Search - consideration

The property was sold to the sole shareholder’s corporation for non-share consideration having a total value of $1.4 million. ... Thus, in your example, in our view that there would be no recapture; the $.8 million excess consideration taken from the corporation is most accurately described as an appropriation from the corporation. ...

Position TAKEN: If said amount is incurred as consideration for services to be rendered, or for insurane in respect of a period, after the end of the year, no deduction. ... In our view, the amount paid for an extended warranty would be subject to subsection 18(9) of the Act where the said amount may reasonably be regarded as having been incurred as consideration for services to be rendered, or for insurance in respect of a period, after the end of the year. ...

Reasons: Even though the quantum of the award depends upon the profitability of the corporate group for a given fiscal year, the arrangement is still "an agreement to issue shares" (albeit for no consideration) within the meaning of section 7. ... Also, the employee will not be entitled to a deduction under paragraph 110(1)(d) of the Act since the shares are acquired for no consideration. ...

Le contribuable est d'avis que, dans le calcul du « coût en main-d'oeuvre » de OPCO, seule la partie salaires des gestionnaires de Gesco relative aux honoraires devrait être tenue en considération. ... Réponse Quand des frais de gestion incluent des salaires, des frais généraux et d'autres items, nous sommes d'avis que le contribuable peut prendre en considération seulement les salaires dans le calcul du coût de la main-d'œuvre, telle que cette expression est définie à l'article 5202 du Règlement de l'impôt sur le revenu. ...

A transfer of property to a registered charity is not a gift for the purposes of section 118.1 of the Income Tax Act (the "Act") if there is consideration of any kind being received in return. The word "gift" has been interpreted by the Department as being a voluntary transfer of property without consideration and without conditions.  ...

In our view, where paragraph (d) of the QSBCS definition applies, that paragraph will require that the reference to "more than 50%" in clause (c)(ii)(B) of the QSBCS definition be read as a reference to "all or substantially all" in respect of other corporations connected (within the meaning of subsection 186(4) of the Act) with the corporation whose shares are under consideration, for the period of time specified in that paragraph. ... Whether or not this factor, as well as, all other requirements of the small business corporation or QSBCS definitions are satisfied involve questions of fact which can only be decided after consideration of all the relevant facts of a particular situation. ...

First the application or non-application of a plan provision should not be based solely on the considerations of Revenue Canada, Taxation, particularly when alternative courses of action based on that consideration are not clearly detailed in the plan.  ...

Based on US jurisprudence, a signing bonus arises from a unilateral contract representing one party's promise to pay money in consideration for another party's signature on a contract. ... The Queen, 95 DTC 871 (T.C.C.), the Court described an inducement payment as an amount granted in consideration of an obligation on the recipient's part. ... Canada, [1998] 1 S.C.R. 147, concerning the computation of profit, unless the inducement is of a capital nature because it can be viewed as consideration for the disposition of a capital property by the taxpayer. ...

Position Adoptée: Part of the exploration expenses incurred should constitute a consideration for a right to a share of the seller. ... The administrative position stated in Interpretation Bulletin IT-125R4 with respect to the simple farm-out would apply with respect to the acquisition of the interest in the unproven resource property in consideration for the CEE that are not part of the consideration for the warrants. The property would not have an acquisition cost for the purchaser and the consideration for that part of the deal would be considered CEE if the expenses otherwise qualify. ...

The provision does not preclude the filing of an amended election in the circumstances under consideration. ... There are two possible positions with respect to the circumstances under consideration. ... In other words, this provision does not preclude the filing of the amended election in the circumstances under consideration. ...