Search - consideration

27 May 2004 External T.I. 2003-0031231E5 F- Actions visées par règlement-gel successoral-- summary under Subparagraph 6205(2)(a)(i) Summary Under Tax Topics- Income Tax Regulations- Regulation 6205- Subsection 6205(2)- Paragraph 6205(2)(a)- Subparagraph 6205(2)(a)(i) test satisfied where the purpose was solely estate-freezing Three brothers (A, B and C), who were the equal common shareholders of ABC, each effected an estate freeze in favour of a discretionary trust for the benefit of himself, his wife and their descendants, so that their common shares of ABC were converted into preferred "freeze shares" and new common shares (assumed to be prescribed shares) were issued for nominal consideration to the respective family trusts (Trusts A, B and C). ...

A had been actively engaged on a regular and continuous basis for 18 months) on a s. 85(1) rollover basis to a corporation in consideration for shares, and then sold the shares two, or six, months later. ...

13 July 2004 External T.I. 2004-0058141E5 F- Transfert du droit aux revenus provenant d'un bien-- summary under Subsection 248(3) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(3) assignment of the rents from a rental property to a corporation would result in a disposition to a deemed trust under s. 248(3) Monsieur and Madam will transfer, to their jointly-owned corporation, the right to receive the income from a rental property for a specified period, in consideration for preferred shares of the corporation. ...

13 July 2004 External T.I. 2004-0058141E5 F- Transfert du droit aux revenus provenant d'un bien-- summary under Subsection 75(2) Summary Under Tax Topics- Income Tax Act- Section 75- Subsection 75(2) s. 75(2) applicable to assignment of the rents from a rental property to a corporation giving rise to a deemed trust under s. 248(3) A couple transferred, to their jointly-owned corporation, the right to receive the income from a Quebec rental property for a specified period, in consideration for preferred shares of the corporation. ...

CRA found that s. 256(7)(d) deemed there to be no acquisition of control of OPCO given that: [T]he shares of the capital stock of OPCO were disposed of to another corporation (HOLDCO AB) for consideration that included shares of the capital stock of HOLDCO AB and immediately after the time of the disposition HOLDCO AB and OPCO were controlled by a group of persons (Mr. ...

20 December 2004 External T.I. 2004-0092871E5 F- Arm's Length: de facto control-- summary under Subsection 256(5.1) Summary Under Tax Topics- Income Tax Act- Section 256- Subsection 256(5.1) Silicon Graphics has not changed the CRA view that the holder of a large demand note can have de facto control In 1999-0008405 F, CRA applied IT-64R4 in generally commenting that s. 84.1 could apply where an individual who sold the individual’s shares of a corporation to another corporation in consideration for a demand loan the value of which equaled 80% of the total value of such purchaser's assets. ...

26 September 2002 External T.I. 2002-0128955 F- 84.1(1)(b) Deem Dividend 83(2) CDA-- summary under Subsection 83(2) Summary Under Tax Topics- Income Tax Act- Section 83- Subsection 83(2) s. 84.1 deemed dividend to someone who in fact was not a shareholder was not eligible for an s. 83(2) election An individual disposed of all of the shares of a private corporation to a corporation wholly owned by his wife (OP2) in consideration for a note of OP2, and wished for OP2 to elect under s. 83(2) for the dividend that was deemed to be received by him pursuant to s. 84.1(1)(b) to come out of OP2’s capital dividend account (CDA). ...

20 November 2002 External T.I. 2002-0153635- Exchange rights iss-- summary under Subsection 132(7) Summary Under Tax Topics- Income Tax Act- Section 132- Subsection 132(7) Non-residents who had sold a business to a Canadian corporation owned by a unit trust in consideration for notes and shares of the corporation had the right to exchange such notes and shares for units of the unit trust provided that this did not result in non-residents owning more than 49% of the units of the trust. ...

20 December 2002 External T.I. 2002-0164735 F- PRODUIT DE DISPOSITION ACHALANDAGE-- summary under Paragraph 12(1)(g) Summary Under Tax Topics- Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) s. 12(1)(g) applicable to incremental pharmacy sales price for goodwill based on volume of prescriptions for post-sale years On a sale of the business of a pharmacist, the consideration for the goodwill sold is equal to the number of prescriptions sold over a 12-month period multiplied by a set amount ($2.50) per prescription but is increased by a further $2.50 per such number of prescriptions for each completed two-year period during the six-year term of the agreement during which the lease was successfully renewed. ...

However … consideration should continue to be given to legal form with respect to items that are required to be included in the computation of capital either as loans, advances or indebtedness. ...