration for the covenant. ... Unavailability of s. 56.4(2) capital treatment rule (p. 1607) As neither of the above exceptions are met, section 68 applies to deem a portion of the $1 million proceeds to be consideration for the non-compete agreement, the amount of which would be fully includable in Mr.. ...

First, the willingness of the courts to take into account relatively subjective business considerations, such as strength of bargaining power, in finding a directing mind seems to have carried the latter concept a long way. …. ... The employee was one of three shareholders of the employer corporation, having joined the business by transferring his client base and paying $34,000 to the two current shareholders in consideration for one-third of the shares of the company, and entering into an employment agreement. ...

In cases where the farmee receives a royalty rather than a percentage interest in an unproven resource property in consideration for performing exploration and development work, the CRA will consider applying the Administrative Treatment in the context of an advance tax ruling and according to the "historical basis" of the Administrative Treatment, but will not offer a blanket extension of the Administrative Treatment in the form of a technical interpretation. ...

.… Turning (at p. 126) to the "borne by" test: If, under article 15(2)(c), consideration is given to the part of the enterprise in which the relevant employer functions are primarily exercised, and not where the remuneration is, for whatever reason, deductible, the object and purpose of the 183-day rule will be better realized. ...

For example, in situations where there is a U.S. parent and there are secured loans to both the parent and the Canadian subsidiary, it is often the case that, because of U.S. tax considerations, the Canadian assets are provided as security for the Canadian obligation but not as security for the U.S. obligation. ...

OECD Model, Art. 9 accommodation of considering overall commercial relations (p.101) As with the American provision, Article 9 does not require consideration of particular transactions but rather the overall commercial or financial relations between two enterprises. ...

Crawford, "Funding of Retired Partners' Cash Requirements", 1992 Conference Report, C. 34 Crawford, "Tax and Capital Considerations in Refunding Retired Partners' Income and other Cash Requirements", 1991 Conference Report, c. 34. ...