Search - consideration

Therefore, when arriving at FMV, section 154 does not provide a legislative basis to discount the consideration of an exempt supply in an attempt to remove an amount imbedded in the consideration of that supply. For example, where the consideration of a taxable supply of a residential complex is used as a comparable in a valuation methodology, the GST/HST imposed on that supply, even where the supply was “GST/HST included”, is excluded from the consideration. ... In other words, the consideration for the supply of animal care services could be reduced before Service Provider 1 charges GST/HST. c. ...

Rather, the $1.00 fee would apply, making the transaction exempt by virtue of the nominal consideration rule. ... CRA’s response was essentially that this would be taken “under consideration” regarding certain cases. ... Further, a determination of whether novation occurs in a particular case requires consideration of all relevant facts. ...

Respecting the tests in s. 20(1)(c)(ii), it might be considered that the note was consideration for property acquired. ... Section 80 of the ITA and reverse earn-outs Q.4(a) No s. 143.4 grandfathering In a situation involving the purchase of shares of a target corporation ("Target") by a newly formed corporation ("Newco") for consideration that includes an earn-out clause (resulting in a debt which is subsequently forgiven), can the CRA confirm that a reduction in the cost of the shares of Target (through the application of subsection 143.4(2) of the ITA) prior to the subsequent merger of Target with Newco would allow the debt to qualify as an "excluded obligation" (as defined in subsection 80(1) of the ITA) and, consequently, the settlement of the debt following the merger should not result in a "forgiven amount" (as defined in subsection 80(1) of the ITA)? ... In particular, the amendment of Reg. 5907(6) effective 18 December 2009 to no longer preclude the use of Canadian currency, did not affect the general considerations discussed by him. ...

If there is a standard contractual recital of $1 (but not a dollar more) of consideration and other good and valuable consideration, as an administrative concession CRA will consider that this does not preclude the exceptions from exemption from s. 68 allocation treatment from being available. ... The CRA is now prepared to accept that where a contract relating to granting a restrictive covenant uses words such as “$1 and other good and valuable consideration” simply to ensure that the contract is legally binding, and means in effect that “no more than a $1 worth of consideration” is conveyed by a purchaser for the restrictive covenant, such consideration will not, in and of itself, constitute proceeds received or receivable by the particular party for granting the RC for purposes of paragraph 56.4(6)(e) and paragraph 56.4(7)(d). ... If more than nominal consideration of $1 is paid for a restrictive covenant under the wording “$1 and other good and valuable consideration”, the exceptions set out in subsections 56.4(6) and (7) would not apply because the respective conditions in paragraph 56.4(6)(e) and paragraph 56.4(7)(d) would not be met. ...

A transfers his shares of the capital stock of Opco 1 to Opco 2 in consideration for a note Paragraph 84.1(1)(b) applies and a dividend is deemed to have been paid by Opco 2 to Mr. ... Under s. 212.1(6)(b)(ii), each non-resident beneficiary will be deemed to have received consideration other than the shares of the purchaser corporation, and that consideration received will, again, be equal to the proportion of their interest in the trust. ... Z taking into consideration the application of the deeming rule in subparagraph 120.4(1.1)(b)(ii)? ...

Would this be consideration other than shares of Parent for purposes of subsection 87(4)? ... Scenario 2 Prud'Homme: In this situation, of course, the reduction in value of the shares held by the Target shareholders is made as consideration for the settlement of the indemnity claim. ... The present scenario deals with an exchange – there is a disposition of the shares of US Pubco and, as consideration, shares of Spinco are received. ...

By “reasonable and realistic,” the CRA means that it should be reflective of the actual consideration paid for the copyright described under the exception in s. 212(1)(d)(vi). ... Whether a particular apportionment of the consideration paid is reflective of the actual payments described in the exemption under s. 212(1)(d)(vi) depends on the legal nature of what is being provided under a mixed contract. The relationship between the parties and the facts of the particular situation, including the commercial reality of the parties and the consideration paid, would be considered. ...

The first stage is informal initial consideration. The second stage is usually after the audit work is well underway, mostly completed, and we are about to propose recharacterization – it comes to the TPRC for formal approval. ... Jennings: Our administrative approach was outlined on our website, including guidance on corporate residency, permanent establishments, and other similar considerations. ... There are also some files that are under consideration for referral to the Third Party Penalty Committee. ...

We will take your suggestions into consideration for future system enhancements. ... All facts surrounding the situation must be taken into consideration as a whole and not in isolation. ... Has CRA given any consideration to allowing this type of access? CRA Response Thank you for the suggestion. ...

Part #2 Under s. 168, the GST collectible under a lease depends on the time at which the consideration under the lease is paid or becomes payable. ... Under subsection 168(1), tax is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due. Under subsection 152(2), where property is supplied by way of lease, licence or similar arrangement under an agreement in writing, the consideration, or any part thereof, for the supply shall be deemed to become due on the day the recipient is required to pay the consideration or part to the supplier pursuant to the agreement. ...