Search - consideration

CRA then simply states:...if C receives from A and B property other than property distributed by Holdco to Newco or substituted property as consideration for the sale of his shares of the capital stock of Holdco then the bump denial rule in subparagraph 88(1)(c)(vi) should not be applicable....On this point, it is worth noting that money is excluded from the notion of "substituted property" pursuant to subparagraph 88(1)(c.3)(iii) but not from the notion of "distributed property". ...

Now taking under consideration the amalgamation, s. 87(2)(aa) provided that if a dividend were paid by a predecessor corporation and a portion thereof would be deemed not to be a taxable dividend by s. 129(1.2), the RDTOH of the predecessor corporation is not transferred to the amalgamated corporation. ...

At the beginning of Year 2, C and D transfer their interests in CD under s. 97(2) to another limited partnership (Master) in consideration for LP interests in Master. ...

After noting that s. 97(2) permits a taxpayer to dispose of property on a tax-free basis to a partnership if, among other things, the taxpayer is a member of the partnership immediately following the disposition, CRA stated: [T]here would be a disposition of the initial interest if the interests in income and in capital received in consideration had rights and characteristics sufficiently different to be distinguishable from those of the initial interest. ...

Absent exceptional circumstances, such degree of integration would be expected to exist where for no consideration a mutual fund trust guarantees a debt incurred by a wholly-owned subsidiary to finance its commercial operation.... ...

The non-resident transfers the Holdco shares to Opco in consideration for redeemable preferred shares of Opco, thereby realizing a capital gain that is treaty-exempt. ...

10 November 2004 External T.I. 2004-0092561E5 F- 85(1), 248(1) "Disposition"-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition no disposition to the extent that there is a dirty s. 95 exchange of old common shares for identical new common shares An individual transfers his 100 common shares of a corporation to the corporation in consideration for 500,000 preferred shares and 100 common shares of the corporation, with the 100 common shares previously held by him being cancelled. ...

10 September 2012 External T.I. 2012-0446921E5 F- Avantage pour automobile-- summary under Paragraph 85(1)(e.4) Summary Under Tax Topics- Income Tax Act- Section 85- Subsection 85(1)- Paragraph 85(1)(e.4) car acquired at cost equal to FMV for standby charge purpose notwithstanding s. 85(1) election In 2012, Corporation A disposed of an automobile that had been acquired by it in 2009 at a cost of $40,000 and used by a joint employee of it and a related corporation (Corporation B) to Corporation B, for consideration equal to its fair market value of $25,000, with the automobile continuing to be used by the employee in the course of such joint employment. ...

After discussing the potential application of s. 15(1.4)(c), CRA stated (TaxInterpretations translation): Alternatively…the difference between the fair market value of property transferred and the consideration received by Corporation A could be included in computing the income of Holdco pursuant to subsection 56(2) to the extent that it was possible to demonstrate that a payment or transfer of property (the capital property) was made by Corporation A pursuant to the direction of, or with the concurrence of, Holdco, to the spouse of Shareholder 4…and was desired by Holdco to be conferred on the spouse...and to the extent that a payment or transfer of property would be included in the income of Holdco if such payment or transfer had been made by Corporation A to Holdco. ...

11 June 2015 External T.I. 2014-0522641E5 F- Usufruct-- summary under Subsection 73(3) Summary Under Tax Topics- Income Tax Act- Section 73- Subsection 73(3) creation of usufruct between father and son entails transfer of trust interest, not farm property A father, who has carried on a farming business for a number of years, grants the bare ownership of the property for consideration to his son while retaining rights as the usufructuary. ...