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Kauppinen June 29, 1999 Dear XXXXXXXXXX: Re: Transfer of RRSP funds to a Charitable Remainder Trust ("CRT") This is in reply to your letter dated January 26, 1999 wherein you requested our opinion as to whether amounts earned on accumulated contributions to an RRSP could be transferred, for no consideration, to a CRT without immediate adverse income tax consequences. ... We suggest that you write to the Department of Finance since that Department is responsible for the consideration of tax policy issues of this nature. ...

Where the shares are converted to another class of shares and the provision of subsection 86(1) of the Act apply to the shareholder, and the shareholder has not received any non- share consideration, we would expect the interest expense on his debt to continue to be deductible. However, if the shareholder receives non-share consideration, the deductible interest expense would be reduced accordingly. ...

A gift, for purposes of sections 110.1 and 118.1 of the Income Tax Act (the Act) is a voluntary transfer of property without valuable consideration.  ... It would be a question of fact whether a   24(1)   presented to a donor sometime after the donation to the Crown of the donor's interest in the additional   24(1)   was a gift unrelated to the initial donation or delayed consideration for the initial payment in respect of the purchase from you of the interest in the additional  24(1) We trust our comments will be of assistance to you. ...

In this regard, the plan must contain the following basic elements: (a) an undertaking by one person, (b) to indemnify another person, (c) for an agreed consideration, (d) from a loss or liability in respect of an event, (e) the happening of which is uncertain. ... In our view, a plan that consists of a contract between an individual and an insurance company, under which the insurance company agrees to reimburse the individual for actual medical and hospital expenses and receives, as consideration, premiums based on reasonable actuarial and underwriting principles, could qualify as a plan in the nature of insurance as set out in paragraph 3 of IT-339R2. 3) In our view, a plan that consists of a contract between an individual and a professional association (the taxable income of which is exempt under subsection 149(1) of the Act), where- the professional association would act as a group insurance policyholder of a contract underwritten by a licensed insurer and- all participating individuals would be members of the professional association, under which the licensed insurer agrees to reimburse the participating individual, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, premiums based on reasonable actuarial and underwriting principles, could qualify as a plan in the nature of insurance as set out in paragraph 3 of IT-339R2. 4) In our view, a plan that consists of a contract between an individual and a professional association (the taxable income of which is exempt under subsection 149(1) of the Act), under which the professional association agrees to reimburse the individual, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, a premium that is adjusted annually to reflect the previous year's deficits and surpluses, could qualify as a plan in the nature of insurance as set out in paragraph 3 of IT-339R2. ... In our view, a plan that consists of a contract between an individual and a professional association (the taxable income of which is exempt under subsection 149(1) of the Act), under which the professional association agrees to reimburse the individual, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, a "cost plus" amount, would not qualify as a PHSP since it does not contain the necessary elements of insurance. ...

Reasons: The payments are in consideration for services rendered according to our understanding of the contractual relationship between the "Intended Parents" (the payors) and the "Gestational Carrier" (the beneficiary). ... In the case submitted, however, the payments cannot be said to be gifts, that is, voluntary transfers of real or personal property without consideration, since they are required under the surrogacy contract. ... Moreover, the payments are not "without consideration" as the Intended Parents do receive valuable services in exchange, without which no payments would be made. ...

5 June 2013 External T.I. 2013-0481381E5- Transfer of Life Insurance Policy CRA Tags 148(8) Principal Issues: Whether ITA 148(8) applies to the transfer of a policy where the policyholders are the parents of the life insured (son) under the policy and the policy is transferred to their son for no consideration? ... Our Comments Subsection 148(8) of the Act provides that, if an interest of a policyholder in a life insurance policy (other than an annuity contract) is transferred to the policyholder's child for no consideration and a child of the policyholder is the person whose life is insured under the policy, the interest is deemed to have been disposed of by the policyholder for proceeds of the disposition equal to the adjusted cost basis of the interest immediately before the transfer, and to have been acquired by the person who acquired the interest at a cost equal to those proceeds. ...

In consideration for the transfer of the Opco shares, the husband and wife each received preferred shares of a class. The husband and wife had all of the outstanding preferred shares and common shares of a class, except that 2% of the common shares were issued to their children for no consideration. ...

Subsection 148(8) of the Act generally applies where a policyholder transfers a life insurance policy, for no consideration, to a child of the policyholder and either a child of the policyholder or a child of the transferee is the life insured under the policy. In the situation described, it is our general view that subsection 148(8) of the Act would apply to the transfer of the policy from the parent to the child provided the child is the only life insured under the policy at the time the policy is transferred for no consideration to the child. ...

Subsection 6(3) of the Act deems an amount received, pursuant to an agreement made immediately before, during or immediately after the period that the payee was employed by the payer, to be remuneration for services rendered during the period of employment where the amount can reasonably be considered to be received as consideration or partial consideration for a covenant with reference to what the payee is, or is not, to do before or after the termination of the employment. ...

Subsection 206(4) of the Income Tax Act (the “Act”) provides that where an RRSP, RRIF or other taxpayer, as noted therein, acquires a property from a person with whom the taxpayer was not dealing at arm’s length, for no consideration or for consideration that is less than the fair market value of the property at the time, the taxpayer will be deemed to have acquired the property at its fair market value. ...