Search - consideration

Mco will incorporate a new wholly owned subsidiary, Oco by subscribing for common shares for nominal consideration. 23. ... Mco will dispose of its remaining common shares of Nco (having a fair market value of $XXXXXXXXXX) to Oco and Oco will issue common shares (having a fair market value of $XXXXXXXXXX) to Nco as consideration for the common shares of Nco. ... Due to the XXXXXXXXXX controlled foreign affiliate rules, Mco is precluded from the direct method of leveraging (i.e. transfer its Nco shares to Oco for a $XXXXXXXXXX interest bearing loan and $XXXXXXXXXX in share consideration). ...

The CICA Handbook defines "cost" as the following: "Cost is the amount of consideration given up to acquire, construct, develop or better a capital asset and includes all costs directly attributable to the acquisition, construction, development or betterment of the capital asset including installing it at the location and in condition necessary for its intended use. ... Since the obligation to provide information to the province was part of the consideration the company assumed to obtain the cutting rights, the expenditures were capital expenditures. ... Commissioner of Income Tax [1937] A.C. 685: "In short, the obligation to make these payments was undertaken by the appellants in consideration of their acquisition of the right and opportunity to earn profits, that is, of the right to conduct the business, and not for the purpose of producing profits in the conduct of the business. ...

X took XXXXXXXXXX A's XXXXXXXXXX into consideration at the time she completed her Will in allowing XXXXXXXXXX A the discretion to allocate her share of the Estate to the charities of her choosing. 13) Notice of the Application was given to all affected parties including the Department of Justice as solicitors for the CCRA. 14) The Application was heard by XXXXXXXXXX on XXXXXXXXXX with counsel from the Department of Justice on behalf of the CCRA, present. ... The solicitors for the Estate noted a potential inconsistency in the Order and a draft amended order was prepared and delivered to the Department of Justice for consideration, review and consent. Such consent was obtained and the Court granted the Amended Order. 15) Paragraph XXXXXXXXXX of the Amended Order reads: "XXXXXXXXXX. 16) Paragraph XXXXXXXXXX of the Amended Order incorporates the directions of XXXXXXXXXX A as to the institutions that are to receive the XXXXXXXXXX share of the residue of the Estate. 17) Since one of the institutions named in paragraph XXXXXXXXXX of the Amended Order was not a registered charity and two other of the institutions were referred to by a name other than their respective legal names, a draft amended amended order to revise paragraph XXXXXXXXXX of the Amended Order was prepared and delivered to the Department of Justice for consideration, review and consent. ...

Subsection 6(3) I.T.A. provides that an amount received by one person from another, among other things, in payment of an obligation arising out of an agreement made by the payer with the payee immediately prior to, during or immediately after a period that the payee was in the employment of the payer, shall be deemed, for the purposes of section 5 I.T.A. to be remuneration for the payee's services rendered during the period of employment, if it is reasonable to consider the amount as having been received pursuant to paragraph (c) as consideration for accepting the office, pursuant to paragraph (d) as remuneration under the contract of employment, or pursuant to paragraph (e) in consideration or partial consideration for a covenant with reference to what the employee is, or is not, to do before or after the termination of the employment. ...

Generally, a plan will be considered a superannuation or pension fund 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 payments on or after the employee's retirement in consideration for his or her employment services. ... An annuity or other periodical payment made, esp. by a government, a company, or an employer of labour, in consideration of past services. ...

Cco will transfer to Qco all of its Oco XXXXXXXXXX Common Shares in consideration for Qco Common Shares having a fair market value equal to the fair market value of the Oco XXXXXXXXXX Common Shares so transferred. Each holder of Oco XXXXXXXXXX Shares will transfer all of his or her Oco XXXXXXXXXX Shares to Qco in consideration for Qco XXXXXXXXXX Shares having a fair market value equal to the fair market value of the Oco XXXXXXXXXX Shares so transferred. Each holder of Oco XXXXXXXXXX Shares will transfer all of his Oco XXXXXXXXXX Shares to Qco in consideration for Qco XXXXXXXXXX Shares having a fair market value equal to the fair market value of the Oco XXXXXXXXXX Shares so transferred. ...

The Developer was presented with a number of potential development scenarios for consideration.? ... XXXXXXXXXX made a submission on behalf of Developer to ensure that the Land was identified in the City's Staging of Development Report and would be scheduled for consideration in XXXXXXXXXX. ... XXXXXXXXXX submitted a complete application and supporting plans and reports that are required prior to consideration of the applications for plan of subdivision draft plan approval and rezoning.? ...

The situation may be slightly different for rollover provisions other than s. 86.1; the wording of such provisions may allow us more flexibility with respect to share rights as non-share consideration. ... We acknowledge that although the wording of section 86.1 of the Act is slightly different than that in other rollover provisions in the Act that require that only share consideration be received by the taxpayer (for example, subsections 51(1), 85.1(1) and 87(4) of the Act), any final position we take on this matter may have an impact on our interpretation of such provisions. ... We strongly recommend that anyone who has a client who will be receiving share rights in the course of a particular reorganization involving one of the domestic rollover provisions described above (i.e., that requires that no non-share consideration be received by the taxpayer), consider requesting an advance income tax ruling. ...

On the same day, Sib3's estate transferred (without consideration) XXXXXXXXXX Opco shares to each of Sib1 and Sib2 in satisfaction of all or part of their respective capital interests in Sib3's estate. 11. ... Newco will issue a nominal number of common shares to Sib1 on incorporation for nominal cash consideration. 14. ... As consideration for the transfer, Newco will issue a promissory note and XXXXXXXXXX common shares to Sib1. ...

Our Comments Under subparagraph 40(2)(g)(ii) of the Act, a taxpayer's loss arising from the disposition of a debt is nil (and therefore cannot result in a capital loss) unless the debt had been (i) acquired by the taxpayer for the purpose of gaining or producing income from a business or property (other than exempt income); or (ii) acquired as consideration for the disposition of capital property in an arm's length transaction. ... That paragraph states: "Where a taxpayer has loaned money at less than a reasonable rate of interest to a Canadian corporation of which he is a shareholder, or to its Canadian subsidiary, or has guaranteed the debts of such a corporation for inadequate consideration, any subsequent loss arising to him from the inability of the corporation to discharge its obligations to him, or from having to honour the guarantee, may be a deductible capital loss to him despite the absence of a reasonable rate of interest or adequate consideration. ...