Search - consideration

You are enquiring whether or not a general partnership can transfer goodwill pursuant to subsection 85(2) to a taxable Canadian corporation without any tax consequences where the non-share consideration is in excess of the agreed upon amount. ... The assumption of the partnership debt by Corp would be considered non-share consideration received by the partnership. As noted in paragraph 10 of IT-291R3, pursuant to paragraph 85(1)(b), the agreed amount generally cannot be less than the fair market value of the non-share consideration received. ...

GST should be collected and remitted based on the fair market value of the consideration at the time the supply was made. ... We note that GST will be imposed under subsection 165(1) of the ETA, which states that "every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply". The value of consideration upon which tax is imposed under section 165 of the ETA is outlined in subsection 153(1) which states that the value of the consideration, or any part thereof, for a supply shall be deemed to be equal to: (a) where the consideration or that part is expressed in money, the amount of the money; and (b) where the consideration or that part is other than money, the fair market value of the consideration or that part at the time the supply was made. ...

Property was transferred to a qualified donee for consideration in year 1. ... No receipt was issued due to consideration given. In year 11, a valuation was obtained suggesting property gifted could have been divided into sets with one set having a fair market value equal to the cash consideration for the transfer. ... In general, a gift is defined as a voluntary transfer of property without consideration. ...

Position: Yes Reasons: Consideration is received by each member in the form of a promise by the club to repay the sum of $XXXXXXXXXX. ... You have stated that in order for a promise to be enforceable, there must be consideration. ... Black's Law Dictionary defines "consideration" as "the inducement to a contract. ...

Subparagraph 40(2)(g)(ii) of the Act, however, deems the capital loss to be nil where the guarantee was given for no consideration. ... In the noted Bulletins guarantees were given for no consideration to corporations in which the guarantor had an interest. While it is admitted that Bowater and its co-venturer guaranteed for no consideration the debts of Bulkley Valley, they were never called upon to honour this guarantee. ...

The majority of the shares of Target was acquired for cash consideration by Parent Acquisitionco, while the remaining shares of Target were acquired by Parent directly in consideration for shares of Parent. ... The redemption value of a Newco Preferred Share was equal to the FMV of any property received in consideration for its issuance less any consideration received for subsequent reductions of PUC in respect of the share. ... The balance of the consideration for the XXXXXXXXXX Rights was paid in cash. ...

Aco will subscribe for XXXXXXXXXX common shares for Fco for consideration of $XXXXXXXXXX. ... Fco will redeem its preferred shares held by Bco for their redemption value and will issue a promissory note as consideration. Bco will redeem its common shares held by Fco for their redemption value and will issue a promissory note as consideration. ...

The individual received as consideration for the disposition an amount of cash, which is used for personal purposes, and shares of Holdco. ... The individual will receive as consideration for the disposition an amount of $100,000 cash (being the adjusted cost base of H Co. shares) and shares of Holdco. ... The taxpayer must establish the current use in respect of the portion of the outstanding loan balance initially used to purchase the H Co shares with the consideration for the disposition of such share. ...

Estate cannot receive renounced expense under flow-through share provisions where the deceased entered into the flow-through share agreement and gave the consideration for the shares. ... The provision requires the expense to be renounced to the same person who entered into the agreement and paid consideration for the shares. ... We will be bringing the matter to the attention of the Department of Finance for their consideration. ...

Principal Issues: amount paid for purposes of subsection 84(3) where shares are part of consideration Position TAKEN: amount paid is equal to fair market value of non-share consideration plus PUC of shares issued Reasons FOR POSITION TAKEN: paragraph 84(5)(d) 952408 XXXXXXXXXX T. ... Consequently, the amount paid to a shareholder under subsection 84(3) of the Act where shares of a corporation have been repurchased for consideration which includes cash and one or more other shares of the corporation will be equal to the amount of cash plus the increase in the paid-up capital of the class as a result of the share issue. ... In addition, although the term "dividend" as defined in subsection 248(1) of the Act includes a stock dividend, we do not believe that shares received as consideration for the redemption of other shares of a corporation would generally constitute a stock dividend. ...