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You questioned whether on page 2 of the form, share consideration received by the vendor should be detailed under the heading "Consideration Received". It is our understanding that share consideration should be detailed on both page 1 in the area entitled "Description of Shares Received" and on page 2 under the title "Consideration Received". ...

Principal Issues: Whether or not certain dispositions of property to a registered charity for some consideration can result in a gift. ... As previously determined, the assumption of a mortgage by the recipient of the property is consideration Mr. ... The proceeds from the sale of shares for an amount equal to the shares' adjusted cost base in your first situation would constitute valuable consideration. ...

Bonus consideration payments are a disposition of a Canadian Resource Property. ... Income Tax Convention, a bonus consideration payment will be considered to be an exempt gain on disposition of a capital asset. ... Payments of the consideration for a petroleum and natural gas lease, as described in points 3 and 4 of your memorandum, should be treated in the same way as payments of bonus consideration as described in 1 above. 5. ...

There must be an acquisition of shares to which 84(2) or 84(3) was not applicable, 2. consideration must exceed PUC, and 3. one of the main purposes was to enable individual shareholders to realize a distribution of corporate surplus as proceeds of disposition. ... XXX In our view most internal reorganizations which eliminate the "incestuous" shares will clearly result in the consideration being provided by the acquiring corporation. ... As there was never an intention to liquidate, there was never an intention to provide the consideration, and therefore the purpose was not to enable shareholders to realize a distribution of corporate surplus as proceeds of disposition. ...

If the transfer property was acquired before January 1, 1972, the consideration should equal the V-Day value of the transfer property. ... Is the assumption of a liability on purchase of livestock inventory included in non-share consideration? ... A taxpayer has a prior year restricted farm loss carry-forward and, using a subsection 85(1) election, he takes back a promissory note as non-share consideration equal to the losses. ...

Bonus consideration payments are a disposition of a Canadian Resource Property. ... Income Tax Convention, a bonus consideration payment will be considered to be an exempt gain on disposition of a capital asset. ... Payments of the consideration for a petroleum and natural gas lease, as described in points 3 and 4 of your memorandum, should be treated in the same way as payments of bonus consideration as described in 1 above. 5. ...

For purposes of this letter, we assume that no non-share consideration is taken back on such a transfer. ... Where common share consideration only is used, a valuation of the transferred property and of the corporation would be required in order to determine the appropriate number of common shares to be issued. ... Although paragraph 85(1)(e.2) of the Act may favour the use of preferred share consideration, it certainly does not mandate such use in all cases. ...

If the transfer property was acquired before January 1, 1972, the consideration should equal the V-Day value of the transfer property. ... Is the assumption of a liability on purchase of livestock inventory included in non-share consideration? ... A taxpayer has a prior year restricted farm loss carry-forward and, using a subsection 85(1) election, he takes back a promissory note as non-share consideration equal to the losses. ...

The amount of non-share consideration received by the taxpayer is a matter of fact and not an elected amount. The matters agreed to under a roll-over election are the proceeds and cost of eligible properties transferred and not the amount of non-share consideration received or paid in exchange. We note that the taxpayer is not required to file an amended election to revise the stated amount of non-share consideration received as this adjustment is automatic. ...

Consequently, the non-share consideration received in respect of the land will not exceed the tax cost of the land and the non-share consideration received in respect of the building will not exceed the tax cost of the building. ... The promissory note issued as consideration for the land will not exceed the ACB of the land and the promissory note issued as consideration for the building will not exceed the UCC of the building. ... Consequently, the non-share consideration in respect of the XXXXXXXXXX land will not exceed the tax cost of the land and the non-share consideration in respect of the XXXXXXXXXX building will not exceed the tax cost of the building. ...