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17 December 2003 Internal T.I. 2003-0047727 F- Right of Use-Deemed Trust-- summary under Subsection 105(2) Summary Under Tax Topics- Income Tax Act- 101-110- Section 105- Subsection 105(2) potential s. 105(2) benefit where Opco pays all of the expenses on its property to a portion of which the sister of Opco’s indirect controlling shareholder has a right of (personal) use An individual (“Sister”), who had been experiencing financial difficulties, disposed of her home, part of which she had been renting out, to Opco, which was a subsidiary of a corporation (“Holdco”) controlled and partly owned by her sister ("X") (with X’s children as common shareholders) for fair market value consideration. ...

Where a taxpayer leaves behind leasehold improvements made to premises without consideration, the taxpayer is deemed to have disposed of the improvements for nil proceeds of disposition at the time referred to above. ...

In finding that both amounts were interest, the Directorate stated: [T]he interest awarded by the court under the provisions of Article 1618 CCQ as well as the additional indemnity awarded to the taxpayer under Article 1619 CCQ are interest by their nature since they represent a return, consideration or indemnity for the use or holding by the wrongdoer of a sum of money that was due to the taxpayer. ...

Paragraph 5 of section 13 of the QCA provides that "[i]n the absence of other provisions in that respect in the constituting act or by-laws of the company, the shares without par value may be issued and allotted from time to time for such consideration, payable in cash, property or services, as may be fixed by the board of directors of the company…” Consequently, the determination of the issue price is left to the discretion of the Board of Directors and is not necessarily the market value of such shares. … [T]he amount paid is the stated capital in respect of the Class A shares which reflects the price agreed between the corporation and the debenture holders. ...

18 April 2002 Internal T.I. 2002-0118827 F- DEBENTURES CONVERTIBLES-- summary under Paid-Up Capital Summary Under Tax Topics- Income Tax Act- Section 89- Subsection 89(1)- Paid-Up Capital PUC of shares issued on debenture conversion equal to consideration stated in debenture indenture and in financial statements, rather than the FMV of shares stated in resolution The corporation, on the conversion by holders of convertible debentures that it had previously issued, passed a resolution stipulating that the stated capital of the shares issued by it on the conversion was equal to the shares’ market value at that time, and took a deduction under s. 20(1)(f)(ii) based on the excess of such market value over the face value of the converted debentures. ...

11 December 2002 Internal T.I. 2002-0173007 F- Observation aux commentaires (OCDE)-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 Canada’s withdrawal of its observation on Art. 12 on March 28, 2002 was prospective, and did not affect its right to impose withholding tax on payments for use of a secret process prior to that date The TSO proposed to impose withholding tax (at a Treaty-reduced rate of 10%) on consideration paid prior to March 28, 2002 by a Canadian resident, for the granting by a UK resident of permanent non-exclusive licences allowing the Canadian resident to use, download, execute, employ and store software owned by the non-resident, on the basis that the payments met the definition of "royalties" in Art. 12(4) of the Canada-UK convention, since they were regarding the use of a secret formula or process. ...

Bitcoin received by a miner to validate transactions is consideration for services rendered by the miner. ...

It stated: Paragraph 400(2)(c) does not indicate that it is an exclusive (“notwithstanding”) or exhaustive (“means”) provision such that it would prevent consideration of any situation other than as described in this paragraph that would cause the taxpayer to otherwise have a PE, such as where a taxpayer as a partner has a PE in a province due to the partnership’s PE. ...

CRA proposed an inclusion in Canco’s income under s. 247(2) of the difference between an arm’s length price for goods sold by Canco to Sisterco LLC and the consideration paid, and also proposed a secondary adjustment under s. 247(12) on the basis that a resulting benefit conferred on Sisterco LLC was deemed to be a dividend that was paid by Canco that was subject to a Pt. ...

Parentco transferred one of the two businesses to Splitco in consideration for Splitco common shares, and distributed those shares (the "Distribution Shares") on one of the two classes of its common shares (the “Original Shares”) on a tax-exempt basis under the Code. ...