Search - consideration

Reasons: Whether all of the conditions of 20(1)(e.2) are satisfied is a question of fact to be determined in consideration of all pertinent information. 2008-030396 XXXXXXXXXX Robert Demeter, CGA (613) 952-1505 March 10, 2009 Dear XXXXXXXXXX: Re: Deduction of premiums on life insurance used as collateral We are writing in response to your recent request regarding the above-noted subject. ... Whether the conditions described by paragraph 20(1)(e.2) are present in any particular situation is a question of fact that must be determined in consideration of all pertinent information. ...

If however, the option to purchase is exercised and the grantor disposes of the real property that constitutes QFP, it is our view that, pursuant to subsection 49(3) of the Act, the consideration received by the grantor for the option will become part of the proceeds of disposition of the real property. As such the consideration for the option may be eligible for the capital gains exemption under section 110.6 of the Act by virtue of being reflected in any taxable capital gains arising from the disposition of the real property. ...

In order to qualify, the amounts must be paid as a premium, contribution or other consideration to a private health services plan ("PHSP"). ... In this respect 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. ...

A gift is generally defined as a voluntary transfer of property without consideration. In the scenario you have described, there is consideration in the form of services provided to the estate. ...

A disposes of his 100 common shares of the capital stock of XCO in favour of YCO for a sale price of $800, the sole consideration consisting of a promissory note issued by YCO, payable on demand to Mr. ... Our comments: It is our view that, in a situation such as that described above, where the FMV of the shares transferred is higher than the FMV of the consideration received, the amount of the deemed dividend determined under paragraph 84.1(1)(b) would not be affected or increased because of the application of subparagraph 69(1)(b)(i) to the transaction. ...

The fact that a tax-paid amount can arise in depositary and trusteed RRSPs creates special reporting considerations for these types of RRSPs. ... As such, there cannot be a tax-paid amount paid from an insured RRSP and these special reporting considerations do not arise in the context of insured RRSPs. ...

It should also be noted that where a person who holds an interest in a SBIT knew at the time of the issue of the interest, or at the time of contributing in respect of the interest, that a substantial portion of the consideration or contribution would not be invested in SBS's, and all or substantially all of the consideration or contribution would be returned within 24 months, then subsection 5104(4) of the Regulations would deem the trust to not be a SBIT. ...

24 January 2006 External T.I. 2005-0157581E5- taxation of CPP death benefits Unedited CRA Tags 220 56(1)(a.1) Principal Issues: request for administrative relief Position: none available XXXXXXXXXX 2005-015758 Annemarie Humenuk January 24, 2006 Dear XXXXXXXXXX: Re: Taxation of CPP Death Benefits This is in reply to your letters of October 13, and November 3, 2005, in which you ask for fairness consideration in respect of the death benefit payable under section 71 of the Canada Pension Plan ("CPP death benefit") received by the Estate of the XXXXXXXXXX All statutory references in this letter (other than the reference above) are references to the provisions of the Income Tax Act, R.S.C. 1985 (5th supp.) c. 1, as amended (the "Act"). ... In your letter, you request "tax fairness consideration". The fairness provisions described on the Canada Revenue Agency's website, http://www.cra-arc.gc.ca/agency/fairness/fair-prov-e.html, refer to the provisions in section 220 that were enacted in 1991 as part of the fairness package. ...

All of Usco2’s assets are used in the active business. 5) Forco is a corporation resident in the United States that is not related to Canco. 6) Forsub is a wholly-owned subsidiary of Forco resident in the United States. 7) Usco2 sells the beneficial ownership in all of its active business assets to Forsub for fair market value consideration but retains legal title thereto. 8) On the day following the transaction described in paragraph 7 above, Usco1 sells the shares of Usco2 to Forco for fair market value consideration. ...

Position: The consequences of a release or surrender of an income interest for no consideration are set out in paragraph 9 of IT-385R2. ... The reference in that paragraph to "validly" requires consideration of the terms of the trust indenture and the relevant provincial law. ...