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However, we note that the Province has, in their letter dated December 22, 1999, described the Standard Agreement to include a requirement that the securities lender must pay interest on the cash consideration it receives from the securities borrower in consideration for the securities. ... If the agreement is structured in a manner that the incidents of beneficial ownership of the securities remains 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. ...

The Company traded-in the first yacht as partial consideration for its share of the second yacht. ... The calculation of the amount or value of the benefit is usually based on the fair market rent for the property minus any consideration paid to the corporation by the shareholder for the use of the property. ... The consideration paid to the corporation by the shareholder for the use of the property. ...

Furthermore, even if the debt had been disposed of, subparagraph 40(2) (g) (ii) would deem the capital loss to be nil because the debt was not laid out for the purpose of earning income from business or property nor was it part of the consideration in the disposition of property. ... In our view, the Department would not be justified in determining capital gains on this disposition without consideration to the repayment of the debt by the Taxpayers.  ... Based on the above, in our opinion, the repayment of the loans should be taken into consideration in the calculation of the capital gain on the Taxpayers' disposition of the shares. ...

The vendor's representative,        19(1) 19(1)    is of the view that the proceeds of disposition on the sale of the  property for the purposes of section 116 of the Act include the consideration represented by the purchaser's assumption of the take-or-pay obligation, and that the deduction available to the vendor pursuant to subsection 20(24) of the Act may be deducted in the computation of the proceeds of disposition of the property in determining the taxes payable as described in paragraph 116(5.2)(a) of the Act. ... In both cases, the cash consideration would be $175, although, in both cases, the total paid for the property would be $200. ... So far, our views coincide with 19(1)   as, incidentally, both do with David Ross, a tax lawyer specializing in oil and gas matters, on page 7 of his article "Tax Considerations Relevant to the Purchase of Assets and the Purchase of Shares" in the Canadian Petroleum Tax Journal, Vol. 1, No.1. ...

While we cannot comment definitively as to whether Old 245(1) would apply to the situations under consideration by you without a more complete understanding of all of the relevant facts, we consider that it will generally not be possible to apply Old 245(1) to deny capital cost allowance claims and terminal losses of a partnership that are based on the actual, bona fide (albeit historical) cost of the depreciable property to the partnership. ... There is no provision of the Act which requires the UCC of an asset of a partnership to be revalued to fair market value other than subsection 13(7) which does not apply in the circumstances under consideration.  ... Her Majesty The Queen, 88 DTC 6427 (F.C.T.D.) may have some bearing on the cases under consideration by you. for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch ...

Our Comments Consideration should first be given to the ability of the former spouse to have an RCA established by a holding company. ... Consideration should also be given to the combined effects of paragraphs 56(1)(x) and (z) and subsection 70(2) of the Act as they may apply in such a situation. ... For example, it may be found that the amount is being transferred as consideration for a disposition of some property. ...

A company can issue its own shares as "consideration for the acquisition of property", as Lord Greene M.R. said. ... When the directors of a CBCA corporation determine the consideration for the issue of the shares as consideration for property, it is no different from directors of a corporation deciding to issue a certain number of par value shares as consideration for property. ... Rather than consideration being referable to the product of the par value of the share times the number of shares issued, the consideration is referable to the stated capital of the shares being issued as determined by the directors. ...

" The courts have taken the view that, for the purpose of computing income to the taxpayer, the value of what is received has to be taken into consideration even though it is neither realized nor realizable. ... Under these circumstances, it is reasonable to conclude, in the absence of evidence to the contrary, that the taxpayer is receiving consideration which is worth the fair market value of the asset transferred. Generally speaking, when beneficial ownership of a property is transferred from a taxpayer to another party in exchange for consideration, the profit on a sale should be recognized at the time of the disposition. ...

("Newco"), and then sell the shares of Opco, which owned the remaining assets, to Purchaser for FMV consideration of $XXXXXXXXXX. In the series of transactions, capital gains accrued on the shares of Opco were triggered on a section 85 rollover to Opco for consideration of Class D common shares and Class B preferred shares of Opco. ... Subsequently, the Taxpayer and the Spouse claimed a deferral of the gain arising from the disposition of these Class A common shares to Opco in consideration (part) of Class B preferred shares. ...

Therefore, Parent's Safe Income on Hand for each year in which it deducted an SPTC would be equal to the income earned in that particular year net of its tax liability after the reduction resulting from the SPTC claimed for that particular year, but taking into consideration the outlay in respect of the cost reduction referred to herein. ... However, the negative effect of the Part VII tax would be offset by that portion of the share contribution received from Subco1 that represents the consideration paid by Subco1 for the SPTC. ... Safe Income on Hand Parent SPTC  $100 127.2(8) cost reduction (100) Net effect on Safe Income on Hand Subco1 Part VII tax liability $(100) SPTC 100 127.2(8) cost reduction (100) Consideration received by Subco1 for the SPTC issued to Parent •      Subco2 ITC 0 Part VII tax liability $(100) Consideration received by Subco2 for the SPTC issued to Subco1 •      Subco2 ITC (Year 2 and subsequent 4 years) $ 20 * *Assumes that the tax effect of the capital cost allowance is realized over a period of five years. ...