Search - consideration

However, the Directorate indicated that “to allow a taxpayer who has made a misrepresentation to use subparagraph 152(4)(a)(i) to reduce the amount of tax assessed would be inappropriate,” in light of various considerations. ...

The Directorate also stated: Consideration was given to whether paragraph 8 of Article 10 of the Treaty could apply only to dividends paid on a particular tranche of shares (i.e. the initial acquisition of shares or a subsequent acquisition of shares resulting in 10% beneficial ownership, either directly or indirectly). ...

12 July 2000 Internal T.I. 2000-0027857 F- PDTPE- COOPÉRATIVE-- summary under Paragraph 39(1)(c) Summary Under Tax Topics- Income Tax Act- Section 39- Subsection 39(1)- Paragraph 39(1)(c) s. 50(1) ABIL could be claimed on members’ shares of cooperative in reliance on 12-month SBC lookback rule A workers' cooperative sold all the assets of its active business to a purchaser in consideration for preferred shares of the purchaser, with the purchaser subsequently becoming insolvent so that the shares and debt of the members in the cooperative also became worthless. ...

This hedge book was assigned to and assumed by Canco and a hedging partnership ("Canco Partnership), as a result of a novation, in consideration for the payment to Canco by FCo and certain affiliates of FCo of the "Compensation Amount". ...

On January 1, 2009, the US employee was granted stock options by Canco in consideration for his duties of employment performed for USCo and, following the exercise of the options on December 31, 2010, USCo paid Canco a sum equal to the in-the-money value of the options at the time of such exercise ($20,000). ...

However, in light of the transitional relief being afforded to such partnerships, the Directorate suggested “that consideration be given to allowing the Florida-LLLPs to be treated as partnerships for the purposes of the Act for the relevant taxation years.” ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Subparagraph 212(1)(d)(i) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(i) Farmparts likely excluded application to product distributorship right/product name on product not a valuable use of trademark Canco and NRco (which is a resident under Article IV of the Treaty, has no permanent establishment in Canada and deals at arm’s length with Canco) entered into a distribution agreement (the “Distribution Agreement”), pursuant to which NRco granted to Canco a right to promote, market and distribute a product manufactured by NRco (the “Product”) in Canada under a specified trade-mark that was registered in Canada in the name of NRco or its affiliate, in consideration for a non-refundable down-payment (the “Upfront Payment”) that was paid, in part, upon signing of the Distribution Agreement and, as to the balance, upon receipt of all governmental approvals for Canco to distribute the Product in Canada. ...

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. ...

Respecting the possibility of recharacterizing the distribution as a fee, the Directorate stated: …[W]e would be prepared to allow a deduction in computing the income of a partnership for fees paid to a partner if the fees are paid in consideration for services provided to the partnership by the partner acting other than in its capacity as a partner (i.e., the services are not related to the ownership of the partnership interest). ...

Q. b CRA noted that although s. 161(7) ensures interest and penalties are computed without regard to reductions in taxes payable resulting from application of subsequent years' losses, "no similar provision exists that would exclude such a deduction from the determination or redetermination of a taxpayer's actual instalment obligations, nor from the determination of the remainder of taxes payable in respect of a taxation year under paragraphs 157(1)(a) and (b)," and concluded: [T]here is no provision…that would, in re-determining a functional currency reporter's CAD Taxes Payable for a taxation year as the result of a loss carried back to that year, prevent consideration of each prior amount of a loss that was previously applied in that year. ...