Search - consideration

(c)(ii)(C) of the “total charitable gifts” in s. 118.1(1) was added to allow for the inclusion, in a trust’s total charitable gifts of the eligible amount of a gift made by the it in a s. 104(13.4)(a)-shortened taxation year, CRA quoted Friedberg (“a gift is a voluntary transfer of property owned by a donor to a donee, in return for which no benefit or consideration flows to the donor,”), and indicated that at common law there is a gift if the taxpayer has donative intent and: there was a voluntary transfer of property to a qualified donee; the transferred property was owned by the donor; and no benefit or consideration flowed to the donor. and that whether a payment by an alter ego trust to a registered charity is a charitable gift by it or a distribution of income or capital to a beneficiary turns on the trust-deed wording and the intentions of the trustee in making the payment. ... It is a question of fact as to whether the husband and wife could be considered to satisfy the excluded business test for a particular year or continue to meet such test thereafter, as consideration must be given to the ongoing nature and labour requirements of the corporation’s business. ... In general, for the purposes of determining whether an amount would have been an excluded amount in respect of a deceased spouse or common-law partner of a specified individual had it instead been included in their income, consideration needs to be given to all their facts and circumstances in the applicable taxation year, including any shares of the corporation owned by them. ...

Although s. 107(2) is not applicable to this situation, consideration could be given to whether s. 248(1) – “disposition” – (f) or s. 107.4(3) could apply to allow the property to be transferred on a tax-deferred basis. We have not considered the application of these provisions in this situation, but note that the determination of whether they could be applicable would require consideration of all the relevant facts and circumstances, including the terms and conditions that apply in respect of both Trust and New Trust. ... At a particular time on November 1, 2020, ACo purchases for cancellation all of its shares owned by BCo for consideration that exceeds the aggregate paid-up capital of those shares, resulting in ACo being deemed to pay a dividend, as computed under subsection 84(3) (“Deemed Dividend”) at that time, to BCo. ...

After further consideration in this case, the Directorate concluded that as the contribution of Note1 by FA2 to FA3 enhanced the dividend-earning potential of the shares of FA3 held by FA2, Note1 should be considered to have been acquired by FA2 for the purpose of earning income from those shares, so that the test in s. 95(2)(a)(ii)(D) was satisfied. ... At a later juncture, Phil made an (at least somewhat off-the-cuff) remark that consideration might be given in Canada to a rule that limited interest deductions to EBITDA minus s. 113 deductions, i.e., to 25% of Canadian-source income. ...

On inbound charges, again, the stock compensation component might be a relevant consideration in following the arm’s length principle. ... Other considerations would have to be considered if USco has Canadian employees or employees working in Canada. ...

In any particular case, it is a question of fact as to whether the specified individual was actively engaged on a regular, continuous and substantial basis in the business, which necessitates the consideration of various factors, including, among other things, the individual’s specific involvement and the nature of the business. ... In particular, the “excluded shares” and “reasonable return” exceptions should also be taken into consideration. ...

Notes From Presentation CRA cannot comment on all the considerations respecting the measuremnt of a benefit, which would be based on the facts and circumstances of each case. ...

It states, in part: The calculation of the amount or value of the benefit is usually based on the fair market rent for the property minus any consideration paid to the corporation by the shareholder for the use of the property. ... Any consideration paid for the use to the corporation by the non-resident shareholder, or the individual not dealing at arm’s length with them, for the use of the property is deducted from the imputed rent. ... What are some of the considerations that the legal representative should consider and document when asking for an extension? ...

A sold, for a cash consideration, all of the shares he held of the capital stock of Targetco to a corporation resident in Canada ("Acquireco"). ... In the 1986 interpretation, it was stated that in view of this perceived anomaly, the memorandum was sent to Current Amendments for their consideration. ... If, after consideration of all the facts and circumstances, it were shown that Child would exercise a sufficiently significant power previously exercised by Mr. ...

A transferred his shareholding of Opco 1 (wholly-owned by him) to a corporation (Opco 2) equally owned by him and his spouse in consideration for a note. ... In consideration for the early termination of the lease, the new owner paid $15,000 to the tenant. ... The determination of when a corporation is wound up for the purposes of subsections 88(1) and 88(2) requires consideration of all facts and circumstances relevant to a particular situation. ...

The individual can then choose to claim the repayment as a deduction on the 2021 income tax and benefit return or request a reassessment on the 2020 income tax and benefit return to take into consideration the repayment made. ... If not, would consideration be given to reviewing these objections on an accelerated basis as they tend to deal with businesses that have been impacted by COVID-19. ... The CRA continues to evaluate the legislative provisions, privacy, and security considerations associated with signatures on other forms. ...