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21 July 2009 Internal T.I. 2009-0322591I7 F- Déduction des intérêts-- summary under Payment & Receipt Summary Under Tax Topics- General Concepts- Payment & Receipt replacement of note with capitalized note with note for full amount did not constitute payment by novation The taxpayer purchased assets from the vendor (apparently, a non-resident) in consideration for shares of the taxpayer and interest-bearing debt, that was evidenced by a note providing that unpaid interest could be added to the principal of the note. ...

21 July 2009 Internal T.I. 2009-0322591I7 F- Déduction des intérêts-- summary under Paragraph 212(1)(b) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(b) issuance of replacement promissory note for amount of previous principal plus capitalized interest was not a crediting of such interest The taxpayer purchased assets from the vendor (apparently, a non-resident) in consideration for shares of the taxpayer and interest-bearing debt, that was evidenced by a note providing that unpaid interest could be added to the principal of the note. ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Paragraph 212(1)(d) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d) lump sum non-contingent payment for distributorship right was not a royalty 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. ...

13 July 2018 Internal T.I. 2017-0713301I7- Assumption of accrued interest-- summary under Paragraph 212(13.1)(a) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(13.1)- Paragraph 212(13.1)(a) withholding when debt of Canadian partnership assumed by sub As part of the consideration for the drop-down of the assets of a Canadian partnership (whose partners were Canco and its wholly-owned Canadian subsidiary) to a wholly-owned U.S. subsidiary (“Debtor Affiliate”), Debtor Affiliate assumed the loan including accrued interest thereon that had been owing by Partnership to another Partnership subsidiary (“Creditor Affiliate”), and Creditor Affiliate released the Partnership from its obligations on the Loan. ...

. … [I]n this context … the consideration to be received by customers is … the XXXXXXXXXX service offered by the corporation. ...

Loss loss on equity swap entered into in monetization transaction was on capital account In connection with its monetization of the shares of a corporation, the taxpayer transferred the shares of that corporation to a Newco ("Corporation2") in consideration for shares of Corporation2, entered into an equity swap with a financial intermediary with respect to the shares of Corporation2 under which it agreed to pay the appreciation in the value of the shares of Corporation2 above a ceiling level, and the counterparty agreed to pay the depreciation in value of the shares of Corporation2 below a floor level, and the taxpayer borrowed money from another financial institution. ...

23 March 2001 Internal T.I. 2000-0056097 F- Roulement interne-- summary under Subsection 84(1) Summary Under Tax Topics- Income Tax Act- Section 84- Subsection 84(1) s. 84(1) deemed dividend where individual’s low-PUC common shares are exchanged with the corporation for high-PUC preferred shares and there is an s. 85(1) agreed amount at FMV On an internal crystallization transaction, the corporation purchases the individual’s common shares, having a nominal stated capital, in consideration for the issuance of preferred shares with an equivalent FMV; and the agreed amount in their s. 85(1) election is also that FMV. ...

2 February 2001 Internal T.I. 2000-0058127 F- Convention d'émission d'actions-- summary under Subsection 7(2) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(2) s. 7(2) could apply if shares were held by the employer for later acquisition by the employee In the course of a general discussion, the Directorate noted that the application of s. 7 was not restricted to stock options and that it could apply where the employer issued shares for no consideration as a gift or reward, and that where there was an agreement of the employer to hold shares in trust, conditionally or unconditionally, on behalf of an employee until certain conditions were satisfied, then pursuant to s. 7(2), the employee was deemed, for the purposes of ss. 7, 110(1)(d) and (d.1), to acquire the shares at the time the trust begins to hold the shares for the employee. ...

However, "if the agreement is structured in a manner that the incidents of beneficial ownership of the securities remain with the lender the transaction may not be a sale and the cash consideration paid to the lender could in such case be considered a loan made by the borrower to the lender". ...

30 October 2002 Internal T.I. 2002-0134077 F- ATTRIBUTION DES GAINS EN CAPITAL-- summary under Subsection 74.2(1) Summary Under Tax Topics- Income Tax Act- Section 74.2- Subsection 74.2(1) indirect transfer where individuals transfer shares to their Holdcos, who transfer such shares to the individuals’ respective spouses Two individuals transferred the shares they held of a particular company to their respective holding companies which, in turn, each disposed of a portion of those shares to the individuals’ respective spouses in consideration for non-interest-bearing notes. ...