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After noting that “a payment that is made to induce the recipient to do something will generally be considered an inducement payment,” the Directorate found that the value of the warrant was to be included in Aco’s income given that inter alia “[a]ccording to Aco's minutes, it appears that the warrant induced Aco to enter into the operating agreement for a period of XXXXXXXXXX years instead of a shorter period” and only the cash consideration was treated by the parties as the sale price for the assets. ...

14 February 2008 Internal T.I. 2007-0256401I7 F- Vente d'un surplus actuariel-- summary under Subparagraph 56(1)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(a)- Subparagraph 56(1)(a)(i) amount of asset sale price allocated to actuarial surplus was includible under s. 56(1)(a)(i) as being in lieu of refund of such surplus Before concluding that the portion of the sale price allocated on the sale of a business division to the actuarial surplus in the pension plan was to be included in the vendor’s income under s. 56(1)(a)(i), the Directorate quoted from Transocean regarding the meaning of “in lieu of payment of”, indicated that this established a test of whether the amount was a "reasonable substitute for a superannuation or pension benefit," and concluded: Instead of obtaining a refund under the terms of the Plan, the Vendor elected to assign its rights to the Purchaser in consideration for a payment of $XXXXXXXXXX. ...

If Yco did not so comply, consideration would be given to assessing Y beyond the normal reassessment period for a taxable dividend under s. 152(4)(a)(i). ...

After quoting from Petro-Canada, the Directorate stated: In considering this jurisprudence, we are of the view that in order to establish the reasonableness of the expense, one must establish what a reasonable business person would have undertaken to pay as a contribution to a retirement compensation arrangement with only the business considerations of the Corporation in mind. ...

The Directorate then noted that as “the determination of whether a person exercises de jure control … must also take into consideration whether any specific or unique limitation on a shareholder’s power to control the election of the board or the board’s power to manage the business and affairs of the company, is manifested in either the constating documents of the corporation, or any unanimous shareholder agreement,” it followed that either individual could have de jure control and be related to the employer under s. 251(2)(b)(i). ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Restrictive Covenant Summary Under Tax Topics- Income Tax Act- Section 56.4- Subsection 56.4(1)- Restrictive Covenant a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was for a restrictive covenant In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right to distribute its product in Canada. ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Paragraph 212(1)(i) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(i) a lump sum paid to a non-resident for granting an exclusive right to distribute its product in Canada was subject to s. 212(1)(i) withholding In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right to distribute its product in Canada, with Canco agreeing not to acquire or sell competitive products. ...

However, as the governing legislation did not permit Canco to invest in Foreignco shares, the sums agreed by Canco were agreed, as an informal contractual matter, to be the consideration for “special warrants” to acquire shares of Foreignco, with such warrants being redeemable by the holder for the FMV of the corresponding Foreignco equity. ...

However, as the governing legislation did not permit Canco to invest in Foreignco shares, the sums agreed by Canco were agreed, as an informal contractual matter, to be the consideration for “special warrants” to acquire shares of Foreignco, with such warrants being redeemable by the holder for the FMV of the corresponding Foreignco equity. ...

However: In the event that the goods are transferred without monetary consideration to an individual qua employee, it appears to us that the transfer of the goods may not constitute a gift and subparagraph 69(1)(b)(ii) would not apply to the corporation. ...