Search - consideration

However, consideration may be given to the possible application of section 245 of the Act ["GAAR"],depending on the particular circumstances. 3. ... In this general reply, we do not know why the transferor would transfer assets for less than fair market value consideration. ... However, consideration may be given to the possible application of section 245 of the Act ["GAAR"], depending on the particular circumstances and the reason why the taxpayer agreed to only receive a nominal interest in the partnership when such an Excess existed. ...

X has not commenced to use the surface right for the purpose of gaining or producing income therefrom in the absence of there being any income from a business or property- in this regard, consideration should be given to our comments regarding "carrying on business" which appear under the heading "Royalties". ... X is entitled to receive such a payment, he would be required to include the payment received in the calculation of his CCDE pursuant to subparagragh 66.2(5)(b)(v) of the Act after giving due consideration to whether a portion of the payment should instead be allocated to proceeds of disposition in respect of the surface right. ... X of the amount of the annual rent is nothing more than additional consideration for granting the profit a prendre to Mineco- not a true "rental" but rather a payment analogous to exercising an option- and should be included by Mr. ...

You asked us to consider the following hypothetical fact pattern: Canco and USCo are sister companies; A third-party loan is made to Canco and a guarantee on the loan is provided by USCo for no consideration; Canco also receives a loan from its indirect Canadian parent company, and USCo also provides a guarantee on this loan for no consideration. ... Our Comments When the notional guarantee fees are imputed by subsection 247(2) of the Act, paragraph 214(15)(a) of the Act is triggered to deem the amount paid or credited as consideration for the guarantee, to be a payment of interest. ... A literal or legalistic interpretation must be avoided when the basic object of the treaty might be defeated or frustrated in so far as the particular item under consideration is concerned. ...

29 October 2013 External T.I. 2013-0507881E5- Price adjustment clause CRA Tags 16(1) 84(3) 162 163 Principal Issues: Preferred shares are issued to a taxpayer in consideration for property. ... Pursuant to a price adjustment clause contained in the articles of incorporation, the redemption value of the preferred shares would be adjusted to reflect the fair market value of the consideration if the amount considered to be the fair market value is changed. ... Hypothetical scenario In year 1, there is an issuance in favour of a taxpayer of preferred shares of the capital stock of Opco with a redemption value equal to the fair market value ("FMV") of the property given by the taxpayer in consideration for the issuance of those shares. ...

However, in general, a plan will be considered to be a superannuation or pension plan or fund where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and the contributions are used to provide an annuity or other periodical payment on or after the employee’s retirement in consideration for his or her employment services, and in some cases, where amounts have been contributed under the plan by a government. ... Paragraph (m) – if the interest in the non-resident trust was not acquired for consideration by the taxpayer, or certain other persons. The employee’s interest in the Super Fund does not meet this exception because the employee’s contributions to the Super Fund constitute “consideration” for the acquisition of the interest in the trust. ...

Also, you are of the view that the payments received as consideration for the services would not be considered royalties within the meaning of paragraph 4 of Article XII of the Convention. ... The term "royalties" is defined as follows in paragraph 4 of Article XII of the Convention: "(a) payments of any kind received as a consideration for the use of, or the right to use, any copyright, patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment and includes payments of any kind in respect of motion picture films and works on film or videotape for use in connection with television; (b) payments received as consideration for technical know how or information concerning industrial, commercial or scientific experience." As previously stated, you are of the view that the payments received by Canco as consideration for the services would not be considered "royalties" within the meaning of paragraph 4 of Article XII of the Convention. ...

Some volunteers receive modest sums of money, gift certificates or goods and/or services in consideration for the services rendered. Nevertheless, this consideration often times does not adequately reflect the amount of work performed nor the quality of the services provided. Furthermore, the consideration paid is often not enough to ensure the provision of services by the volunteers and does not reflect the fair market value of the services rendered. ...

S.148(7) allows for the transfer of a life insurance policy, for no consideration, to a non arm's length person for a deemed proceeds of disposition equal to the cash surrender value of the policy; 2. ... Generally, subsection 148(7) of the Act will apply when an individual transfers a life insurance policy to another person for no consideration. ... Subsection 148(7) of the Act would generally apply a transfer of a life insurance policy to a trust for no consideration, where a child or grandchild of the policyholder is beneficially interested in the trust. ...

Since the situation outlined in your letter relates to a completed transaction involving specific taxpayers you should submit all relevant facts and documentation to the appropriate Tax Services Office ("TSO") for their consideration. ... To determine if a motor vehicle allowance described in subparagraph 6(1)(b)(vii.1) of the Act is reasonable, various considerations arise. ... The considerations you raise may warrant an increase to the rate paid to employees who are in fact affected by all such factors. ...

(ii)At all times "the consideration for which the share is to be issued", within the meaning of subparagraph 66(15)(d.1)(i) of the Act and "the consideration received by the corporation for the share", within the meaning of subparagraph 66(15)(d.1)(ii) of the Act, will be the Subscription Price paid by the subscriber to acquire each Special Warrant. ... Generally, the amounts of any such renunciations cannot exceed the consideration paid for the Right. However, in the above hypothetical situation, provided that the agreement for the issuance of the Special Warrants constituted an "agreement in writing" for the purposes of the FTS definition referred to above under which the PBC is obligated to incur (and renounce to the subscriber) the expenses specified in such FTS definition and to issue its common shares to the subscriber, in our opinion the "period" referred to in subparagraphs 66(15)(d.1)(i) and (ii) of the Act would commence with the entering into of such agreement and the amount of the "consideration" for the purposes of such provisions would be equal to the Subscription Price. ...