Search - consideration

As indicated in paragraph 181 of the Commentary, determining whether obtaining the benefit of the treaty was one of the principal purposes of an arrangement or transaction includes determining if the benefit was a principal consideration and justified entering into any such arrangement or transaction: “181. A purpose will not be a principal purpose when it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining the benefit was not a principal consideration and would not have justified entering into any arrangement or transaction that has, alone or together with other transactions, resulted in the benefit.” ...

To the extent that you encounter such potential concerns they should be submitted to the Department of Finance for consideration. ... Assumption of the debt as consideration for the assets would result in the agreed amount being deemed to be increased by paragraph 85(1)(b). ... This issue has been brought to the attention of the Department of Finance for their consideration. ...

The Department explained that despite this decision, provision was not made in paragraph 20(1)(e) of the Act to allow payments made in consideration for using funds to be deducted. ... In short, the Department feels that no provision is made in paragraph 20(1)(e) to allow payments made in consideration for using borrowed funds to be deducted. ... Transactions prior to the sale which are part of the series of transactions that will include the sale, occur successively as follows: Step 1 Opco incorporates Filco Step 2 Opco disposes of a property to Filco in consideration for common shares of Filco. ...

CRA's Response Whether a person acquires beneficial ownership of a property is a question of fact that can only be made after consideration of all the facts and circumstances of a particular case. ...

The term "shares or securities" is not defined for the purposes of paragraph 20(1)(bb); however the judicial consideration of the term "securities" suggests that it should be interpreted broadly, and in the popular sense. ...

Provided that (i) the Price Adjustment clause is valid, (ii) it is still possible to adjust the price of the common shares agreed upon, the value of the preferred shares received and the consideration given for the preferred shares redeemed or sold and (iii) the terms of the clause have effectively been implemented, the CRA will take that Price Adjustment clause into account when considering whether the conditions to apply subsection 75(2) are met. ...

In this regard, certain considerations result from the manner in which benefits under Article X(6) are calculated. ...

This may be a relevant consideration where, for example, the insured has not appointed the named persons in the insurance designation in their capacity as trustees of the estate or where the policyholder was not the taxpayer (bolding added).” ...

The analysis should be carried out for each year and the adjustments should take into consideration any changes in the shareholdings. d. ...

In order to have a "readily obtainable fair market value", the interests that are not listed on a stock exchange must have, throughout the holding period, conditions attached that require the non-resident entity to accept the surrender in consideration of a price determined and payable in accordance with the conditions. ...