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S3-F4-C1- General Discussion of Capital Cost Allowance-- summary under Section 68 Summary Under Tax Topics- Income Tax Act- Section 68 Categories covered 1.80 … As it pertains to depreciable property, the provisions of section 68 can apply to consideration for: both depreciable and non-depreciable property; depreciable properties included in two or more prescribed classes; or depreciable property and something other than property, such as services, or a restrictive covenant as defined in subsection 56.4(1). ...

Example 8 (freeze common shares to employee) Where at the same time as an estate freeze an employee received common shares of the Freezeco (an arm’s length employer) for nominal consideration and immediately contributed the shares to her TFSA, there would be an advantage equalling the shares’ subsequent appreciation (as well as any dividends received thereon). ...

In making such a determination, the amount of severance that the employee would reasonably be entitled to will be taken into consideration. ...

Where the streaming of paid-up capital to a specific class of shares of the new corporation has been done in order to accomplish a form of surplus strip, consideration will be given to the application of the general anti-avoidance rule in section 245. ...

Factors indicating that a particular receipt is a windfall include the following: a) the taxpayer had no enforceable claim to the payment, b) the taxpayer made no organized effort to receive the payment, c)the taxpayer neither sought after nor solicited the payment, d) the taxpayer had no customary or specific expectation to receive the payment, e) the taxpayer had no reason to expect the payment would recur, f) the payment was from a source that is not a customary source of income for the taxpayer, g) the payment was not in consideration for or in recognition of property, services or anything else provided or to be provided by the taxpayer, and h)the payment was not earned by the taxpayer as a result of any activity or pursuit of gain carried on by the taxpayer and was not earned in any other manner. i) The factors above are based on those set out in the decision of The Queen v. ... Gifts and other voluntary payments 1.4...Amounts received as gifts, that is, voluntary transfers without consideration and which cannot be attributed to an income-earning source, are not subject to tax in the hands of the recipient. 1.5... ...

., 2013 SCC 48, 2013 DTC 5144 (SCC), the Supreme Court of Canada held that it was not possible for the predecessors to structure an amalgamation that did not meet the condition in [s. 87(1)(a)] because the governing provincial statute stipulated that on an amalgamation the amalgamated company "is seized of and holds and possesses all the property, rights and interests" of the predecessors. 1.5 An amalgamation will not be disqualified under [s. 87(1)(c)] solely because certain shareholders of a predecessor corporation receive consideration that is not shares of the new corporation, such as cash, by virtue of exercising the statutory right available in certain jurisdictions to dissent to the amalgamation. ...

For the following particular types of business, the following factors (among others) should be given consideration: development and sale of real or immovable property – the place where the property is situated; merchandise trading – the place where the sales are habitually completed, but other factors, such as the location of the stock, the place of payment or the place of manufacture, are considered relevant in particular situations; transportation or shipping – the place of completion of the contract for carriage, and the places of shipment, transit and receipt; trading in intangible property, or for civil law incorporeal property (for example, stocks and bonds) – the place where the purchase or sale decisions are normally made; money lending – the place where the loan arrangement is in substance completed; personal or movable property rentals – the place where the property available for rental is normally located; real or immovable property rentals – the place where the property is situated; and service – the place where the services are performed. 1.54 Other factors which are also relevant, but generally given less weight than the factors listed above include, but are not limited to: the place where the contract for the sale of property or the provision of services is formed or entered into; the place where payment is received; the place where assets of the business are located; and the intent of the taxpayer to do business in the particular jurisdiction. 1.55 In the case of a single business comprised of more than one of the above-mentioned activities, each activity is considered separately for purposes of determining in which country or countries the business is carried on (this situation should not be confused with the situation in which the taxpayer has separate businesses—see Interpretation Bulletin IT-206R, Separate businesses). ...

The circumstances must be examined as a whole, but it is nevertheless obvious that considerations based on the personal acts of the individual must receive special attention. ...