Search - consideration

There were no additional fees or charges in addition to the $20 per month, nor were there any commitments (e.g. a commitment to lease future vehicles from the lessor) between the Employer and the Lessor in consideration for the nominal $20 per month charge. ... (emphasis added) Where a lessor charges a lessee a nominal monthly amount for the use of its automobiles, the CRA will examine the consideration exchanged. ... We are aware that it is not uncommon for the use of automobiles to be provided in exchange for non-cash consideration. ...

CRA will examine the true consideration exchanged. If the amount paid is not grossly deviant from the fair market value of the automobile at the time of the purchase, then it is acceptable for the nominal amount paid to be used as the cost of the automobile for the purposes of the standby charge calculation. Reasons: CRA will examine the true consideration exchanged. In an arm's length transaction where a lessor has recovered a substantial value of the automobile from the lease arrangement, then the nominal amount paid to purchase the automobile should reasonably represent its fair market value. ... The cost of the automobile is also described in subsection 6(2) of the Act under variable C which states: C is the cost of the automobile to the employer where the employer owns the vehicle at any time in the year; Where a lessee purchases an automobile from a dealership at a nominal amount, the CRA will examine the true consideration exchanged. ...

When the plan represents (i) an undertaking by one person, (ii) to indemnify another person, (iii) for an agreed consideration, (iv) from a loss or liability in respect of an event, (v) the happening of which is uncertain, it will be considered to be in the nature of insurance. ... A cost-plus plan under which the administrator agrees to reimburse the proprietor, his or her spouse and members of his or her household for actual medical and hospital expenses and receives, as consideration, an amount equal to the amount reimbursed plus an administrative fee, does not qualify as a PHSP since it does not contain the necessary elements of insurance. ... The consideration given by the employee is considered to be the employee's covenants as found in the collective agreement or in the contract of service. ...

15 July 2008 External T.I. 2008-0275471E5 F- Société de personnes/Ajustement au PBR Unedited CRA Tags 53(1)e) 99(1) 40(1)a)(i) Principales Questions: D'ici la sanction du projet de loi modifiant le paragraphe 99(1), est-ce que l'ARC entend appliquer la loi de manière à ce que les revenus ou les pertes d'une société de personnes pour sa dernière année d'imposition avant sa dissolution soient pris en considération dans le calcul du PBR prévu à l'article 53? ... Vous désirez savoir si, d'ici la sanction du projet de loi modifiant le paragraphe 99(1), l'ARC entend appliquer la LIR de telle manière à ce que les revenus ou les pertes d'une société de personnes pour sa dernière année d'imposition avant sa dissolution soient pris en considération dans le calcul du prix de base rajusté (" PBR ") de la participation d'un associé en vertu de l'alinéa 53(1)e). ... L'utilisation à deux reprises de l'expression " immédiatement avant le moment donné " a pour but d'assurer que les revenus ou les pertes d'une société de personnes pour sa dernière année d'imposition avant la dissolution soient prises en considération dans le calcul du PBR des participations des associés aux termes de l'article 53. ...

Where the purchaser of a business acquires goodwill, as a recognizable asset, the consideration given for the goodwill will generally qualify as an eligible capital expenditure, as defined in subsection 14(5) of the Act. ... The consideration must include at least one share of the corporation. The transferor is permitted to dispose of the property to the transferee for an "agreed amount" which may be other than the fair market value of either such property or the consideration received for it, provided the agreed amount falls within certain limits. ...

Our Comments In general terms, a gift, for purposes of the charitable donations tax credit under section 118.1 of the Income Tax Act (the “Act”), is a voluntary transfer of property without valuable consideration. It is our view that the publicly traded shares would not, in itself, be a gift because valuable consideration (i.e. the annuity) will be received. ... However, in the situation described above, it is our view that the publicly traded shares would not, in itself, be a gift because valuable consideration (i.e. the annuity) will be received. ...

Holdco to Canco for fair market value consideration and continues to pay all of the expenses of U.S. ... Generally, in the case of luxury property it may be very difficult to find a fair market rental value which could be used in the determination of the shareholder benefit and, as stated in our response to question 33 at the 1987 Revenue Canada Round Table, the benefit may have to be determined using a normal rate of return on the greater of the cost or fair market value of the property, plus the related operating costs, less any consideration paid to the corporation by the shareholder. ... Holdco is carried out solely to avoid the possible application of subsection 15(1), consideration would have to be given to whether the general anti-avoidance rule found in subsection 245(2) of the Act might apply. ...

You have further indicated that the consideration paid by Newco to Mr. ... Our comments 84.1 Generally, we agree with your conclusion that where a vendor is dealing at arm's length with a purchaser corporation, subsection 84.1(1) of the Act does not apply to the sale of shares of a subject corporation to redetermine, as dividends, the non-share consideration received by the vendor on the sale of the shares of the subject corporation. 245(2) Whether it could reasonably be considered that any of the avoidance transactions described in your letter would result in a misuse of any provision of the Act or an abuse having regard to the provisions of the Act read as a whole, such that subsection 245(2) would apply, is a determination that could only be made after a review of all the relevant facts and circumstances of a particular situation. ... In formulating our reply, consideration was not given to other provisions of the Act such as section 55 which may apply in a specific situation involving the disposition of property. ...

A "retirement savings plan" is defined in subsection 146(1) of the Income Tax Act and it includes a contract between an individual and a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business, under which, in consideration of payment by the individual or the individual's spouse of any periodic or other amount as consideration under the contract, a retirement income commencing at maturity is to be provided for the individual. ... The decision to revoke registration is taken only after the facts of the situation have been given careful consideration. ...

Principal Issues: Can an individual transferring property to a partnership under subsection 97(2) claim a reserve under subparagraph 40(1)(a)(iii) where the individual receives as consideration a promissory note payable over 5 years. ... You would like to know whether a reserve under subparagraph 40(1)(a)(iii) of the Act could be claimed by an individual transferring property to a partnership pursuant to subsection 97(2) of the Act where the individual receives as consideration a promissory note payable over five years. ... In respect of your first concern, where an individual transfers property to a partnership under subsection 97(2) of the Act, and receives as consideration a promissory note payable over five years, the agreed amount will include the promissory note and this amount shall be deemed to be the proceeds of disposition for the individual and the cost for the partnership. ...