Search - consideration

Although subsection 251(2) of the Act does not explicitly refer to a trust in the definition of “related persons”, it is our view that, in applying that definition, the fact that the trustee(s) of the trust are the legal owners of any shares of a corporation held by the trust, should be taken into consideration. ...

A transfers the 100 common shares of the capital stock of Opco to Gesco in consideration for 100 common shares of the capital stock of Gesco, having a paid-up capital of $100,000. ...

As a result of a dispute between X and the other shareholders, X wishes to dispose of his or her shares of the capital stock of Opco in consideration for $200,000 in cash. ... X would dispose of his OPCO shares for consideration equal to the fair market value of such shares at the time of disposition and that OPCO would be a "private corporation" as defined in subsection 89(1) of the ITA. ...

The purchaser issues in consideration a $50,000 promissory note and preferred shares with a redemption value of $100,000. Provision is made in the legal documents that the declared capital of the preferred shares is $100,000, that is, the value of the consideration received. ...

Given the aforementioned views expressed in the 2009 conference response, such that consideration be given to each class of shares in the determination of whether the shares are "primarily and regularly traded" for purposes of Article XXIX-A(2)(c), the CRA expressed its concern in respect of the super-voting shares. ... For purposes of applying this test, the relevant expenses and gross income under consideration are those from the fiscal period immediately preceding the period in which the test is being applied. ...

An individual has transferred his partnership interest to a holding corporation ("Holdco") in consideration for preferred shares of the capital stock of Holdco. ... Therefore, it is possible that part of the safe income generated by Subco immediately before the time of the transfer of the interest in the partnership could be reasonably attributable to the preferred shares of the capital stock of Holdco received by the individual as consideration for the transfer of the partnership interest. ...

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. ... Any consideration paid to the corporation by the shareholder for the use of the property is then subtracted from the imputed rent. ...

However, we are seeing an increasing number of transfers of the "management right" to the list from one representative to another representative in the same brokerage firm, for consideration. ... At all times, the ultimate cost of the consideration given to the departing representative is born by the other representative who is acquiring the right to manage the new client list. ...

CRA Response Paragraph 7(1)(b) of the ITA provides that, if an employer has agreed to issue its shares to one of its employees, the employee who has transferred or otherwise disposed of rights under the agreement to a person with whom he was dealing at arm's length, is deemed to have received, because of his employment and in the taxation year in which he made the disposition, a benefit equal to the amount, if any, by which the value of the consideration for the disposition exceeds the amount that he has paid to acquire those rights. ... The ITA does not provide for any deduction in computing the employee's income if the consideration for the disposition of his options is a debt receivable from the employer. ...

Le paragraphe 41 mentionne que l'imminence du décès devrait être prise en considération ainsi que la possibilité que l'assuré recouvre la santé et ne meurt pas. ... Assuming that the fair market value of the policy is determined by a qualified actuary, taking into consideration the factors indicated above, is the CRA of the opinion that the charity may issue a receipt for an amount equal to this fair market value, even if it exceeds the cash surrender value of the policy? ...