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20 December 2002 Internal T.I. 2002-0147967- TAX IMPLICATIONS CONTRACT TERMINATION-- summary under Paragraph 6(3)(e) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3)- Paragraph 6(3)(e) Upon the termination by a REIT of a management advisory agreement, an individual who previously worked for the advisor became the CEO of the REIT and a portion of the amount paid by the REIT on the termination of the agreement was allocated to the individual as consideration for a non-compete covenant in his employment contract rather than as termination damages to the management advisor. ...

19 December 2013 Internal T.I. 2013-0490751I7- Adjustment to a taxpayer`s CDA-- summary under Subsection 247(8) Summary Under Tax Topics- Income Tax Act- Section 247- New- Subsection 247(8) s. 247(2) trumps s. 69(1) The taxpayer, which was a private corporation, disposed of eligible capital property to a non-arm's-length non-resident sister company ("SisterCo") within the same multinational group in consideration for a promissory note. ...

19 December 2013 Internal T.I. 2013-0490751I7- Adjustment to a taxpayer`s CDA-- summary under Capital Dividend Account Summary Under Tax Topics- Income Tax Act- Section 89- Subsection 89(1)- Capital Dividend Account s. 247(2) increase to ecp proceeds increased CDA on transaction effective date The taxpayer, which was a private corporation, disposed of eligible capital property to a non-arm's-length non-resident sister company ("SisterCo") within the same multinational group in consideration for a promissory note. ...

14 July 1998 Internal T.I. 9808476- BROADCASTER ACQUIRING EQUITY INTEREST-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition A Canadian producer would be considered to have disposed of a portion of its beneficial interest in a television production when it entered into a licence agreement with a broadcaster under which in consideration for a licence fee it agreed to pay the broadcaster 10% of all revenues derived from exploitation of the episodes, merchandise and ancillary products throughout the world in perpetuity with the broadcaster, in addition to receiving broadcasting rights, receiving other rights including ICRS rights, merchandising rights and development rights but without any transfer of copyright ownership. ...

15 August 2018 Internal T.I. 2018-0749931I7- Subsections 87(1), (1.1) and (4)-- summary under Subsection 87(4) Summary Under Tax Topics- Income Tax Act- Section 87- Subsection 87(4) outside basis is not lost on a horizontal short-form amalgamation CRA confirmed the continuing correctness of the statement in S4-F7-C1, Amalgamations of Canadian Corporations, para. 1.74 that: Where shares of a predecessor corporation are cancelled for no consideration pursuant to a short-form horizontal amalgamation, the adjusted cost base of such cancelled shares to the shareholder will be added to the cost of the common shares of the new corporation which are deemed to have been received by the shareholder on the amalgamation under subsection 87(1.1). and noted that this position was based on #F9830205, dated May 18, 1999. ...

It is our view that where a taxpayer gives up his right to compete in a business under a contract that right would be a property for the purposes of the Act and any consideration received by the taxpayer for giving up such right would generally be on account of capital. ...

18 December 2003 Internal T.I. 2003-0044007 F- OPTION D'ACHAT D'ACTIONS RACHETEES-- summary under Capital Property Summary Under Tax Topics- Income Tax Act- Section 54- Capital Property employee stock option surrender proceeds were not from the disposition of capital property The taxpayer surrendered his stock options to his arm’s-length employer for consideration that was payable partly up front and partly in instalments that were never paid. ...

16 December 2003 Internal T.I. 2003-0046167 F- Section 50- Shares of Insolvent Corporation50(1)-- summary under Shares Summary Under Tax Topics- General Concepts- Fair Market Value- Shares shares of corporation that had ceased business and had no assets but had non-capital losses had a significant value The Directorate found that the sale of a subsidiary (Lossco) of the taxpayer with no assets or liabilities but with non-capital losses to another subsidiary (Profitco) for nominal cash consideration gave rise to a gain under s. 69(1)(b) given that “the valuation of those shares should normally take into account accumulated tax losses that may eventually be deductible in calculating a corporation's taxable income, as stated in question 5 of the 1992 APFF Conference Roundtable.” ...

24 October 2000 Internal T.I. 2000-0048177- DEDUCTIBILITY OF INTEREST ON ASSUMED DEBT-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) assumption to redeem prefs Where a corporation redeems its preferred shares and, as consideration, assumes a bank loan that the shareholder had previously incurred to purchase business assets which subsequently had been transferred to the corporation, the interest on the assumed debt will be non-deductible notwithstanding that if the corporation had assumed the debt upon its acquisition of those business assets, the interest would have been deductible under s. 20(1)(c)(ii). ...

"We assumed that you share our views that the demand promissory note issued as consideration would not result in the Estate having factual control.... ...