Search - consideration

The basic rule under subsection 84.1(1) is that the maximum amount that can be received by the individual transferor from the purchaser corporation as proceeds in the form of any non-share consideration and the paid-up capital of any share consideration is restricted to the greater of the paid-up capital of the transferred shares and what is generally referred to as the individual's arm's length actual adjusted cost base of the shares. ... X's transfer of the 45 voting common shares of Aco to Yco would depend on a consideration of all of the relevant facts of the particular situation. ... Y had transferred his shares of Aco to his own wife for consideration consisting of a promisory note, the provisions of paragraph 84.1(2)(a.1) would have applied to reduce the wives' adjusted cost base of such shares for purposes of section 84.1 by an amount equal to the capital gains exemption claimed by her husband in respect of such transfer. ...

For the purpose of determining the specific country in which a particular business is carried on, different factors should be taken into consideration, including where the operations in substance or profit generating activities take place. ... Whether a particular apportionment of the consideration paid is reflective of the actual payments described in the exemption under subparagraph 212(1)(d)(vi) depends namely on the legal nature of what is being provided under the mixed contract, the legal relationships between the parties and the facts of the particular situation including the commercial reality of the parties and the consideration paid in these circumstances. In determining if the apportionment provided under the License Agreement is prima facie reflective of the obligation of the parties under subsection 212(1), consideration could be given, namely, to whether the parties had divergent interests in respect of the apportionment. ...

Parnanzone Appeals and Referrals Division Tel. (613) 957-9232 Subject:  19(1)  Settlement Offer STALLED We are forwarding the ministerial correspondence file (yellow docket) for consideration and reply by your office since it involves a settlement offer for the taxpayer's outstanding appeal to the Tax Court of Canada. 24(1) As regards 19(1) remission request itself, it cannot be dealt with at this time because of the outstanding appeal.  ...

Canada Customs and Revenue Agency Response As there is insufficient facts to deal with the impact of the reciprocal guarantees, our response below first deals with the situation where Canco guarantees the loans of USco for no consideration and then the situation where USco guarantees the loans of Canco for no consideration. ...

4 August 2016 Internal T.I. 2016-0645521I7- 90(6) & sale of creditor affiliate Unedited CRA Tags 90(6); 90(8)(a); 90(14) Principal Issues: Whether the exception in 90(8)(a) would apply where the "creditor affiliate" is sold for cash consideration before the 2-year time limit? ... Facts For illustrative purposes, we will use the following assumed facts: • A non-resident corporation (Foreign Parent) owns all the issued and outstanding shares of a corporation resident in Canada (Canco) and another non-resident corporation (SisterCo). • Canco owns all the issued and outstanding shares of another non-resident corporation (FA). • In 2013, FA makes a loan to SisterCo. • Before the expiration of the two year time limit specified in paragraph 90(8)(a), Canco sells its shares of FA to Foreign Parent for cash consideration. • The loan remains outstanding for more than two years. ...

Parent will receive new shares of Canadian Parent as consideration for its shares of Holdco and Canadian Parent will receive all of the shares of Amalco as consideration for its shares of CanSub. ...

Reasons: Subsection 248(1) defines property broadly to mean property of any kind whatever whether personal or incorporeal August 9, 2010 Kitchener / Waterloo TSO HEADQUARTERS Appeals Division Income Tax Rulings Directorate Attention: Ms Carolyn Kropf Richard Aronoff Team Leader (613) 941-7239 2010-036682 Application of 160(1) to the Assumption of a Contract This is further to John Stuber's email of April 15, 2010, wherein he requested an interpretation as to whether subsection 160(1) of the Income Tax Act applies where a successor corporation assumes, for no consideration, a contract held by a predecessor corporation while the latter was indebted for tax. ... Since the transfer of the contract was between two companies that were not dealing at arm's length, both companies are jointly and severally liable under subsection 160(1) to pay an amount equal to the lesser of: the amount by which the fair market value of the property at the time it was transferred exceeds the fair market value at that time of the consideration given for the property, and; the total of all amounts each of which is an amount that the transferor is liable to pay under this Act in or in respect of the taxation year in which the property was transferred or any preceding taxation year. ...

Pursuant to paragraph 160(1)(e), a transferor and a transferee are jointly and severally liable to pay the former's tax debt up to the amount by which the value of the property transferred exceeds the fair market value of the consideration given by the transferee. ... In that case the Federal Court of Appeal rejected the principle in Laframboise, Michaud, and Ferracuti and held that the expenditure on account of living expenses was not consideration and did not factor into the calculation of the amount transferred. ...

25 August 2009 Internal T.I. 2009-0333751I7- Apprenticeship Training Tax Credit Unedited CRA Tags s. 89, 38, 96 and 97 of the TA XXXXXXXXXX 127(9) Principal Issues: Can an expenditure be taken into consideration for multiple purposes in computing the Ontario Apprenticeship Training Tax Credit, any of the Ontario research and development tax credits and the federal investment tax credit? ... IT Rulings document 2008-0285401C6 clarifies that an expenditure which qualifies both as a scientific research and experimental development expenditure under section 37 of the Income Tax Act ("ITA") and an apprenticeship expenditure under subsection 127(9) of the ITA may be taken into consideration twice for the purposes of computing investment tax credits at the end of a taxation year. ...

Under subparagraph 160(1)(e)(i), the amount is the excess of the fair market value of the property transferred over the fair market value of the consideration given for the property. ... Under paragraph 325(1)(d), the amount is the excess of the difference of the fair market value of the property transferred net of the consideration given for it, and any amount assessed for income tax. ...