Search - consideration

The attribution rules do not apply if fair market consideration is paid by the transferee for the property transferred and an election is made by the transferor to not have the subsection 73(1) rollover apply. Paragraph 74.5(1)(b) of the Act sets out additional requirements necessary to avoid attribution if the consideration includes debt. In the above situation, where you are transferring the rental property to your spouse for no consideration, the attribution rules would therefore apply to attribute both the rental income and any capital gain or loss on the property to you. ...

For no consideration, the Trust guarantees the guarantee described in point 2 and the debt described in point 3. 5. ... In this regard, no person dealing at arm's length with another person would act as guarantor to a loan of that other person unless he received valuable consideration for the risk involved. ... Absent exceptional circumstances, such degree of integration would be expected to exist where for no consideration a mutual fund trust guarantees a debt incurred by a wholly-owned subsidiary to finance its commercial operation, as indicated in technical interpretation 2002-016767. ...

The Employees would like to transfer their Opco shares to a non-arm's length corporation that is resident in Canada ("Holdco") and take back non-share consideration equal to the adjusted cost base of their Opco shares. ... X had simply gifted the Opco shares to the Employees before he died, each of the Employees could have received an amount of non-share consideration from Holdco equal to their actual adjusted cost base (i.e. essentially the fair market value of the Opco shares at that time the gift was made- see paragraph 69(1)(c)) provided it was otherwise factually determined that each of the Employees and Mr. ... We have sent a copy of this letter to the Department of Finance for their consideration. ...

Generally, a plan will be considered a superannuation or pension 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. ... An annuity or other periodical payment made, esp. by a government, a company, or an employer of labour, in consideration of past services. ...

The Release that you signed on XXXXXXXXXX states that you waived your right to continue litigation in consideration of a payment to you of $XXXXXXXXXX, payable as follows: $XXXXXXXXXX "in respect of my claim for damages for mental distress" $XXXXXXXXXX as an RRSP contribution $XXXXXXXXXX for costs, payable to your counsel The Release also provides that for other consideration, you released the Defendants from all claims, including those related to "the conditions of [your] employment and the constructive termination thereof". It is not clear what additional consideration (for example, whether it was cash, letters of recommendation, etc.) may have been provided to you. 3. ...

Canco undertakes an arrangement ("Arrangement") pursuant to subsection 192(1) of the CBCA whereby all the Canco common shares (other than those shares held by the dissenting shareholders of Canco described below) are disposed of to Holdco for consideration that consists solely of the Holdco common shares. ... Paragraph 256(7)(e) of the Act states that "where at any time all the shares of the capital stock of a particular corporation are disposed of to another corporation (in this paragraph referred to as the "acquiring corporation") for consideration that consists solely of shares of the acquiring corporation's capital stock and, immediately after that time, (i) the acquiring corporation is not controlled by any person or group of persons, and (ii) the fair market value of the shares of the capital stock of the particular corporation is not less than 95% of the fair market value of all the assets of the acquiring corporation, control of the particular corporation and of each corporation controlled by it immediately before that time is deemed not to have been acquired by the acquiring corporation solely because of the disposition. ... As a result, the Arrangement described above will not necessarily be disqualified under paragraph 256(7)(e) of the Act by reason only that the dissenting shareholders dispose of their Canco common shares to Canco and receive consideration other than shares of Holdco, such as cash, by virtue of exercising the statutory right to dissent as provided for in section 190 of the CBCA. ...

The consideration paid by the borrower is in the form of a right provided to the lender to reacquire an equal number of identical securities for no consideration other than the extinguishment of the right. ... When the right to acquire securities given by the borrower to the lender is settled, the borrower will purchase from a third party the number of securities it originally borrowed (the "new securities") and dispose of them to the lender in consideration for the settlement of its obligation under the right. ...

Under the foreign corporate law, the shares of Subco held by Parentco and the shares of Subco 2 held by Subco are cancelled for no consideration. ... Regarding the merger of Parentco and Subco 2 into Subco, you mention that pursuant to the foreign corporate law the shares of Subco held by Parentco and the shares of Subco 2 held by Subco would be cancelled for no consideration. ... Since the shares of Subco and Subco 2 are cancelled for no consideration and Subco and Parentco, as well as Subco 2 and Subco, are not dealing at arm's length, paragraph 69(1)(b) of the Act would generally apply to deem Parentco and Subco to have received proceeds of disposition for the shares of Subco and Subco 2, respectively, equal to the fair market value of these shares. ...

As consideration, the Husband would pay for the Securities using cash, in-kind consideration or a loan at the Canada Customs and Revenue Agency prescribed rates. ... If the election is made and fair market value consideration was received by the Wife, subsection 74.5(1) of the Act provides that the gain or loss from a disposition of the property by the Husband will not be attributed to the Wife in any year in which the Husband subsequently disposes of the property. ...

Principal Issues: Where a corporation loans money to one of its shareholders and takes back a debt instrument from the shareholder as consideration for the loan, whether the corporation confers a benefit with respect to such loan to the shareholder under subsection 15(1)? ... ("Loan II") and as consideration for such loan, X Co. will issue to Mr. ... In our view, where a debt instrument, that is granted by a shareholder borrower to a corporate lender as consideration for a loan given by the lender to the borrower, has a fair market value which is equal to the principal amount of the loan, no benefit will arise with respect to such loan. ...