Search - consideration

Scenario 1 Aco will transfer the property to Bco for consideration of $100. ... Scenario 2 Aco will sell the property to Bco for consideration of $80 cash. ...

Under the common law, "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" (The Queen v Friedberg, [1992] 1 CTC 1, 92 DTC 6031 (FCA)). Generally, for purposes of section 118.1, a gift under common law is made if a taxpayer has donative intent, and all three of the following conditions are satisfied: there must be a voluntary transfer of property to a qualified donee; the property transferred must be owned by the donor; and no benefit or consideration must flow to the donor. ...

15 September 2017 External T.I. 2017-0696821E5 F- Amalgamation Unedited CRA Tags 87(1)(a), 87(1)(c), 87(4) Principal Issues: What is the tax treatment of the receipt of non-share consideration by a shareholder on an amalgamation? Position: Subject to the application of subsection 245(2), non-share consideration received on an amalgamation is treated as proceeds of disposition. ...

The FMV of the shares of FCo that were transferred by ECo was equal to the FMV of the shares of BCo received by ECo as consideration. 8. ... On XXXXXXXXXX, ACo transferred its shares of BCo to DCo for consideration including shares of the capital stock of DCo pursuant to subsection 85.1(3) of the Act. 11. ...

Under the common law, “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” (The Queen v Friedberg, [1992] 1 CTC 1, 92 DTC 6031 (FCA)). Generally, for purposes of sections 110.1 and 118.1, a gift under common law is made if a taxpayer has donative intent, and all three of the following conditions are satisfied: there must be a voluntary transfer of property to a qualified donee; the property transferred must be owned by the donor; and no benefit or consideration must flow to the donor. ...

For instance, the portion of the business income of a corporation for a taxation year generated by the following activities will generally be from the provision of services rather than provision of intangible property for the purposes of the TOSI rules: payments obtained as consideration for after-sales service; payments for services rendered by a supplier under a guarantee, and payments for pure technical assistance (b) Remains a question of fact. ... For instance, the portion of the business income of a corporation for a taxation year generated by the following activities will generally be from the provision of services rather than provision of intangible property for the purposes of the TOSI rules: payments obtained as consideration for after-sales service, payments for services rendered by a supplier under a guarantee, and payments for pure technical assistance. ...

Generally, a pension plan exists where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and the contributions are used to provide an annuity or other periodic payment on or after the employee’s retirement. ... Based on the fact that contributions were made to the SMSF by an employer of the taxpayer’s ex-husband in consideration for his employment services and that the sole purpose of the SMSF is to provide retirement benefits to its members, it is reasonable to conclude that the SMSF is a pension plan for purposes of the Act. ...

Reasons: An interest in a related segregated fund trust is generally considered capital property and as such, eligible property as defined in subsection 85(1.1) for purposes of subsection 85(1). 2020 CALU CRA Roundtable – July 2020 Question 4- Segregated Fund Policies and Section 85 Rollover Background Subsection 85(1) of the Act allows for a tax-deferred transfer of “eligible property” to a corporation where the consideration includes shares of that corporation. ... A wants to transfer the interest in the segregated fund policy into a taxable Canadian corporation (Opco) under subsection 85(1) of the Act and will only receive common shares in Opco as consideration. ...

The result is that for the purposes of calculating the “annual gains limit” of the beneficiary, the amount calculated in element A takes into consideration the taxable capital gain designated by the trust under subsection 104(21.2) in respect of the beneficiary, in order to permit the beneficiary (if they are an individual other than a trust) to claim the capital gains deduction under subsection 110.6(2.1). ... The designations made under subsection 104(21.2) by Trust 1 in respect of each of Trust 2 and Trust 3 must be taken into consideration in order to determine the eligible taxable capital gains of Trust 2 and Trust 3, respectively. ...

Generally, when determining the source of a capital gain from the disposition of shares for foreign tax credit purposes under section 126 of the Act, certain factors as outlined in paragraph 1.65 of the Folio would be taken into consideration. However, where Canada has entered into a tax treaty with the country to whom taxes are paid, consideration must be given as to whether the provisions of the treaty may affect and modify the general sourcing rules. ...