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The submission also provided some additional comments and recommendations which address key issues and considerations for plan administrators and members where the acquisition of a third-party annuity is being contemplated. We understand that the draft newsletter has been delayed due to the ongoing consideration of certain pension regulatory elements. ...

Where property is received by a shareholder in consideration for the disposition of a share of the corporation, section 86.1 does not adjust the income inclusion or the deduction of the loss resulting from the disposition of the share. ... Accordingly, the surrender by the Taxpayer of their common shares of US Pubco as consideration for the receipt of common shares of US Pubco Spinco does not constitute an “eligible distribution” contemplated by section 86.1. ...

However, the preamble to subsection 6203(1) of the ITR excludes from prescribed shares a share acquired by a taxpayer under circumstances referred to in section 66.3 of the Act, a share acquired as consideration for a disposition of property in respect of which an election was made under subsection 85(1) or (2) of the Act, and a share that can be considered to have been issued, directly or indirectly, for consideration that includes other shares of the capital stock of the corporation. ... This subsection excludes, among others, a share in a taxable Canadian corporation acquired in consideration of the disposition of a property subject to the election provided for at subsection 85(1) or (2) of the ITA, and a share that may be considered as having been issued, directly or indirectly, in consideration of other shares of the capital stock of the corporation. ...

Can the CRA clarify its position on stock options agreement given to consultants in consideration for services to be rendered? Under what circumstances will the CRA consider the difference between the fair market value of the shares and the exercise price to be consideration paid for services rendered? When will the consultant be deemed to have received this consideration? ...

Scenario 2 When the shares of Newco are received as consideration for the disposition of the Holdco shares, the Newco shares would be considered as substituted property for the Holdco shares. ... X subsequently acquired shares of YCo for consideration consisting of the XCo shares. ...

CRA Response The CRA generally keeps an open mind as to the positions it takes such that when new arguments are presented by a taxpayer or its advisors in the context of an audit, they will be taken into consideration. ... FA2 acquired from FA1 an interest-bearing note issued by FA4 ("Note 1") in consideration for the issuance by FA2 of an interest-bearing note ("Note 2"); 5. FA2 then made a contribution of capital "in-kind" to FA3 by transferring Note 1 to FA3 for no consideration. ...

24 November 2015 CTF Roundtable Q. 4, 2015-0610701C6- Surplus Stripping and GAAR CRA Tags 55(2) 55(5)(f) 245(2) Principal Issues: Taking into consideration the recent Tax Court of Canada decisions with respect to surplus stripping, is the CRA of the opinion that the GAAR would apply to a particular series of transactions the purpose of which is to rely on subsection 55(2) to convert a dividend into a capital gain. ... Question Is the CRA of the opinion that the GAAR applies to this particular series of transactions taking into consideration, among others, the Tax Court of Canada decisions in Evans v. ... [Footnotes omitted] CRA Response A file with a similar series of transactions (the “Transactions”) was recently referred to the GAAR Committee for consideration. ...

TABLE RONDE SUR LES PRODUITS FINANCIERS APFF- CONGRÈS 2005 Question 7 Régime d'options d'achat d'actions En vertu de l'interprétation technique 2005-0112901E5 du 25 avril 2005, l'ARC mentionne que la juste valeur marchande (JVM) d'une action aux fins du calcul de l'avantage imposable en vertu de l'article 7 L.I.R. peut prendre en considération un escompte pour refléter la restriction quant au moment de la vente des actions. ... Michel Lambert 7 octobre 2005 2005-013299 957-8962 TABLE RONDE SUR LES PRODUITS FINANCIERS APFF- CONGRÈS Question 7 Stock Option Plan In technical interpretation 2005-0112901E5 dated April 25, 2005, CRA mentions that the fair market value (FMV) of a share for the purposes of calculating taxable benefit pursuant to section 7 of the ITA may take a discount into consideration to reflect restriction as to the time of selling the shares. ... CRA Response To establish the FMV of a corporate share acquired pursuant to a stock option plan, consideration must be given to the FMV of shares in an open market, and it must be established if there are grounds to consider a discount to take into account the fact that the shareholder cannot dispose of the share until a given date. ...

However, shares of the parent issued as consideration for the shares of the subsidiary are expressly excluded from the rule. ... On the other hand, the provision would not ordinarily apply to conventional common or preferred shares or debt issued by the parent as consideration for the acquisition of the shares of the subsidiary. ... The following transactions are carried out: 1.Y incorporates Buyco and subscribes for $5 million of voting redeemable preferred shares of Buyco. 2.Buyco acquires all of X's shares of Targetco in consideration for $5 million in cash and common shares of Buyco. 3.Buyco winds up Targetco and, but for subparagraph 88(1)(c)(vi), would bump the cost of the shares of Sellco and Keepco to their fair market value. 4.Buyco redeems the preferred shares held by Y and, in satisfaction of the redemption price, transfers to Y its shares of Sellco. ...

Reasons FOR POSITION TAKEN: Subparagraph 80(2)(h)(i) of the proposed amendments to section 80 states that where a new commercial debt obligation is issued by the debtor as consideration for the settlement of a particular commercial debt obligation an amount equal to the principal amount of the new obligation shall be deemed to be paid by the debtor at that time in satisfaction of the principal amount. ... Therefore, if on the issue of the new debt obligation there is no consideration given in satisfaction of that deemed principal amount, it is our view that there would be a forgiven amount in respect of that obligation. ... Department's Position: Subparagraph 80(2)(h)(i) of the proposed amendments to section 80 states that where a new commercial debt obligation is issued by the debtor as consideration for the settlement of a particular commercial debt obligation, an amount equal to the principal amount of the new obligation shall be deemed to be paid by the debtor at that time in satisfaction of the principal amount. ...