Search - consideration

You provide the following set of hypothetical facts. 1) Newco, a corporation resident in the United Kingdom, issues a debt instrument (the “Newco Debt”) to its Canadian parent (“Canco”) as consideration for shares of a related United Kingdom company. 2) The interest on the Newco Debt is not deductible in computing taxable income for United Kingdom income tax purposes. 3) The interest on the Newco Debt, when paid will be considered a distribution of a dividend for United Kingdom tax purposes which requires the payer (Newco) to withhold and remit advance corporations tax (“ACT”). ...

I note that his letter has previously been forwarded to the Department of Finance for their consideration. ...

You presented a hypothetical scenario for our consideration and the facts of that scenario are restated more generally as follows: A man died in late 1971 and a testamentary trust was created for the benefit of his wife and children. ...

A wishes to convey, for natural love and affection with no monetary consideration, a life estate in the real property to person B, for the life of A. ...

Furthermore, the same analysis has to take into consideration the possible application of any of provisions in paragraphs 251(2)(b) and (c) of the Act. ...

As indicated in paragraph 3 of Interpretation Bulletin IT-110R3 (copy enclosed) a gift is a voluntary transfer of property without valuable consideration. ...

This is something that may warrant further review so you might consider referring the matter to the local T.S.O. for consideration on audit. ...

Réponse du ministère du Revenu Le bulletin d’interprétation IT-169 existe depuis longtemps (daté du 6 août 1974) et ne semble pas prendre en considération tous les types de clauses d’ajustement du prix ni toutes les situations où des clauses d’ajustement du prix sont maintenant habituellement utilisées. ...

In this respect, we note that: (i) brothers and sisters are deemed not to be related to each other by virtue of subparagraph 55(5)(e)(i); (ii) subject to subsection 55(4), if two corporations are related to the same corporation, they will be deemed to be related to each other by virtue of subsection 251(3); and (iii) there will be a significant increase in the total direct interest in any corporation within the meaning of subparagraph 55(3)(a)(ii) where an “unrelated person” subscribes for the shares of a new corporation or acquires shares of a corporation (which represent a significant proportion of the outstanding shares of the corporation or a significant dollar value) in consideration for the transfer of property (other than corporate shares disposed of for proceeds of disposition that are not less than their fair market value) to the corporation. 2. ...

We would like to assure you that the points set out in your December 18, 1998 letter were taken under consideration in determining the Canadian tax consequences of this spin-off to the Canadian shareholders of XXXXXXXXXX. ...