Search - consideration

In fact, the neutrality of tax considerations in setting up deferred income plans qualifying as RCAs is the main reason, in our views for the existence of the RCA legislation. 3-      Fourth paragraph.  ... Replace "than annual" with "that the annual" T4A-RCA and NR4/NR4A Filing Instruction 8-      The description of Box(E) is deficient because it neglects to mention both RCA's property dispositions for consideration less than fair market value and RCA's property acquisitions for amounts greater than fair market value. ...

The exclusion from the carved-out property rules, provided by paragraph 209(1)(c) of the Act, would not be met in this instance because the farmee's interest in the property was not acquired solely in consideration of his undertaking to incur Canadian exploration expense or Canadian development expense in respect of the property (i.e. the equipping costs taint the exclusion).       ... It is the Department's position, as outlined in paragraph 11 of Interpretation Bulletin 125R3, that to the extent that an owner of a resource property (the "farmor") transfers a part interest therein to another person "the farmee") in consideration of the farmee's agreement to incur exploration and development expenses on that property, the proceeds of disposition to the farmor and the acquisition cost to the farmee of the resource property will be viewed as being nil.       ...

The crucial consideration is the manner of determining the amount. An amount will not be interest if it is determined in "some other manner" even though the amount is later adjusted by formula so as to be expressed as a percentage of a principal sum. ... General The comments expressed in this letter are of a purely general nature and do not take into account considerations that might arise in the context of specific transactions or events. ...

The Transferor receives fair market value consideration from the Transferee in respect of the disposition with the result that, pursuant to subsection 74.5(1) of the Act, the attribution rules in subsections 74.1(1) and 74.2(1) would not apply to these shares or property substituted therefor. To the extent that the Transferor's proceeds of disposition in respect of these shares exceeded his ACB, the Transferor would realize a capital gain for the purposes of the Act and the cost of those shares to the Transferee would be equal to the fair market value of the consideration. ...

Consequently, while CPP contributions that are required to be paid during the leave period are to be deducted and remitted by the trustee as by any other employer, those CPP contributions paid in the year prior to the leave period must be taken into consideration by the trustee. ... However, since CPP contributions made during the year prior to the leave period are to be taken into consideration by the trustee, the amount of contributory earnings reported by the trustee may not coincide with the earnings reported in box "C" for that particular year. ...

The crucial consideration is the manner of determining the amount. An amount will not be interest if it is determined in "some other manner" even though the amount is later adjusted by formula so as to be expressed as a percentage of a principal sum. ... General The comments expressed in this letter are of a purely general nature and do not take into account considerations that might arise in the context of specific transactions or events. ...

The consideration for the transfer in each case would be the issue by each of Newco A and Newco B of high-low voting shares and promissory notes. ... Company C would sell the shares of Company F to Company B for similar consideration. ...

COMMENTS (a) In our opinion, in order to have an agreement in writing for the purpose of paragraph 98(5)(d) of the Act it is not absolutely required that the partnership must exist on December 4, 1985 and that it is a party to a written agreement with respect to acquisition of relevant property, provided that the person who entered into the written agreement must have explicit authority to do so as an agent for all of the members of the partnership before its existence, that all the parties to the written agreement knew and believed that the person had such authority, and that the written agreement must otherwise meet all the requirements of a contract,including offer, acceptance, consideration And certainty of essential terms. ... But, based upon the above analysis, there is a respectable argument that these are not the absolute requitements in order to have an agreement in writing, provided that the person has explicit authority to enter into the written agreement as an agent for all of the members of the partnership before its existence and all the parties to the written agreement know and believe that the person has such authority, and that the written agreement must meet all the requirements of a contract including offer, acceptance, consideration and certainty of essential terms. ...

Consequently, while CPP contributions that are required to be paid during the leave period are to be deducted and remitted by the trustee as by any other employer, CPP contributions paid in the year prior to the leave period must be taken into consideration by the trustee. ... However, since CPP contributions made during the year prior to the leave period are to be taken into-consideration by the trustee, the amount of contributory earnings reported by the trustee may not coincide with the earnings reported in box "C" for that particular year. ...

It remains a question of fact as to whether a guarantee was given by a limited partner for no consideration as the partner could have given the guarantee as part of the consideration given by him in exchange for his interest in the partnership. ...