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Clauses 6202.1(1)(a)(iii)(A) and (B) provide that the new share will not be a prescribed share under subparagraph 6202.1(1) (a) (iii) of the Regulations if, inter alia, the new share is convertible or exchangeable only into another share of the corporation that, if issued, would not be a prescribed share ("non-prescribed share") and, if all the consideration receivable by the holder on the conversion or exchange of the new share is limited to such a non-prescribed share receivable on the conversion or exchange.       ... There must be some sort of benefit or payment etc. conveyed to the shareholder on the conversion that may reasonably be  considered to be a repayment or return by the corporation (or a specified person) of all or part  of the consideration for which the share was issued. 2.      ... Where a person agrees to acquire flow-through shares and non flow-through shares from a corporation for fair market value consideration and the consideration for which flow-through shares are to be issued is determined within 60 days of entering into the flow-through share agreement, and the terms of the flow-through shares provide for their conversion into additional non flow-through shares of the corporation on a fair market value basis, it is our view that paragraph 6202.1(2)(a) of the Regulations will not apply to cause the flow-through shares to be prescribed shares. ...

Reasons: QR is defined in subsection 125.7(1) of the Act to mean “the inflow of cash, receivables or other consideration arising in the course of the ordinary activities of the eligible entity — generally from the sale of goods, the rendering of services and the use by others of resources of the eligible entity — in Canada in the particular period”, subject to certain exclusions or exceptions. ... As noted in the definition, in determining whether an eligible entity has qualifying revenue, two tests must be satisfied: there must be an inflow of cash, receivables, or other consideration (the “Inflow Test”), and the inflow must arise in the course of the ordinary activities of the eligible entity generally from the sale of goods, the rendering of services, and the use by others of resources of the eligible entity (the “Activities Test”). ... Rather, in such a scenario, we concur with your position that it is solely the Management Fee paid to the eligible entity which is an inflow of cash, receivables, or other consideration arising in the course of the ordinary activities of the eligible entity from the rendering of services. ...

The test found in subparagraph 14(5)(a)(iv) (referred to as the mirror image test) provides that where the consideration given by him therefor (the fishing privilege) was such that, if any payment had been made by him after 1971, for that consideration, the payment would have been an eligible capital expenditure of the taxpayer. ...

Whether a beneficial interest was acquired for consideration payable to the trust or to any person who has made a contribution to the trust is a question of fact, however there is nothing particular in the Act prohibiting a communal organization from being a personal trust. The fact that members of a congregation must devote their working lives to the activities of the congregation does not mean that their interests in the trust are acquired for consideration payable directly or indirectly to the trust. ...

The payment was a gift, given freely with no consideration, to help the taxpayer who was XXXXXXXXXX. ... The term "gift" is not defined in the Act, but is generally regarded as a voluntary transfer of property without consideration. ... In the case of The Queen v Blanchard [95 DTC 5479], the FCA found that a payment arising from the satisfaction of an obligation that arose under an agreement was received as "consideration or partial consideration" for entering into the contract of employment. ...

In the event no CCA or CEC deduction has been claimed, a taxpayer would normally elect at an amount in excess of the UCC or 4/3 the CEC (ie. an amount equal to the designated amount under 110.6(19) of the Act), as the case may be, and would take back non-share consideration equal to that elected amount. ... Shortly after the CGD election, the taxpayer transfers the asset to his corporation, elects under subsection 85(1) at $30,000, and takes back 1 share with nominal value and non-share consideration equal to $30,000. ... Example 2: Lets now use the same facts as example 1, however, the taxpayer elects under subsection 85(1) at 4/3 of his CEC balance to avoid any immediate subsection 14(1) implications, and takes back non-share consideration of $18,666.66. ...

Standby time (i.e, time during which an employee was required to be available for work, but was not requested to work) should not be taken into consideration in establishing the percentage of employment duties performed on or off reserve. ... For purposes of the Guidelines that take into consideration the location where the duties of employment are performed, the most relevant locations are the locations at which the employee is required to perform the duties (position taken in other files). ... That is, for purposes of the Guidelines that take into consideration the location where the duties of employment are performed, in our view, the most relevant locations are the locations at which the employee is required to perform the duties. ...

On XXXXXXXXXX ("Parentco"), a US corporation, subscribed for XXXXXXXXXX Class A Special shares (issued from treasury) of XXXXXXXXXX ("Canco"), its Canadian subsidiary corporation, in consideration for the cancellation of $XXXXXXXXXX of indebtedness of Canco to Parent. 2. ... Subsection 25 of the CBCA provides that a share cannot be issued until it has been paid for: "25. (1) Issue of shares- Subject to the articles, the by-laws and any unanimous shareholder agreement and to section 28, shares may be issued at such times and to such persons and for such consideration as the directors may determine. (2) Shares non-assessable- Shares issued by a corporation are non-assessable and the holders are not liable to the corporation or to its creditors in respect thereof. (3) Consideration- A share shall not be issued until the consideration for the share is fully paid in money or in property or past services that are not less in value than the fair equivalent of the money that the corporation would have received if the share had been issued for money. (4) Consideration other than money- In determining whether property or past services are the fair equivalent of a money consideration, the directors may take into account reasonable charges and expenses of organization and reorganization and payments for property and past services reasonably expected to benefit the corporation. (5) Definition of "property"- For the purposes of this section, "property" does not include a promissory note or a promise to pay, that is made by a person to whom a share is issued, or a person who does not deal at arm's length, within the meaning of that expression in the Income Tax Act, with a person to whom a share is issued. ...

Principal Issues: A corporation assumed a debt repayable in the future for consideration equal to the debt's present value. ... Pursuant to the agreement, A Co was to receive $XXXXXXXXXX from E Co as consideration for agreeing to pay C Co $XXXXXXXXXX. ... In our view, the fact that A Co has a legal obligation to repay $XXXXXXXXXX in XXXXXXXXXX is an important consideration but it is not the only consideration in determining the appropriate amount to include in A Co's capital. ...

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. ...