Search - consideration

Size and penalties The Transfer Pricing Review Committee (TPRC) takes the size of the taxpayer and the size of the transaction into account in determining whether to penalize, although these are only a factor in the consideration. ...

If Amalco sold the residential property within 365 days of the amalgamation on an s. 85(1) rollover basis to a corporation for share consideration, would such election be invalid on the basis that real property inventory could not be “eligible property” pursuant to s. 85(1.1)? ...

CRA indicated: Where the proceeds of disposition of a capital interest in a trust under s. 107(2)(c) are greater than its fair market value (FMV), s. 116(5.1) will deem the consideration paid by the trust for purposes of s. 116 to be the FMV of the Canadian real estate received. ...

CRA indicated: Although s. 116(5.1) will deem the consideration paid by the trust for purposes of s. 116 to be the FMV of the Canadian real estate received, if higher than its ACB, on an administrative basis, CRA will accept the rollover amount under s. 107(2) as representing the proceeds for purposes of issuing a certificate of compliance under s. 116, where there clearly is no risk to the Canadian tax base- which would include situations where the transferred property is Canadian real estate or other property described in s. 128.1(4)(b)(i) to (iii). ...

A) sold all the shares of Targetco for cash consideration to a resident arm’s-length purchase (Acquireco). ...

25 February 2016 CBA Roundtable, Q. 4-- summary under Subsection 317(3) Summary Under Tax Topics- Excise Tax Act- Section 317- Subsection 317(3) tax debtor still required to remit GST/HST on garnished receivable/provincial garnishment limits respected only in Quebec Where an account debtor receives a Direction to Pay under s. 317 respecting the GST/HST indebtedness of a registrant that had made the related taxable supply to the account debtor, (i) how should the account debtor treat the GST/HST portion of the amount owing by it for the supply, (ii) should it pay the tax and consideration to CRA, and (iii) how does the supplier account for the GST/HST on the payment in remitting its net tax for the applicable reporting period if that amount has been paid by the account debtor pursuant to the garnishment? ... A portion of the payment cannot be allocated to the amount that the tax debtor is required to pay on the next remittance due date as the funds were recovered by way of a Requirement to Pay in respect of the tax debtor’s pre-existing GST/HST liabilities. 4(a)(ii) [Payment of garnished amount satisfies 3 rd party’s liability] [I]f the amount owed to the CRA by the tax debtor exceeds the amount of the consideration for the supply [and] the related GST/HST…then the total amount payable by the third party to the tax debtor must be paid to the Receiver General. ...

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. ...

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. ...

Where property is supplied by way of lease, licence or similar arrangement, and consideration is paid on a periodic basis (lease interval), a separate supply is deemed to occur in respect of each lease interval. ...

. … Since B Co already owns the logs, the amounts paid by B Co are not consideration for a supply of logs by A Co but would appear to be [taxable] compensation paid to A Co for cutting the timber. ...