Search - consideration

The first that come to mind are the rollover provisions where if ACB is generated, there is an immediate income inclusion, so under section 85 for example, if property is transferred and non-share consideration is received in excess of the ACB of the transferred property, that would prompt an income inclusion- so: a similar result. ...

The guidance was careful to note that our administrative concessions in the guidance were not a promise that you would avoid Canadian residency, but rather that this new COVID situation and the restrictions on travel would be taken into consideration. ...

Turning to the question, in our view, a power of attorney under which a designated attorney exercises the voting rights of a controlling shareholder of a corporation as a consequence of the incapacity of that shareholder who continues to be the legal and beneficial owner of those shares would not constitute an external document that has to be taken into consideration in determining the de jure control of the corporation. ... New subsection 245(4.1) of the general anti-avoidance rule (“GAAR”) provides that if an avoidance transaction is significantly lacking in economic substance it is an important consideration that tends to indicate that the transaction results in a misuse or abuse under subsection 245(4). ...

CRA Panelists: Stéphane Prud'Homme, Director, Reorganizations Division Daryl Boychuk: Manager, Income Tax Rulings Directorate Q.1- Deferred safe Income and preferred shares The Canada Revenue Agency (CRA) has considered the allocation of safe income to preferred shares where a shareholder acquires preferred shares in a corporation as consideration for the transfer of a property (other than shares) on a tax-deferred basis to the corporation. ... Preliminary Response Prud'homme: As part of the Safe Income Paper, the CRA stated that, where a shareholder acquires preferred shares as consideration for the transfer of property on a tax deferred basis, the accrued gain on the property at the time of the transfer that is subsequently realized by the corporation would be viewed as contributing to the gain on the preferred shares, and accordingly would be included in the safe income of the preferred shares. ...

In light of the above, any changes to the Income Tax Act in this regard would be based on tax policy considerations. ... C, for FMV consideration. The three individuals were not related persons. 2010-0373131C6 confirmed the CRA view now contained in Folio S1-F5-C1 that there is a presumption that the shareholders of a private corporation having two or three unrelated shareholders will act together to exercise control of the corporation. ... D for FMV consideration. 2010-0373131C6 confirmed the CRA general position now contained in Folio S1-F5-C1 that in a situation where a private corporation has three unrelated shareholders, none of whom individually has control, the CRA presumes that the three shareholders act in concert, thereby forming a group that controls the corporation. ...

Should residency and permanent establishment issues arise in future audits, the CRA will give due consideration to the impact of COVID-19 travel restrictions in its overall evaluation of facts. ...

Situation (b) Moreno: The same considerations as above would be relevant. ...

A Folio is our web-friendly technical publication that takes consideration of the state of the law, and relevant Tax Court decisions and technical interpretations that the CRA has produced up until the date of the Folio publication. ...

As provided for in subsection 256(5.11) and the applicable jurisprudence, any factor, whether contractual, commercial, economic, moral or familial, may be taken into consideration in order to determine whether a person or group of persons has influence, direct or indirect, the exercise of which would result in de facto control of a corporation ("Influence"). ... Under paragraph 80(2)(a), an obligation issued by a debtor is settled at any time where the obligation is settled or extinguished at that time (otherwise than by way of a bequest or inheritance or as consideration for the issue of a share described in paragraph (b) of the definition excluded security in subsection 80(1). ...

However, it is not uncommon for a shareholder to request an S Corporation agreement and, while the request is under consideration, file the Canadian returns in the expectation that an S Corporation agreement will be provided. ...