Search - consideration

There remained consideration for remission of taxes under the Financial Administration Act. ... Consideration of requests of this nature involves an extensive and fully objective review of the facts of the particular situation and a careful evaluation of the merits of the request to ensure fair and uniform application of established criteria. ... I can assure you that he will receive the utmost consideration possible in the resolution of his case. ...

This paragraph states: “Where a vendor receives shares for some of the exchanged shares and cash or other consideration for other exchanged shares, subsection 85.1(1) may be utilized in respect of the exchanged shares for which shares were received, as long as the vendor can clearly identify which shares were exchanged for cash or other consideration and which (shares) were exchanged for shares.” Accordingly, it is our view that the term “exchanged shares” in subsection 85.1(1) of the Act refers to shares that may be clearly identified as exchanged for consideration (share or non-share) that also may be clearly identified. ...

As consideration for this transfer, the corporation would issue to the taxpayer preferred shares redeemable and retractable for an amount equal to the fair market value of the rental property at the time of transfer. ... You requested our comments as to whether the preferred shares issued to the taxpayer as consideration for the transfer of the rental property would have a fair market value equal to the fair market value of the rental property, so that paragraph 85(1)(e.1) of the Act would not apply on the transfer of the property to the corporation. ... Provided that in circumstances such as those described, the redemption and retraction amount of the preferred shares issued as consideration for the transferred property is equal to the fair market value of the property immediately before the transfer, the Department will usually be satisfied that no benefit, as described in paragraph 85(1)(e.2) of the Act, has been conferred by virtue of the transfer, notwithstanding the fact that the dividend return on such shares might be low in view of the prevailing market conditions. ...

The agreements between the parties reflecting this arrangement would be examined in order to determine whether, in fact, there is no consideration received from A Co for the use of these vehicles. Even though there may be no cash payment from A Co, there may be equivalent consideration in the form of advertising or promotional service provided by A Co in exchange for the use of the demonstrator cars. ... On the assumption that the value of the consideration for the use of the cars supplied by the manufacturer is the annual cost of leasing a similar vehicles by A Co, that value would be considered as “amounts that may be reasonably regarded as having been payable by the employer to a lessor...” for purposes of the amount to be included in E of the standby charge calculation in subsection 6(2) of the Act. ...

Paragraph 110.6(14)(f) provides that shares issued after June 13, 1988 by a corporation to a taxpayer shall be deemed to be owned immediately before their issue by a person who was not related to the taxpayer unless the shares were issued as consideration for other shares or as part of a transaction or series of transactions involving certain dispositions of property to the corporation. ... Will Revenue Canada comment on whether the "new" shares should be regarded as having been issued as consideration for the "old" shares and, as a result, will not be considered to have been owned by a person not related to the individual taxpayer? Department's Position It is our view that, if shares are considered as a matter of the relevant corporate law to be issued when shares are "changed" in the manner described above, the "new" shares are issued as consideration for other shares for purposes of subparagraph 110.6(14)(f)(i) of the Act. ...

Also, the proposed transactions described in your request involve your company, which is incorporated under the laws of Ontario, issuing shares for consideration consisting of a promissory note.  As discussed, subsection 23(3) of the Business Corporations Act (Ontario) (the "OBCA") provides that a share of a company which is governed by the OBCA can not be issued until the consideration for the share is fully paid and, pursuant to subsection 23(6) of the OBCA, a promissory note or other indebtedness is not acceptable consideration for the issue of a share.  ...

Laurikainen (613) 957-2125 SUBJECT: Application of Subsection 69(3) of the Income Tax Act (the "Act") Further to our telephone conversation of June 16, 1988, the Montreal D.O. has requested our views on whether a loan guarantee made by a Canadian Company on behalf of its wholly-owned U.S. subsidiary for no consideration would be subject to the provisions of subsection 69(3) of the Act. ... Since it is common for a parent company to guarantee the loans of a subsidiary for no consideration, this subsection could have wide spread application. ... We have attached a copy of the correspondence received from XXXX of XXXX for your consideration. for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch ...

There remained consideration for remission of taxes under the Financial Administration Act. ... Consideration of requests of this nature involves an extensive and fully objective review of the facts of the particular situation and a careful evaluation of the merits of the request to ensure fair and uniform application of established criteria. ... I can assure you that he will receive the utmost consideration possible in the resolution of his case. ...

There were no agreements, nor were any contemplated between the guarantor and the corporation respecting any consideration in exchange for the guarantee. ... The Department's position as stated in paragraph 3 of IT-239R2 is that a capital loss arising from honouring a guarantee given for inadequate or for no consideration is nil by virtue of subparagraph 40(2)(g)(ii) of the Act. ... The subsequent carrying charges respecting borrowed funds to discharge the loan would also not be deductible as the guarantor did not receive any consideration for the guarantee and therefore the expenditures would not be considered to be for the purpose of producing income. ...

Mitchell 957-2139 RE Employee Stock Appreciation Rights Paragraph 110(1)(d) Further to our memorandum of March 13, 1986, concerning the issue of stock appreciation rights ("SAR's") and paragraph 110(1)(d) of the Act, we wish to draw to your attention a further consideration in this context. ... Our resolution of that issue will be influenced by the underlying consideration of whether, if such a benefit does fall within subsection 7(1), the deduction provided for in paragraph 110(l)(d) would or should be available to an employee who simply receives cash payment directly pursuant to the terms of an agreement with his employer. ... We would draw to your attention that in the case of Greiner 84 DTC 6073, the Federal Court of Appeal held that a cash payment received in consideration for the surrender of stock option rights was taxable pursuant to paragraph 7(1)(b). ...