Search - consideration

No valuable consideration- no benefit of any kind- to the donor or to anyone designated by the donor may result from the payment" (paragraph 3 of IT-110R2). Unlike other teaching or training, religious training is not viewed as consideration for purposes of the definition of a gift 962770 XXXXXXXXXX A.M. ... No valuable consideration- no benefit of any kind- to the donor or to anyone designated by the donor may result from the payment. ...

With respect to the above situation, we have given consideration as to whether the attendance at the conference by the directors without charge represents remuneration in the nature of directors' fees for the purposes of paragraph 6(1)(c) of the Act (the Act). In this regard, such remuneration normally represents consideration that is for the benefit of the directors personally. ... We also wish to mention that in the above situation, it is our view that even though each of the directors of the non-profit corporation may only receive nominal consideration for the services they provide (or perhaps no consideration), it our view that they could nonetheless be considered to be holding an office or employment as a consequence of the definition in subsection 248(1) of the Act. ...

Reasons FOR POSITION TAKEN: The donation would not be without consideration, since the taxpayers would receive a XXXXXXXXXX in exchange for their donation. ... As indicated in paragraph 3 of Interpretation Bulletin IT-110R2, a gift is a voluntary transfer of property without valuable consideration. ... However, the third condition would not be met as the donation would not be without consideration, since the taxpayers would receive a XXXXXXXXXX in exchange for their donation. ...

In general, a "gift" for purposes of the Income Tax Act ("the Act") means a voluntary transfer of the donor's property without valuable consideration to the donor. ... Similarly, the purchase of donated property or raffle tickets generally does not result in a gift to the charity as the purchaser is receiving consideration for the amount paid. Should an individual choose to pay more than fair market value for a property or other advantage in order to benefit a charity, a gift may be recognized for tax purposes if the value of the consideration and other advantages to the individual fall within the limits stipulated in the draft legislation. ...

Accordingly, it should not, in our view, constitute consideration for a donation made by the employee. ... Your question is whether the entry into the draw constitutes consideration for those employees who actually make donations. Our Comments As stated in paragraph 3 of our Interpretation Bulletin IT-110R3, a gift, for the purposes of sections 110.1 and 118.1 of the Income Tax Act (the "Act"), is a voluntary transfer of property without valuable consideration. ...

If farmer transfers assets to corp including A\R does he report income no matter the consideration? ... Position: 1. 98(5) will apply provided corporate transferee continues to carry on the business of the partnership and uses the partnership property. 2.Income no matter nature of the consideration. 3.Income to partners when realized. ... In this regard we offer the following general comments: (1) It is our opinion that where all the partners in a partnership have transferred their partnership interests to a corporation, subsection 98(5) will apply to the dissolution of the partnership provided the corporate transferee continues to carry on the business of the partnership, using the partnership property formerly belonging to the partnership. (2) Where a taxpayer using the cash method of reporting income transfers all his accounts receivable to a corporation for any consideration that taxpayer would pursuant to subsection 28(5) of the Act include in income the fair market value of amounts received in satisfaction of the debts at the time he ceases to carry on the business of farming. ...

Reasons: Loans were non interest bearing and no adequate consideration received. ... In the situation you described, the loan was non-interest bearing and you do not indicate that any other adequate consideration was received in respect of the loan. ... Whether in a specific case adequate consideration in respect of a loan was received is a question of fact which can only be determined after all the facts and details have been established and reviewed. ...

As sole consideration for the transfer, A Ltd. issues one additional common share to Mr. ... A as consideration for the capital property transfer to it is greater than the fair market value of the transferred property. ... However, it is our view that a benefit may be conferred on a shareholder where the shares taken back by the shareholder as consideration are of a different class or if there are other shareholders of the corporation. ...

The individual incorporates Newco, a taxable Canadian corporation, so that he owns 100% of its issued shares and causes Company A to dispose of all its active business assets to Newco utilizing the provisions of subsection 85(1) of the Act, for consideration less than the fair market value of the assets disposed. ... If the property transferred was owned by Company A when the individual acquired the shares of Company A, favourable rulings would be given only if the consideration referred to was equal to the fair market value of the property transferred at the time the individual acquired the shares of Company A. Similarly, if the adjusted cost base of the property to be transferred is based on a V-day valuation, then the V-day value of the property to be transferred would usually be the appropriate minimum amount of the consideration. ...

Each of the common shareholders of Holdco would transfer all of his shares of Holdco to Newco, using the rollover provisions of subsection 85(1) of the Act, and would receive as consideration one common share of Newco for each common share of Holdco. 5. ... X's shares of Holdco, issuing a promissory note to him as consideration. ... Also, no consideration has been given to other provisions, such as subsections 55(2), 110.6(7), 110.6(8) or 112(3), of the Act, which may apply in a specific situation where dividends are paid or shares are sold. ...