Search - consideration

In essence, consideration of all the facts and circumstances surrounding a particular situation must be taken into account in determining, from a practical and business point of view, what the payments in question were intended to accomplish. ... In addition, section 68 provides special rules for the allocation of mixed consideration, i.e., an amount received or receivable from a person where it is reasonable to consider that this amount represents in part the consideration for: (i) the disposition of property of a taxpayer, (ii) the provision of services by a taxpayer, or (iii) a restrictive covenant granted by a taxpayer. Briefly, this allocation is based on the part of the amount that can reasonably be regarded as being the consideration for the disposition, consideration for the provision of services or consideration for the restrictive covenant, irrespective of the form or legal effect of the contract or agreement. ...

To give a general example of those considerations, though, there is a question as to whether we should allow corporations to segregate their assets into a distinct corporation in a way that would allow the distinct corporation to retain the existing treatment. ... Oral Response Brian Ernewein: We do not consider it to be exceptional to have different rules for family members or for people not dealing at arm’s length – it is more the norm than the exception in relation to valuation or other similar kinds of considerations. ... The same policy considerations would inform the application of 246.1 to that situation. ...

The position is that any assessment that relies on a domestic anti-avoidance rule will be eligible for MAP consideration- but Canada will simply present the Canadian position relying on the anti-avoidance rule to the other Competent Authority for potential relief by the other country. ... FA1 acquires the common shares of New FA3 from New FA2 in consideration for a promissory note in the amount of $100. ... Canco contributes the common shares of New FA3 to New FA2 in consideration for additional common shares of New FA2, such that subsection 85.1(3) applies to this transfer of shares. ...

Canco acquires preferred shares of FA for nominal consideration, and receives thereon a distribution of FA's exempt earnings- in order that on the subsequent sale of the FA common shares, Canco can realize a loss which will offset a FX gain on repayment of Canco's debt. ... Notes from Presentation CRA cannot provide guidelines on the more closely connected test without the benefit of an examination of all the relevant factual considerations which would be reviewed on audit. ... Cash pooling arrangements would require closer consideration, and the same analysis may not apply. ...

During that examination, we would take a look at a number of different things such as giving consideration to other articles in the particular covered treaty, for example, paragraph 7(a) of the Canada-France Treaty. Consideration would also be given to any relevant competent authority agreement, for example the Canada-Netherlands agreement regarding closed funds for mutual account. Consideration would also be given to any existing ruling that had been issued in the past, for example those on Switzerland contractual investment funds and Ireland common contractual funds. ...

Shares received on a refreeze do not reduce the “outstanding amount” as determined under ss. 74.4(3) Redemption of refrozen preferred shares for cash consideration reduces the “outstanding amount” only to the extent of the value of those shares leaving an indefinite “outstanding amount” on which the corporate attribution rules will continue to compute deemed interest income Preliminary Response Prud’Homme: The short answer is, yes, we agree. ... That said, if an estate freeze is subject to s. 74.4(2), the deemed interest benefit is computed based on the outstanding amount determined under s. 74.4(3), and the shares received on the refreeze in the example constitute excluded consideration as defined in s. 74.4(1). ... Regarding the second question, we also agree that the redemption of refrozen shares for cash consideration will reduce the outstanding amount, but only to the extent of the FMV of those shares. ...

The determination of whether the GAAR would apply to any particular situation would require a full consideration of all the facts and circumstances. ... However, where Canada has entered into a tax treaty with the country to whom taxes are paid, consideration must be given as to whether the provisions of the treaty may affect and modify the general sourcing rules. ... Consideration should be given to whether any particular estate could be deemed to be resident in Canada pursuant to section 94.] ...

However, s. 181(5)(a), which deems the redemption payment not to be consideration for a supply should apply even if the person is not making the redemption payment in the course of commercial activity. ... Notwithstanding the actual payer, this provision deems the recipient of the supply to have paid and the supplier to have collected GST/HST on that deemed consideration at the time the amount is paid. Therefore, Aco would be deemed to have collected the GST/HST on the deemed consideration for the cancellation compensation and Bco would be deemed to have paid the GST/HST. ...

Written communication is not an effective way to address certain emergent Questions – such as whether particular words or statements under consideration are being taken out of context. ...

CRA found this tax to be an “income or profits tax” Can the CRA provide any comments on its consideration of what constitutes an “income or profits tax”? ... Foreign Spinco issues shares to Foreign Pubco Notes from Presentation Commencing in 1997 (with 2006-0215751R3), CRA started issuing favourable rulings respecting cross-border butterfly transactions which avoided the s. 55(3.2)(h) problem for such butterflies by using the three-party "vaccine" [i.e., a three-party circular exchange of consideration so that Foreign Spinco is never a shareholder of DC- see Russell, “Cross-Border Butterfly Ruling,”]. ...