Search - consideration

In exchange for their shares of XYCo, X receives only shares of Amalco and Y receives a nominal amount of shares of Amalco and non-share consideration. ... The provisions of subsection 87(4) of the Act will not apply to Y since Y received consideration other than shares of Amalco. ... In exchange for their shares of XYCo, X and Holdco receive only shares of Amalco and Y receives a nominal amount of shares of Amalco and non-share consideration. ...

You expressed the view that the foundation would, by virtue of subsection 149.1(12) of the Act, be deemed not to have acquired control of the corporation since it has not given any consideration for the shares. ... However, on the acquisition of the common shares by virtue of the conversion of the preferred shares to common shares, the foundation would be providing the preferred shares as consideration. ... Thus, the acquisition of control by a foundation of a corporation would not automatically result in the foundation's registration being revoked; however, it could very well lead to that result following consideration of the relevant facts. ...

In determining whether an individual expense is reasonable "in the circumstances" one would look to the amount sought to be deducted, the purpose of the expenditure, the nature of the expenditure, the similarity to and amount of other such expenses claimed, expenses of other employees or officers employed in a similar capacity, and so on, including consideration of any tax free allowances which may have been received where the allowance has been received for the purpose of defraying the type of expenditure which is being deducted. ... (Tax Appeal Board) 58 DTC 307, the Board considered as unreasonable a claim of $22,500 for advertising expenses incurred by a lumber company in sponsoring local sports events and reduced the deduction to $5,000, having given consideration to the size of the taxpayer's business, the patronage to be expected, the form of the advertising, the locality and the size of the population reached by the advertising. ... Having said that, however, where a member sought to deduct an expense for which a tax free allowance had been received and the purpose of the allowance was to defray that type of expense for which the member sought a deduction, the fact that a tax free allowance had been received would be taken into consideration in determining the "reasonableness" of the deduction. ...

As part of the consideration for the transfer, the corporation assumed the builder's holdbacks. ... You requested our opinion as to whether the builder's holdbacks (that were assumed by the corporation) would constitute non-share consideration given by the corporation to the builder with respect to the transfer under subsection 85(1). ... In our view, the fair market value of the builder's holdbacks at the time they were assumed should form part of the agreed amount with respect to the transfer, as such assumption by the corporation would constitute non-share consideration given by the corporation to the builder for the purposes of subsection 85(1). ...

Husband and Wife purchased 51 and 49 common shares, respectively, for nominal consideration, representing 100% of the issued share capital stock of Opco;- On January 1, 2003 the partnership transferred all of its assets to, and had all of its liabilities assumed by Opco. ... Husband and Wife purchase 51 and 49 common shares respectively for nominal consideration, representing 100% of the issued share capital of Newco;- On January 1, 2005, Husband sells his partnership interest to Newco. ... As consideration therefor, Husband takes back a note with a principal amount equal to the elected amount and receives redeemable, retractable preferred shares in Newco with a redemption amount equal to the excess of the fair market value of the partnership interest over the elected amount. ...

In general terms, this exception applies where an employer has incurred an expense or made an outlay as consideration for group term life insurance in respect of a period that ends more than 13 months after the consideration is made. ...

Reasons: The remuneration is ascertainable and is likely received in consideration for services rendered in the office of executor. ... In our opinion, the fees you received are likely consideration for services rendered in your office as executor. ...

The shares issued by the corporation result from a transfer to the corporation, to which subsection 85(1) of the Act applies, of shares held by a shareholder in that same corporation in consideration for shares only of the corporation.  ... You also indicated that the aggregate PUC of the shares issued by the corporation in consideration for the transfer is equal to the PUC of the shares transferred by the shareholder. ...

Seidel Attention: XXXXXXXXXX March 22, 1994 Dear Sirs: This is in reply to your letter submitted by facsimile on March 10, 1994 with respect to the application of section 85.1 of the Income Tax Act S.C. 1970-71-72,c.63 as amended consolidated to June 10, 1993 (the "Act") in the situation where a taxpayer exchanges shares of a taxable Canadian corporation that are capital property for non-share consideration and shares of another taxable Canadian corporation. ... Paragraph 7 of IT-450R discusses the situation where a vendor receives shares of the purchaser for some of the exchanged shares and cash or other consideration for other exchanged shares. ...

The options are received in respect of an employment where the options are granted to directors in consideration for the services to be performed as directors. ... It is our view that options are received in respect of an employment where the options are granted to directors in consideration for the services to be performed as directors. ...