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Could it look through Partnership A to take into consideration Partnership B’s properties when calculating its investment allowance u;nder s. 219(1)(l) (the “Allowance”)? CRA responded: Having given consideration to the purpose of the Branch Tax and noting that a non-resident corporation that is a member of a top-tier partnership would be subject to Branch Tax in respect of its share of taxable income earned through a lower-tier partnership, in our view, it is reasonable to consider that the corporation will also be considered to be a member of a lower-tier partnership for the purpose of subsection 808(4) of the Regulations. ... In the scenario you presented, the non-resident corporate partner may, when calculating its Allowance … “look through” Partnership A to take into consideration Partnership B’s properties. ...

CRA responded: “[R]evenue” under normal accounting practices generally requires the satisfaction of certain performance obligations, such as the sale of goods or the performance of services that would typically result in a corresponding inflow of cash, accounts receivables or other consideration. … [U]nder normal accounting practices, “percentage of completion” is a method that reports revenue of a service contract over a period of time (i.e., performance obligations under the contract have been satisfied on an ongoing basis by the entity). Moreover, the services performed under the contract by an entity typically give rise to an inflow of cash, receivables or other consideration over the term of the service contract. ... CRA responded: [T]he mark-to-market valuation adjustment to the carrying value of the investment does not give rise to an “inflow of cash, receivables or other consideration”. ...

(Tax Window, No. 18, p. 2, ¶1831)-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) Where, in connection with the transfer by Opco to its parent, Holdco, of property subject to debt in excess of the property's ACB, Holdco first assumes the excess debt in consideration for a promissory note of Opco, and then Holdco surrenders that promissory note to Opco in consideration for the redemption of preference shares issued by Holdco to Opco on the transfer, the interest on the assumed debt will be deductible provided that interest on that debt was deductible by Opco and the property is used by Holdco to earn income. ...

16 October 2012 External T.I. 2012-0439151E5- RRSP strips and prohibited investments-- summary under Registered Plan Strip Summary Under Tax Topics- Income Tax Act- Section 207.01- Subsection 207.01(1)- Registered Plan Strip Respecting an expressed concern that the sale of a prohibited investment by an RRSP or RRIF to the annuitant for fair market value consideration may be viewed as an RRSP strip notwithstanding that the transaction is expressly excluded from the "swap transaction" definition, CRA stated: if a prohibited investment held by an RRSP or RRIF is sold by the RRSP or RRIF to the annuitant of the RRSP or RRIF for cash consideration equal to the fair market value of the prohibited investment, the sale transaction will not be treated as an RRSP strip. ...

CRA stated: The scenario you have described results in an employee disposing of the employee’s rights under a stock option for consideration equal to the stock option’s intrinsic or in-the-money value where the consideration is paid in employer treasury shares. ...

14 April 2009 External T.I. 2007-0238221E5 F- Rights of musician-Transfer-- summary under Subsection 56(2) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(2) s. 56(2) not applicable where copyright or royalty interests transferred at FMV As part of a general response respecting the transfer of rights by a musician to a corporation, CRA stated: As illustrated by … IT-335R2 [para. 8] …the sale of a property for consideration less than its fair market value could result in the application of subsection 56(2). On the other hand, the sale of copyright or royalty interests for consideration equal to their fair market value will generally not trigger subsection 56(2). ...

11 January 2010 External T.I. 2009-0340591E5 F- Specified class- 256(1.1) of the Act-- summary under Subsection 51(1) Summary Under Tax Topics- Income Tax Act- Section 51- Subsection 51(1) s. 51(1) exchange regarded as the new shares having been issued for consideration equalling the FMV of the old shares Where a shareholder exchanged all its Class A shares for Class B shares of the same corporation pursuant to what CRA accepted as being a s. 51 exchange, CRA characterized the Class B shares as having been issued, for purposes of the test in s. 256(1.1)(e), for consideration equalling the FMV of the exchanged Class A shares. ...

Gain-- summary under Subsection 84(3) Summary Under Tax Topics- Income Tax Act- Section 84- Subsection 84(3) sale of stock option shares to affiliate of employer Where employees of Opco (who as a group, own 14% of its issued common shares) are terminated, they are required to sell their Opco common shares for cash consideration to a new corporation ("Newco") equal to the shares' fair market value; and Newco finances the purchase with a non-interest bearing loan from Opco and, shortly after the purchase, transfers the common shares to Opco for fair market value consideration. ...

CRA stated: [I]n a typical petroleum and natural gas lease, the lessor grants the oil and gas company the exclusive right to explore for, drill for and take the petroleum, natural gas and related hydrocarbons that occur on or under a particular parcel of land in return for consideration consisting of lump sum rental payments and bonus payments. Since a CRP [Canadian resource property] is defined as including any right, licence or privilege to explore for, drill for or take petroleum, natural gas or related hydrocarbons in Canada, we believe that the consideration received by the lessor for entering into such a lease should be treated as proceeds of disposition of a CRP. ...

23 May 2013 External T.I. 2012-0472101E5 F- Emphytéose- disposition de terrain-- summary under Proceeds of Disposition Summary Under Tax Topics- Income Tax Act- Section 54- Proceeds of Disposition building erected on land was the consideration for the emphyteutic grant A corporation ("Corp. ... Consequently, when City granted the right of emphyteusis to Corp., this seems to be the disposition of a property for which the consideration- the improvements made to the land- is required to be provided to the owner at the end of the emphyteusis. ...