Search - consideration

Whether a corporation's principal business is transmission, is not based solely on its revenues and net income and entails consideration of such factors as income, gross revenue, operating cost, and expenses associated with each business; the capital employed in each business; and the time and effort expended by employees in respect of each business. ...

Profit- Patents and Know-How respecting a licensing by a Canadian corporation of the use of its patent for specified purposes for a limited period to another taxable Canadian corportion in consideration for the issuance of shares, CRA was asked whether such right to use the patent would qualify as eligible property under s. 85(1.1). ...

(December 1992 Access Letter, p. 22, ¶C109-123, Tax Window, No. 17, p. 4, ¶1762)-- summary under Subsection 6205(2) Summary Under Tax Topics- Income Tax Regulations- Regulation 6205- Subsection 6205(2) Where an individual transferred the common shares of Opco to Newco in consideration for preferred shares with the intention of having Newco issue common shares to his son but instead receives the common shares himself because this transaction is frustrated, the preferred shares of Holdco will be prescribed shares on the basis that increases in the value of the property of Holdco will accrue to the common shares owned by him. ...

(November 1990 Access Letter, ¶1528)-- summary under Subsection 110.6(9) Summary Under Tax Topics- Income Tax Act- 101-110- Section 110.6- Subsection 110.6(9) Where in 1982 prior to the introduction of Part II tax, the shareholders of Opco transferred each common share of Opco to Holdco in consideration for one common share and one special share of Holdco, and no dividends ever were paid on the special shares, s. 110.6(a) will apply to deny the capital gains exemption where any significant part of any capital gain from the disposition of a share was attributable to the non-payment of dividends on the special shares. ...

15 May 2003 External T.I. 2003-00626-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) extraction of appreciation Where a taxpayer satisfied the purchase price for an income-producing property by assuming a debt owing by the vendor to a third party and, at a subsequent date when the property has appreciated in value from $100 to $120, transfers the property to a partnership in consideration for $20 in cash (which is used for a non-income producing purpose) and a $100 partnership interest, interest on the debt will continue to be deductible. ...

9 March 2011 External T.I. 2003-0017231E5- Application of section 17-- summary under Subsection 17(1) Summary Under Tax Topics- Income Tax Act- Section 17- Subsection 17(1) The phrase "owes an amount" in s. 17(1) is not limited to money that is loaned, and includes unpaid consideration, amounts owing to a corporation in Canada, accrued liabilities in its favour and unpaid dividends. ...

However, serious consideration would be given to the addition of discretionary beneficiaries given that there would be a resulting disposition of interests in the trust. ...

Treaty-- summary under Article 22 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 22 where Canco receives a guarantee (in respect of a loan made to Canco by a third party or Canco's indirect Canadian parent) for no consideration from a US sister company, the resulting interest payment imputed to be made by Canco under ss. 247(2) and 214(15)(a) will be exempted under Art. ...

(May 1990 Access Letter, ¶1216)-- summary under Subsection 55(2) Summary Under Tax Topics- Income Tax Act- Section 55- Subsection 55(2) One corporation ("S1") transfers a capital property under s. 85(1) to a sister corporation ("S2") in consideration for redeemable preference shares which are then redeemed following the sale by S2 of the property to an arm's length purchaser. ...

(Tax Window, no. 29, p. 22, ¶2431)-- summary under Regulation 1400 Summary Under Tax Topics- Income Tax Regulations- Regulation 1400 Where an insurance company accepts an annuity contract as partial consideration for the assumption for another party's obligation with respect to a structured settlement, it will be permitted to deduct a policy reserve under s. 20(7)(c) of the Act provided that its obligation under the Assumption Agreement (that it is permitted by the relevant authority to enter into) constitutes an insurance policy, and that the amount of the reserve in respect of the liability arising under the policy is reported in its annual report to the relevant authority and is equal to the present value of the liability. ...