Search - consideration

In determining whether an employee/shareholder is in receipt of a benefit in a particular taxation year consideration will be given to the premiums paid by an employee/shareholder, if any, under the policy and the premium cost for equivalent term coverage. ...

However, after careful consideration of the circumstances, it is regretted that a recommendation cannot be made for the remission of the unpaid taxes and interest described in your letter of July 5, 1989 to The Honourable Harvie Andre. 24(1) While the situation may be considered to be unfortunate, I have not found any indication that the assessments arose for reasons that would not apply to other taxpayers in similar circumstances or that any unfairness was involved with regard to the application of the law. ...

Shares of the capital stock of Mergeco are the only consideration received by FA-1, as a result of the merger and immediately after such merger Mergeco is a foreign affiliate of Canco. 7) In filing its income tax return for its taxation year ending December 31, 1980 Canco did not claim (under 95(2)(d)(iv) and 95(4)(c) of the Act) a relevant cost base greater than the ACB to FA-1 of the FA-2 and FA-3 shares. 8) During its taxation year ending June 30, 1980, FA-1 sold the Mergeco shares. 9) During the period in which it could file a notice of objection, in respect of its taxation year ending December 31, 1980 Canco writes a letter (to the Director of the District Taxation Office in which it files its income tax return) claiming, a) in respect of the FA-2 shares, a relevant cost base greater than the aggregate ACB to FA-1 of such FA-2 shares; and b) in respect of the FA-3 shares, a relevant cost base greater than the aggregate ACB to FA-1 of such FA-3 shares. ...

In its answer to Question 7 of the 1988 Canadian Tax Foundation National Tax Conference, the Department stated its position that where the corporate law stated capital is maintained in a foreign currency, the starting point in the calculation of paid-up capital for tax purposes is the Canadian dollar equivalent of the consideration for which the shares were issued, computed at exchange rates prevailing at the time the shares were issued. ...

Where preferred shares are taken back as part of the consideration and these shares have not sufficient investment qualities to warrant valuation at the par value for which they were issued, an arm's-length purchaser would demand a discount for the deficiency, and this view is shared by the Valuation Section. ...

Our Comments In the response to Question 34 of the Revenue Canada Round Table at the 1990 Annual Conference of the Canadian Tax Foundation, the Department stated that it is not its intention to apply paragraph 85(1)(e.2) of the Act to a "classic" estate freeze provided that the transferor receives retractable preference shares with a value equal to the difference between the fair market value of the transferred property and any other consideration taken back. ...

Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information Of necessity, the application of such an avoidance provision must be considered on a case by case basis with consideration of the facts of each particular circumstance. ...

Holloway 24(1) (613) 957-8953 Attention: 19(1) July 16, 1992 Dear Sirs: Re: Cash Basis Farmer and Promissory Notes due on Demand This is in reply to your letter dated December 27, 1991, enquiring when a cash basis farmer would have to report a sale if the consideration received is a promissory note due and payable 30 days after demand. ...

We are not aware of any provisions in the Act which address your enquiry and accordingly, we have referred the matter to the Department of Finance for their consideration. ...

It is the use made of the borrowed funds in the particular year rather than the initial use of the funds which must be taken in consideration in determining whether the interest paid or payable with respect to the borrowed funds will be deductible in the particular year. ...