Search - consideration

Property was transferred to a qualified donee for consideration in year 1. ... No receipt was issued due to consideration given. In year 11, a valuation was obtained suggesting property gifted could have been divided into sets with one set having a fair market value equal to the cash consideration for the transfer. ... In general, a gift is defined as a voluntary transfer of property without consideration. ...

Position: Yes Reasons: Consideration is received by each member in the form of a promise by the club to repay the sum of $XXXXXXXXXX. ... You have stated that in order for a promise to be enforceable, there must be consideration. ... Black's Law Dictionary defines "consideration" as "the inducement to a contract. ...

The individual received as consideration for the disposition an amount of cash, which is used for personal purposes, and shares of Holdco. ... The individual will receive as consideration for the disposition an amount of $100,000 cash (being the adjusted cost base of H Co. shares) and shares of Holdco. ... The taxpayer must establish the current use in respect of the portion of the outstanding loan balance initially used to purchase the H Co shares with the consideration for the disposition of such share. ...

Estate cannot receive renounced expense under flow-through share provisions where the deceased entered into the flow-through share agreement and gave the consideration for the shares. ... The provision requires the expense to be renounced to the same person who entered into the agreement and paid consideration for the shares. ... We will be bringing the matter to the attention of the Department of Finance for their consideration. ...

Principal Issues: amount paid for purposes of subsection 84(3) where shares are part of consideration Position TAKEN: amount paid is equal to fair market value of non-share consideration plus PUC of shares issued Reasons FOR POSITION TAKEN: paragraph 84(5)(d) 952408 XXXXXXXXXX T. ... Consequently, the amount paid to a shareholder under subsection 84(3) of the Act where shares of a corporation have been repurchased for consideration which includes cash and one or more other shares of the corporation will be equal to the amount of cash plus the increase in the paid-up capital of the class as a result of the share issue. ... In addition, although the term "dividend" as defined in subsection 248(1) of the Act includes a stock dividend, we do not believe that shares received as consideration for the redemption of other shares of a corporation would generally constitute a stock dividend. ...

Reasons: Stock dividend shares would be considered to be issued for NIL consideration, but by their nature are redeemable for more than NIL 960508 XXXXXXXXXX V. ... Our opinion is that where a share has been issued as a stock dividend, the consideration for which the share was issued would be NIL, which is relevant in determining whether the conditions in paragraphs 256(1.1)(c), (d) and (e) of the Act, which refer to "an amount equal to the fair market value of the consideration for which the shares were issued" are met. ... Our response would not change since we would still consider that the Class B preferred shares were issued for NIL consideration. ...

Reasons: Pursuant to section 51, when a shareholder receives no consideration other than the new shares, the exchange is deemed not to be a disposition. It is a question of fact whether the shareholder receives consideration other than the new shares. ... It is a question of fact whether a taxpayer receives consideration other than the new shares. ...

20 February 2004 External T.I. 2003-0051961E5- Application of paragraph 149.1(12)(a) Unedited CRA Tags 149.1(12)(a) Principal Issues: Will subsection 149.1(12) deem a charitable foundation not to have acquired control of a corporation where the corporation is controlled by the foundation and other non-arm's length persons, the foundation acquired shares of a corporation for consideration and subsequently, as a consequence of the redemption of shares, the foundation holds more than 5% of the issued shares of a class of a corporation. ... For example, assume in Year 1 a foundation and persons with whom the foundation does not deal at arm's length control a corporation and the foundation purchased or otherwise acquired for consideration less than 5% of the issued shares of a class of the capital stock of a corporation. ... However, in Year 2, since the percentage ownership is greater than 5% of the issued stock of that class due to the redemption and since the shares were acquired for consideration in Year 1, subsection 149.1(12) does not deem the foundation not to have acquired control of the corporation for the purposes of paragraphs 149.1(3)(c) or 149.1(4)(c). ...

Subsection 146(9) will cause an income inclusion to the annuitant equal to the difference between the fair market value of the shares of the CCPC at the time they are disposed of by the RRSP and any consideration received by the RRSP on the disposition. ... Subsection 146(9) of the Act states that if an asset is transferred from an RRSP for consideration which is less than the fair market value of the property at the time of the transfer, or for no consideration, the difference between the fair market value of the property and the consideration, if any, shall be included in computing the income of the annuitant of the RRSP. Accordingly, if consideration taken on the transfer (sale) is nil, there will be no income tax consequence as long as the fair market value of the shares of the CCPC was also nil at the time of the transfer. ...

A personal trust as defined in subsection 248(1) of the Act includes an inter vivos trust in which no beneficial interest was acquired for consideration payable to the trust or to any person who has made a contribution to the trust. It is your view that a self-directed RRSP trust meets this definition because it is an inter vivos trust in which no beneficial interest was acquired for consideration. You have indicated that since all of the beneficial interests in such a trust are acquired by one person, subparagraph (b)(iii) of the definition deems the beneficial interest to be acquired for no consideration. ...