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Following our letter to you dated October 30, 1986, this matter was referred to the Publications Division for their consideration in the context of a revision or addition to IT-341R. We have been advised that while the above will be given consideration there is no immediate plan by the Publications Division to revise IT-341R. ...

As consideration for the transfer, XXXXXXXXXX/Bco received non-share consideration consisting of a promissory note and assumption of debt worth $XXXXXXXXXX and XXXXXXXXXX preferred shares with a redemption value of $XXXXXXXXXX. ... As consideration for the transfer, XXXXXXXXXX/Aco received XXXXXXXXXX common shares in XXXXXXXXXX/Cco with a fair market value of $XXXXXXXXXX, and an ACB and paid-up capital of $XXXXXXXXXX. ... The provisions of subsection 85(2.1) will not apply to reduce the paid-up capital of the shares received as consideration in the transfers described in Ruling A above. ...

7 November 2012 Internal T.I. 2012-0465701I7- Subsection 7(1.7) CRA Tags 110(1)(d) 7(1)(b) 7(1.7) Principal Issues: Will the provisions of subsection 7(1.7) apply where employee's hold stock options, the stock options are not exercisable in accordance with the terms of the stock option agreements and the employer pays the employees cash as consideration for the stock options held, in connection with a corporate reorganization that affects the employer's share structure? ... In general terms, subsection 7(1.7) of the Act provides, inter alia, that when an employee receives an amount because a stock option agreement ceases to be exercisable, the employee will be deemed, for purposes of paragraphs 7(1)(b) and 110(1)(d), to have disposed of rights under the stock option agreement and to have received the amount as consideration for the disposition of the rights. As a result, the employee will be deemed to have received a benefit equal to the value of the consideration received minus any amount paid by the employee to acquire the rights under the stock option agreement, and the employee will be eligible for the paragraph 110(1)(d) deduction, provided the conditions therein are satisfied. ...

In such circumstances, does section 160 apply, or is there an exemption because fair market value consideration was paid in the form of shares which were tendered back to the corporation for redemption? ... Subparagraph 160(1)(e)(i) will limit the transferee's liability to the excess of the fair market value of the property transferred over the fair market value of consideration given for the property. ... Subsection 160(1) would not apply to any transfers of property where fair market value consideration is received in return. ...

As indicated in paragraph 3 of Interpretation Bulletin IT-110R2, a gift is a voluntary transfer of property without valuable consideration. A gift can be said to have been made where all of the following conditions are satisfied: (a)property (usually cash) is transferred by a donor to a registered charity; (b)the transfer is voluntary; and (c)no consideration or benefit accrues to the donor or to anyone designated by the donor as a result of the transfer. ... The first condition is not met as the purported donation is made to retailers of kosher-approved food products which are not registered as charities; the second condition is not met as the purported cash donation is part of the cost of the food products and is not made voluntarily; and the third condition is not met as the purported donation is not without consideration since the taxpayers receive food products in exchange for their donation. ...

As indicated in paragraph 3 of Interpretation Bulletin IT-110R2 (a copy of which is enclosed), a gift is a voluntary transfer of property without valuable consideration. A gift can be said to have been made where all of the following conditions are satisfied: (a)property (usually cash) is transferred by a donor to a registered charity; (b)the transfer is voluntary; and (c)no consideration or benefit accrues to the donor or to anyone designated by the donor as a result of the transfer. ... The first condition is not met as the purported donation is made to retailers of kosher-approved food products which are not registered as charities; the second condition is not met as the purported cash donation is part of the cost of the food products and is not made voluntarily; and the third condition is not met as the purported donation is not without consideration since you receive food products in exchange for your donation. ...

Reasons FOR POSITION TAKEN: Unlikely that the donation would be voluntary and the donation would not be without consideration, since it would not be entirely separate from and unrelated to the purchase of XXXXXXXXXX 5-942227 XXXXXXXXXX C.Chouinard Attention: XXXXXXXXXX September 13, 1994 Dear Sir: Re: Gifts to the XXXXXXXXXX We are writing in reply to your letter of August 30, 1994, wherein you requested our comments on the tax status of donations to the XXXXXXXXXX XXXXXXXXXX Our Comments As indicated in paragraph 3 of Interpretation Bulletin IT-110R2 (a copy of which is enclosed), a gift is a voluntary transfer of property without valuable consideration. A gift can be said to have been made where all of the following conditions are satisfied: (a)property (usually cash) is transferred by a donor to a municipality; (b)the transfer is voluntary; and (c)no consideration or benefit accrues to the donor or to anyone designated by the donor as a result of the transfer. ...

As indicated in paragraph 3 of Interpretation Bulletin IT-110R2 (a copy of which is enclosed), a gift is a voluntary transfer of property without valuable consideration. A gift can be said to have been made where all of the following conditions are satisfied: (a)property (usually cash) is transferred by a donor to a registered charity; (b)the transfer is voluntary; and (c)no consideration or benefit accrues to the donor or to anyone designated by the donor as a result of the transfer. ... The first condition is not met as the purported donation is made to retailers of kosher-approved food products which are not registered as charities; the second condition is not met as the purported cash donation is part of the cost of the food products and is not made voluntarily; and the third condition is not met as the purported donation is not without consideration since you receive food products in exchange for your donation. ...

We would particularly draw your attention to the third precondition, the transfer must occur without consideration or benefit accruing to the donor or to anyone designated by the donor. ... It is our view that there is a reasonable argument that the assumption of a mortgage by a recipient would constitute "consideration", being a benefit to the donor to the extent that he is relieved of responsibility for the debt. ... It is our view that the purchase of a Joint and Survivor Life Insurance Policy would not change the fact that the assumption of the mortgage referred to above did constitute "consideration" to the donor. ...

Principal Issues: Where a taxpayer disposes of or exchanges securities in circumstances in which the rollover provisions of subsection 7(1.5) are otherwise meant to apply, will the receipt of non-share, non-cash consideration by the taxpayer deny the application of subsection 7(1.5)? ... Kauppinen April 1, 2003 Dear XXXXXXXXXX: Re: Subsection 7(1.5) of the Income Tax Act ("Act") This is in reply to your letter dated February 12, 2003 regarding the application of subsection 7(1.5) of the Act in situations where non-share, non-cash consideration is received for the disposition of the "exchanged securities" (as defined in subsection 7(1.5) of the Act). ... Paragraph 7(1.5)(b) of the Act clearly states that the taxpayer must receive no consideration for the disposition or exchange of the exchanged securities other than "new securities"(as defined in paragraph 7(1.5)). ...