Search - consideration

. … … [I]t cannot be considered … that the amounts payable by Corporation B and/or Corporation C under the second contract could represent consideration for the use of an amount of capital (or a right to the amount of capital). … [In addition t]he contractual relationship between Corporation A and Corporation B, on the one hand, and Corporation A and Corporation C, on the other hand, … does not appear to us to create a lender-borrower relationship between those corporations, so that subparagraph 20(1)(c)(i) cannot be applicable. ...

. … [T]he U.S. tax paid by Usco on its share of the portion of the gain computed pursuant to the Code from the disposition of the Consideration Property by the Partnership that could reasonably be regarded as the gain and/or recaptured depreciation determined pursuant to the Code that was deferred on the disposition of the Rental Property by the Partnership would qualify as FAT. ...

The 23% withholding tax under ITA s. 212(5.1) on the gross consideration paid could be avoided if the corporation files a Part I return for the year by its filing due date therefor and elects therein to have s. 216.1 apply. ...

B, for no consideration, ½ of her preferred shares, thereby realizing under s. 73(1) proceeds of disposition deemed to be equal to the ACB of those shares of $500,000. ...

Since Child will not pay consideration to Father, the deemed trust would qualify as a personal trust within the meaning of subsection 248(1). ...

23 June 2010 External T.I. 2010-0365581E5 F- Règles d'attribution de l'article 74.2-- summary under Paragraph 74.5(1)(c) Summary Under Tax Topics- Income Tax Act- Section 74.5- Subsection 74.5(1)- Paragraph 74.5(1)(c) s. 74.2(1) inapplicable to transfer at FMV of property to a discretionary family trust, with capital gain on property subsequently distributed to spouse of transferor An individual disposed of capital property to a discretionary trust (whose beneficiaries were the individual and spouse and their children) in consideration for property (other than a debt obligation) having the same fair market value. ...

If he drops the pharmacy department down into a newly-incorporated corporation ("Pharmaco") and sells the commercial department to an arm's length corporation ("Opco B"), with Pharmaco agreeing to pay Opco B annual amounts equal to a percentage of Opco B's sales in consideration for Opco B agreeing to continue to carry on the acquired business (the commercial department), would such payments be deductible? ...

Furthermore, the reporting entity would report their share of income and/or gains/losses with respect to specified foreign property on Form T1135, based on their ownership interest in the underlying property and without consideration given to the attribution rules. ...

CRA responded: In the first situation…[if] a genuine employment relationship existed… over the years and the corporation paid him or her a salary in consideration for his or her services rendered during those years, the failure to pay a wage to the individual during the two years preceding his death would not result in the amount paid by the corporation to the employee not being a death benefit. ...

The individual transfers the policy to a wholly-owned corporation in consideration for two demand notes in respective amounts equalling the CSV, and the FMV excess over the CSV (i.e., $310,000). ...