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In other words, the amount or value of the benefit conferred where corporate owned property is made available to a shareholder would generally be considered to be equal to the fair market rental of that property less any consideration paid by that shareholder with regard to the property. As noted in that response, however, where this approach is not appropriate for measuring the value of the benefit, e.g., if it does not provide a reasonable return on the cost or value of the property, the benefit would generally be determined with reference to a normal rate of return on the greater of the cost or fair market value of the property, plus the related operating costs but reduced, as above, by any consideration paid by that shareholder with regard to the property. ... This response was given in the specific context of residential real property located in the U.S. which is held by a Canadian corporation for the occupancy of its shareholder and indicated that a benefit otherwise arising (where the fair market rental of the property exceeded the consideration paid by the shareholder) would not normally be assessed provided all the conditions given therein were satisfied. ...

However, in circumstances where it can be determined, on examination of all the facts, that the option is granted in consideration for services that are to be rendered after the time of grant and upon the fulfillment of a condition or contingency, the income should instead be recognized when the services are rendered, the amount is quantifiable and the rights are unrestricted. ... The determination of whether any incremental value realized on the exercise of the stock option represents business income or a capital gain can only be made after consideration of all the relevant facts and circumstances. Where the facts indicate that the incremental value represents part of the consideration received by the taxpayer for consulting services rendered, the incremental value should generally be treated as business income for purposes of the Act. ...

Generally, a plan will be considered a superannuation or pension fund or plan 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 periodic payments on or after the employee's retirement in consideration for his or her employment services. ... First, one identifies potentially relevant factors connecting the property to a reserve and then one weighs the significance of each factor in light of three considerations: the purpose of the exemption from taxation, the type of property, and the nature of the taxation of that property. ...

Chris Martin of Consumer and Corporation Affairs Canada for your consideration and direct reply. ...

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. ... While a question of fact, it is arguable that the value of this consideration is equal to the fair market value at the time the shares are acquired. ... (That is, the borrower will purchase from a third party the number of securities it originally borrowed and dispose of them to the lender in consideration for the settlement of its obligation under the right. ...

In regard to the issuance of shares, the stated capital account reflects (a) the par value of shares issued with a par value, (b) the amount ascribed by the directors for shares issued without par value or, in some jurisdictions, the fair market value of the consideration received for shares issued without par value, (c) a reduction for discounts granted (where permitted) for par value shares, and (d) a reduction for unpaid amounts (where permitted) for any issue. ... Canadian corporate law statutes generally provide that a corporation shall add the full amount of consideration it receives for any shares it issues to the appropriate stated capital account, 1 but shall not add an amount greater than the full amount of the consideration so received. 2 In addition, the corporate law statutes generally provide that a share shall not be issued until the consideration for the share is fully paid in money or in property or past services that are not less in value than the fair equivalent of money that the corporation would have received if the share had been issued for money. 3 Assuming that Opco is governed by similar corporate laws, Opco will not be permitted to issue the 30 Opco Shares to A unless the 30 Aco common shares to be received by Opco as consideration have a value of $300, being the fair equivalent of money that Opco could receive if it issued 30 Opco Shares for cash. ... This is because the 30 Opco Shares issued for $300 of cash consideration should have a fair market value of $300 immediately after their issuance as those 30 Opco Shares will in substance represent a 30/130 share in Opco's assets, which should have a fair market value of $1,300. ...

Your comments will be taken into consideration in deciding the issue. ...

Joy 957-2083 Assistance Division   F-3265 Income Tax Act French and English Versions Your enquiry of September 13 with regard to the different presentation of certain provisions of the Act, as between the French and English versions, was sent to the Tax Counsel Division, Department of Finance, for consideration. ...

Accordingly, we have forwarded their request to you for your consideration and reply. for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch ...

Attached for your consideration and comment is a copy of a Department of Finance memorandum dated October 5 on this topic. ...