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Letter forwarded to them for their consideration. December 17, 1997 HEADQUARTERS HEADQUARTERS Trust Accounts Division M.P. ... We have advised the taxpayer that its request for confirmation of the application of an administrative position with respect to withholding taxes has been forwarded to your Division for your consideration. ...

" In ITTN-44, the CRA commented that, in the context of estate freezes of private corporations: “Provided that the owners of all the shares of the corporation act in a manner consistent with the assumption that no value attaches to the voting rights, and the rights are eventually extinguished for no consideration, the CRA will generally not attribute value to the rights. If the holder of the rights uses them to run the corporation in conflict with the common shareholders or seeks or is offered consideration for them, it would be difficult for the CRA to ignore this evidence of value.” ...

A vendor (the “Vendor”) sells all of its shares of a corporation (the “Target”) to a purchaser corporation (the “Purchaser”) in consideration for, exclusively, shares of the Purchaser. The agreement governing the purchase and sale of the Target shares (the “Agreement”) requires the Vendor to place some of the share consideration received from the Purchaser in escrow (the “Escrow Shares”) pending any downward post-closing adjustments to the purchase price. ...

For trust law purposes, the trust receives the cash consideration as a part of its capital (none of the provisions of the trust deem the proceeds from the redemption of shares to be ‘income’ of the trust). The trustees distribute the cash consideration as a capital distribution to the capital beneficiaries of the trust before the end of the trust’s taxation year in which the shares were redeemed. ... To the extent that any payment of the amount is made in-kind, other legal and tax considerations would need to be taken into account. ...

The income derived by FA2 from payments received from FA1 in consideration for reinsuring the contracts of FA1, is deemed to be income from an active business pursuant to subparagraph 95(2)(a)(ii). Similarly, the income derived by FA3 from payments received from FA2 in consideration for reinsuring the risks assumed by FA2, is deemed to be income from an active business pursuant to that same subparagraph. ...

Position Adoptée: Non Raisons: Une nouvelle note de service sur les prix de transfert sera éventuellement publiée afin de prendre en considération la nouvelle version des Principes de l'OCDE publiée en 2010 TABLE RONDE SUR LA FISCALITÉ FÉDÉRALE DU 5 OCTOBRE 2012 APFF- CONGRÈS 2012 Question 22 Nouvelle Circulaire – Prix de transfert international (JFT) Au Canada, les prix de transfert sont essentiellement régis par l'article 247 L.I.R. et par la Circulaire d'information 87-2R publiée par l'ARC. ... Cependant, une nouvelle note de service sur les prix de transfert sera éventuellement publiée afin de prendre en considération la nouvelle version des Principes de l'OCDE publiée en 2010. ...

The CRA listed the below as an example of such transaction: “A note or other property (other than assets owned by the dividend payer at the beginning of the series that includes the redemption) received by a dividend recipient as consideration for a redemption of shares in a reorganization that is exempt under paragraph 55(3)(a) is used by a person to generate ACB that is significantly greater than the ACB of the shares that were redeemed.” ... Can the CRA confirm that a subsequent transaction to ‘use’ the note or other property (including cash) received as consideration for a share redemption, such as the transfer of the note to Newco in # 2015-0604521E5, is a necessary trigger for a GAAR determination with respect to paragraph 55(3)(a)? ...

A determination as to whether a loan can be considered to have been rec'd "because of" or "as a consequence of" employment will be made for purposes of 80.4(1) with the comments in Hoefele given due consideration Reasons: Note: the following speaking notes were prepared for the 1996 annual meeting of the Canadian Tax Foundation. ... A determination as to whether a loan can be considered to have been received "because of" or "as a consequence of" employment will be made for the purposes of subsection 80.4(1), with the comments in Hoefele on this point given due consideration. ...

In the case of rescission, the investor may become entitled to a full refund of all consideration paid on the acquisition of the shares issued to such investor. Paragraph 6202.1(1)(b) of the Income Tax Regulations provides that a share will be a prescribed share, and therefore not a flow-through share, where, inter alia, at the time it is issued, any person has, either absolutely or contingently, an obligation to make a payment, either immediately or in the future, that may reasonably be considered to be, directly or indirectly, a repayment or return by the corporation of "all or part of the consideration for which the share was issued... ...

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). ... B)Would the answer be the same if the transferee only assumed the excess debt as consideration for redeeming some of its shares issued to acquire the target assets from the transferor? ...