Search - consideration

If no other strategy is feasible, consideration should be given to minimizing the risk that a "series of transactions" will be found…. ...

.]… [I]t can be inferred that Finance determined that foreign corporate control is the flex point at which the policy considerations of facilitating international competitiveness and neutrality are abandoned in favour of the policy of protecting the domestic tax base. ...

Example of strip Emily transfers her shares of a small business corporation (Petco) with nominal tax basis and paid-up capital to a Newco- in which her daughter owns nominal value special voting shares giving her voting control, and Emily owns the balance of the equity – in consideration for a promissory note, which is repaid over the next five years with intercorporate dividends received by Newco from Petco. ...

In the tax collection agreements, each Agreeing Province then: a) undertakes to apply the same interest rate as the CRA; b) delegates its minister's taxation powers back to the Federal Minister; c) accepts the "assessments, decisions and other steps" taken by the CRA in the enforcement of the provincial tax statutes as "final and binding;" d) undertakes not to demand the imposition, collection or remission of any interest payable by a taxpayer under the provincial income tax legislation; and e) allows the CRA to retain any interest collected on provincial income tax debts "in consideration of the collection risk borne by Canada in respect of the [provincial] tax imposed. ...

Questionable TPM-09 Guidelines (p. 32:14) The TPM states that the TPRC may take into consideration whether the taxpayer provided all of the items requested under section 231.6 or 231.2… It is difficult to understand how the compliance or non-compliance of a taxpayer with requirements issued long after transfer-pricing documents were prepared could possibly have any relevance to the reasonable efforts inquiry under subsection 247(3). … [F]rom informal discussions with CRA personnel, it appears that the TPRC will consider a large adjustment to constitute almost presumptive evidence of non-compliance with subsection 247(3)…. ...

The transfer of shares from treasury to the 7(2) Trust could be completed after a corporate freeze transaction or during the start up phase of operations, so that the shares acquired by the 7(2) Trust (through a fair market value share subscription, or through a contribution of the shares by the employer corporation for no consideration) would have a nominal value – so that the employment benefit to the employees also could be nominal. ...

[P]aragraph 49(3)(a) provides that the proceeds of disposition to the person disposing of property on the exercise of an option include the consideration received by that person for the option (i.e., the option premium)…. ...

. … [A]s noted by the court in Lehigh Cement, the focus of the analysis should nonetheless be the purpose that is the specific target of the anti-avoidance rule under consideration (in this case, regulation 5907(2.02)) and not some other tax-avoidance purpose. ...