Search - consideration

In the situation you describe, a corporation (operator) obtains the right to process the tailings (and ownership of the processed product), in consideration for a cash payment and an interest in the processed product (or cash equivalent to the value of the agreed percentage of the processed product) taken back by the owner of the mine. ... Under these circumstances, you have requested our opinion on whether: (a) the right sold by the original owner to the operator is a Canadian resource property as defined in subsection 66(15)(c) of the Act and (b) the interest in the processed product which forms part of the consideration taken back by the owner of the mine represents a source of resource profits to it, under Income Tax Regulation 1204(1)(b)(iii) or (b.1). ...

While number 11 of the proposed Application form indicates that this requirement will be met, we find the third paragraph under the caption "Tax Considerations" to be confusing in this regard and we suggest it be reworded to clearly reflect this requirement. 7. ... In line three of the last paragraph under the caption "Tax Considerations", we suggest that "employment" be inserted before "income". ...

On the understanding that these taxpayers have in fact included the amounts received from the Union in their XXXX income, and in view of the above comments, it is our opinion that consideration should be given to deleting the amounts received by the taxpayers from their XXXX income. ... Since XXXX is requesting an adjustment with respect to a transaction which was completed in 1986, any request for an advance income tax ruling received from this taxpayer would (in all probability) have been denied and would probably have been referred back to your office for consideration. ...

The essentials of the Agreement between XXXX and XXXX as they relate to the XXXX may be summarized as a sale of these shares to XXXX for cash consideration payable monthly over a period commencing XXXX and ending XXXX. ... As consideration for the redemption of the XXXX received a promise to pay as represented by the stream of monthly payments, commencing XXXX and ending XXXX. ...

Accordingly, consideration could be given to deleting the reference here to class 12.We would suggest that the reference here to "as described in section 1100 of the Income Tax Regulations" be deleted. ... Could consideration be given to choosing some consistent terminology so as not to confuse a reader? ...

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. ... Rep)ace "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. ...

XXXX When considering reasonableness of the cash flow guarantee consideration could be given to excluding the mortgage payments because the payment of these is guaranteed by the mortgage guarantee given by XXXX. (5). Provided that the fair market value of a unit was XXXX consideration should be given to allowing the investor to capitalize any portion of the soft costs considered not deductible in XXXX or subsequent taxation years. ...

They also involve daylight loans from arm's length parties or preferred share investments made in consideration of a promissory note where the Jurisdiction permits (province of Quebec). ... Back-to-back arrangements (shares issued in consideration of a promissory note) may be allowed if legally permissible. ...

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. ...

In consideration therefore, the Canadian corporation will receive a limited right to resultant know-how in order to permit it to manufacture and market any resultant product of the SR& ED. ... In TR-47, the general point under consideration was whether Part XIII of the Act would apply to payments by a person resident in Canada to a non-resident where those payments represented the Canadian resident's obligations under a research project carried out jointly by the Canadian resident and the non-resident. ...