Search - consideration

The administrator will sell the shares of X Co. to Y Co. and receive as consideration a promissory note for $229,998 and preferred shares with a redemption value equal to the difference between the current fair market value of X Co. and the promissory note, but a total par value and paid-up capital of $2. ... The elected amount will be $250,000 and there will be a price adjustment agreement to require that total consideration equal current fair market value. 13. ...

The higher income earning spouse transfers a proportionate share of investment portfolio to the lower income earning spouse in consideration of the purchase. ... Given that the intent of section 74.5 of the Act is to exempt transfers of property, where fair market consideration is received in return, from the attribution rules in subsections 75.1(1) and (2) of the Act, it is our view that a transfer such as that described in paragraph 21 of IT-511 "interspousal Transfers and loans of Property made after May 22, 1985" (copy of which is attached) would not be a misuse of the provisions of the Act. ...

If paragraph 212(1)(h) of the Act applies, consideration must be given to the exceptions set out in parts (v) and (vi) thereof. ... Once the extent to which the pension payments are subject to Part XIII tax pursuant to paragraph 212(1)(h) of the Act is determined, consideration must be given to whether a reciprocal tax treaty with the pensioner's country of residence reduces or exempts entirely the 25% Part XIII tax. ...

The higher income earning spouse transfers a proportionate share of investment portfolio to the lower income earning spouse in consideration of the purchase. ... Given that the intent of section 74.5 of the Act is to exempt transfers of property, where fair market consideration is received in return, from the attribution rules in subsections 75.1(1) and (2) of the Act, it is our view that a transfer such as that described in paragraph 21 of IT-511 "Interspousal Transfers and Loans of Property made May 22, 1985" (copy of which is attached) would not be a misuse of the provisions of the Act.  ...

As a third precondition, the transfer must occur without consideration or benefit accruing to the donor or to anyone designated by the donor. ... Whether or not the right to designate a specific arts charity of choice constitutes valuable consideration so as to disqualify the contribution as a gift for tax purposes is a question of fact. ...

B dispose of all of their common shares of OPCO to OPCO and, as sole consideration therefor, Mr. ... B (for consideration comprising a promissory note), the preferred shares of OPCO so acquired by HOLDCO would cease to be prescribed shares pursuant to paragraph 6205(2)(b) of the Regulations. ...

No comments were made pertaining to subsequent fiscal periods which is the matter presently under consideration. ... We also suggest that Legislation Branch be requested to revise IT100 and that in the meantime, consideration be given to making this matter the subject of a Hot Line query. ...

Interest expense on money borrowed to re-lend at a reasonable rate of interest or to make good a guarantee which had been given for consideration is deductible. ... Where a shareholder or partner borrows money at interest to make a payment under a guarantee which he had given in respect of the debts of his corporation or partnership for no consideration, his interest expense will be deductible if the funds that give rise to the debt were used by the corporation or partnership for the purpose of earning income from a business or property. ...

Notwithstanding the above comments we are in agreement with you that the language of subsection 85(1) does not present the use of a right to receive shares as consideration. ... In addition, due to the concerns raised above, it is our administrative position that where a right to receive shares is used as consideration in an 85(1) transfer the value of the right to receive a share of a particular class should not be significantly different from the value of an issued share of that parti- cular class and therefore to that end the right must be exercisable within a reasonable period. ...

As a third precondition, the transfer must occur without consideration or benefit accruing to the donor or to anyone designated by the donor. ... Whether or not the right to designate a specific arts charity of choice constitutes valuable consideration so as to disqualify the contribution as a gift for tax purposes is a question of fact. ...