Search - consideration

Principal Issues: If the taxpayer receives a demand non-interest bearing promissory note as consideration for property transferred to a spousal trust, will the adjusted cost base of the promissory note be equal to the stated value of the note (which should also be equal to its fair market value)? ... Your view- Questions 1 and 2 You are of the view that subsection 73(1) will continue to apply since subsection 73(1) does not preclude a taxpayer from receiving a note or similar debt instrument as consideration for the transferred property. ... In our view, this provision applies whether or not the taxpayer receives a promissory note or other consideration for the property transferred. ...

The two promissory notes issued by TC1 will be referred to as the "TC1 Consideration Notes" and the two promissory notes issued by Subco2 will be referred to as the "Subco2 Consideration Notes". ... In connection with the winding-up of DC, DC will distribute the TC1 Consideration Notes and the TC1 Redemption Note to TC1 and the Subco2 Consideration Notes and the Subco2 Redemption Note to TC2. As a result of the assignment and distribution of the TC1 Consideration Notes and the TC1 Redemption Note to TC1, the obligations under each such promissory note will be cancelled. ...

The Disposition occurred on XXXXXXXXXX and the consideration received by XCo XXXXXXXXXX. The proceeds of disposition to XCo for purposes of the Act was equal the FMV of the consideration received. ... The total principal amount of the ACo Debt was approximately $XXXXXXXXXX; (i) AcquisitionCo acquired the XXXXXXXXXX Consideration from XAmalco; and (j) AcquisitionCo transferred the XXXXXXXXXX Consideration to each holder of XXXXXXXXXX Notes in exchange for and in cancellation of such notes. 15. ...

(c) On XXXXXXXXXX sold its XXXXXXXXXX portfolio to an arm's-length third party in consideration for cash equal to the fair market value of the portfolio. ... (d) XXXXXXXXXX sold XXXXXXXXXX operations to arm's-length third parties in consideration for cash equal to the fair market value of such assets. ... (f) XXXXXXXXXX will sell all of the shares of each of XXXXXXXXXX to XXXXXXXXXX in consideration for cash equal to the fair market value of such shares. ...

On or before XXXXXXXXXX, and immediately before the transactions described below, US Subco will purchase the following assets from various members of Group A at their FMV and issue the following FMV consideration: i) shares of USco 7 from USco 3 for sole consideration consisting of US$XXXXXXXXXX in cash; ii) the Group A-1 Assets from USco 13 for sole consideration consisting of XXXXXXXXXX newly issued common shares of US Subco with a FMV of US$XXXXXXXXXX; and iii) the Group A-2 Assets from USco 18 for consideration consisting of XXXXXXXXXX newly issued common shares of US Subco with a FMV of US$XXXXXXXXXX, US$XXXXXXXXXX in cash and US$XXXXXXXXXX newly issued non-voting preferred shares of US Subco with a FMV of US$XXXXXXXXXX As a result of the above, the aggregate purchase price for the above assets acquired by US Subco will be equal to their aggregate FMV of US$XXXXXXXXXX and the aggregate FMV consideration to be paid by US Subco in respect of these assets will consist of US$XXXXXXXXXX of common shares of US Subco, US$XXXXXXXXXX of non-voting preferred shares of US Subco and cash of US$XXXXXXXXXX. 13. Newco US will then purchase all the issued and outstanding common shares of US Subco for their FMV in exchange for cash and/or common shares of Newco US that have a FMV equal to the US Subco shares so acquired by Newco US as follows: i) USco 13 will transfer its XXXXXXXXXX common shares of US Subco to Newco US for sole consideration consisting of XXXXXXXXXX newly issued common shares of Newco US with a FMV of US$XXXXXXXXXX; ii) USco 18 will transfer its XXXXXXXXXX common shares of US Subco to Newco US for sole consideration consisting of XXXXXXXXXX newly issued common shares of Newco US with a FMV of US$XXXXXXXXXX; and iii) USco 4 will transfer its XXXXXXXXXX common shares of US Subco to Newco US for sole consideration consisting of US$XXXXXXXXXX in cash. ... As sole consideration therefor, Pubco will issue notes payable with an aggregate principal amount and FMV of US$XXXXXXXXXX (the "Pubco Notes"). ...

On XXXXXXXXXX, Profitco subscribed for an additional XXXXXXXXXX common shares of Lossco for consideration of $XXXXXXXXXX and, during XXXXXXXXXX, Profitco subscribed for an additional XXXXXXXXXX common shares of Lossco for consideration of $XXXXXXXXXX. ... Forco 2 will acquire all the shares of Lossco held by Forco 3 for fair market value consideration. ... Newco will then redeem the Class B shares issued to Lossco as described in paragraph 17 above for cash consideration equal to their fair market value. 19. ...

Position: To the extent the fee represents consideration for items described within subparagraphs 212(1)(d)(i),(ii) and (iv), and does not represent consideration for copyright in subparagraph 212(1)(d)(vi) the fee will, subject to the U.S Treaty, be subject to withholding. ... Our Comments At the outset, we believe the application of paragraph 212(1)(d) of the Act in these circumstances depends on whether the PLF is characterized as consideration for the Procurement Rights or as additional consideration for the Franchise Rights. ... In our view, those obligations are consideration for the grant and the continued use of the Franchise Rights. ...

The CANCO4 Shares are all owned by CANCO1, having been purchased from an arm's length party on XXXXXXXXXX for a cash consideration of $XXXXXXXXXX. ... Each asset which comprises the division will be transferred in exchange for consideration equal to its fair market value. b. ... A will transfer the CANCO1 Subsidiary shares to SUBHOLDCO3 for consideration consisting of preference shares of the capital stock of SUBHOLDCO3 with a fair market value and a redemption amount equal to the fair market value of the CANCO1 Subsidiary shares. a. ...

8 December 1981 Income Tax Severed Letter RCT 85-075 F Unedited CRA Tags 85 RE:     Your memo of October 23, 1981 It is our opinion that in the situation which you described in your above-noted memorandum, the preference shares taken back as part of the consideration under a section 85 rollover would not be considered to be non-share consideration for the purpose of determining the transferor's proceeds of disposition. ...

We are satisfied that the employer request for extension warrants consideration and we are prepared to recommend acceptance. Your favourable consideration of this matter is requested. Yours sincerely, C. ...