Search - consideration

Consequently, subparagraph 66.1(6)(a)(iv) operates for partners to receive their share of the CEE incurred by partnerships in consideration for flow-through shares. ... In other words, expenses which are CEE by virtue of subparagraphs (i) to (iii.1) would be disqualified from treatment as CEE if the expenses were incurred in consideration for shares of a corporation. ... Consequently, subparagraph 66.1(6)(a)(iv) operates for partners to receive their share of the CEE incurred by partnerships in consideration for flow-through shares because such CEE referred to in subparagraph (v) is identical to that in (iv). ...

Position: Either of subsections 6(1) or 15(1) of the Act may apply to include in the income of the individual, as the case may be, the amount by which the fair market value of the policy exceeds any actual consideration paid by the individual for the policy. ... Upon its renewal, the policy is transferred to the employee for no consideration under subsection 148(7) of the Act. ... Can the CRA confirm that, since the key employee has effectively been paying the premium under the policy in the form of a taxable benefit, that no employee benefit will arise on the transfer of the policy to the key employee for no consideration? ...

The consideration to be received by XXXX According to the schedule provided in your request, the consideration to be received is significantly less than the current fair market value of the property being transferred. ... This paragraph operates to deny the capital gains deduction to an individual where a capital gain has been realized from the disposition of property as part of a series of transactions in which any property is acquired by a corporation for consideration that does not approximate its fair market value at the time of acquisition. It should be noted that the draft legislation to implement the income tax reform measures proposes to amend this provision to apply in situations where the consideration received is significantly less than the fair market value of the property at the time of acquisition. ...

A personal trust as defined in subsection 248(1) of the Act includes an inter vivos trust in which no beneficial interest was acquired for consideration payable to the trust or to any person who has made a contribution to the trust. It is your view that a self-directed RRSP trust meets this definition because it is an inter vivos trust in which no beneficial interest was acquired for consideration. You have indicated that since all of the beneficial interests in such a trust are acquired by one person, subparagraph (b)(iii) of the definition deems the beneficial interest to be acquired for no consideration. ...

In such cases, there would be dispositions of the property for proceeds equal to the fair market value of the consideration received. It is necessary to distinguish property "settled" on the trust for nil proceeds from property sold to a trust in return for valuable consideration." ... In your opinion, paragraph 54(c)(v) of the Act can be applicable to a transfer to a trust whether or not there is consideration. ...

Shares transferred to spouse for no consideration. No 74.5(1) election. ... Shares have been disposed of and no consideration received. 2. Depends on fair market value of shares at time of disposition. ... When the property is disposed of for consideration which is less than the fair market value of the property, the excess of the amount of the borrowed money over the fair market value of the property at the time of disposition will be deemed to be used for the purpose of earning income and, consequently, the interest expense on that excess amount will continue to be deductible pursuant to paragraph 20(1)(c) of the Act. ...

Each year some of the employees of Corporation A are offered non-voting common shares of Corporation B for no consideration. ... the transaction was a gift for no consideration or a transaction between the employer and employees for consideration (i.e.- for services rendered). Generally, transactions between an employer and arm's length employees occur by virtue of their employment and are for consideration (i.e.- they are not gifts). ...

19 September 1991 Ruling 91M09121 F- Dividends and Section 160 Unedited CRA Tags 160(1)(e)(i) QUESTION 48- DIVIDENDS AND SECTION 160 QUESTION Under subparagraph 160(1)(e)(i) of the Act, a non-arm's length transferee of property may be liable jointly with the transferor  and is limited to the amount by which the value of the transferred  property exceeds the value of any consideration given for the property.  ... Does Revenue Canada agree that for the purposes of subparagraph 160(1)(e)(i) of the Act (a)  the declaration of the dividend does not constitute a  transfer of property, and (b)  the extinguishment of the corporate debt on payment of the dividend constitutes valuable consideration given for the dividend? ... The purpose of this paragraph to prevent a person with substantial income tax liability from defeating the claims made on him by transferring his property to any non-arm's length party at less than fair market value consideration. ...

It is your opinion that paragraph 110.6(7)(b) of the Act would not apply because consideration referred to in the paragraph is not the amount agreed upon (the "elected amount") referred to in subsection 85(1) of the Act. ... We agree that the term "consideration" as referred to in paragraph 110.6(7)(b) of the Act does not mean the elected amount referred to in subsection 85(1) of the Act. ... However, if the total consideration received by a transferor is significantly less than the fair market value of the property transferred in a transaction governed by section 85 of the Act, paragraph 85(1)(e.2) of the Act would apply in addition to paragraph 110.6(7)(b) of the Act. ...

During a reorganization of capita1 by XXXX the corporation redeems all of its common shares and in return issues new common shares and certain non-share consideration. ... In this case, as the fair market value of the non-share consideration received exceeds the ACB of to XXXX of his old shares of XXXX the ACB of his new shares will be nil and the proceeds of disposition of his old shares will be equal to the fair market value of the non-share consideration received. The resulting capital gain should be computed in Canadian dollars and the relative U.S. dollar amounts should be converted to Canadian dollars at the rate of exchange in effect at the time XXXX acquired the old shares to determine his ACB and at the time XXXX received the non-share consideration on the recapitalization of XXXX to determine proceeds of disposition. ...