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(a) After quoting Friedberg (“a gift is a voluntary transfer of property owned by a donor to a donee, in return for which no benefit or consideration flows to the donor,”), CRA indicated that where, as appeared to be the case here, the trust has no discretion as to whether to make the payment to the charity, the payment does not qualify as a gift and thus, is ineligible for the donation tax credit. ...

7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 8, 2021-0899701C6 F- Post-mortem planning- Pipeline-- summary under Subsection 84.1(1) Summary Under Tax Topics- Income Tax Act- Section 84.1- Subsection 84.1(1) pipeline transaction can be structured to access hard ACB In order to implement pipeline planning, the estate of an individual ("Estate") generally incorporates a new corporation ("Newco") to which it sells shares of a private corporation ("Target"), with or without a tax rollover, in consideration for shares of Newco (the "Shares") or a note issued by Newco ("Note").Newco will remains in existence for at least one year before being merged with Target to form Amalco, whose assets are gradually used to redeem the Shares or Note. ...

A is an advisor or a promoter in respect of the sale of the financial product (notably whether she acted in a manner described in the definition of “advisor” or “promoter” in s. 237.3(1) in respect of the sale of the financial product); the terms of the sale of the financial product and the series of transactions, of the financial product, and of the consideration received by Ms. ...

7 May 2024 CALU Roundtable Q. 5, 2024-1007081C6- Gift of life insurance policy-- summary under Subsection 248(35) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(35) illustrations of the application of ss. 248(35) and (36) to gifts of life insurance policies S. 248(5) would apply where: Within 2 years of the s. 98(5) wind-up of a partnership that had held a policy on the life of the sole proprietor (A) for over 10 years, A donated the policy to a registered charity (a “donation”) (CRA indicated that the period of holding by the partnership would not count for s. 248(25) purposes); An individual transfers a newly-acquired policy for nil consideration to a wholly-owned corporation and, 35 months later, the corporation gifts the policy to a registered charity; A parent purchased a policy on the life of the parent’s 8-year old child and then gifted it to the child on attaining 21, with the child then making a donation within 3 years (s. 248(36) did not apply since the policy had been held by the parent for over 10 years); and A transfers a policy on A’s life that A had held for 15 years to A’s spouse (B) on a s. 146(8.1) rollover basis, and B makes the donation within 3 years thereafter (again s. 248(36) would not apply, and B’s gain under s. 148(7) would be attributed to A). ...

Regarding what was a housing unit [“logement”], with the questioner referring, as examples for consideration, a seniors’ residence, or business premises with a fully-equipped kitchen where dinner was served to the staff, CRA noted that these proposals were introduced as part of legislation “to make life more affordable and build an economy that works for everyone” and stated that “[i]n such a context, the CRA is prepared to interpret the expression ‘housing unit’ with some flexibility” but then stated: That said, with respect to your specific questions, they are currently under review and will be the subject of consultations with representatives of the Department of Finance in order to provide you with further clarification on the scope of this term. ...

” was essentially as follows: In Year 1: Holdco1 transferred goodwill with an FMV of $500 and nominal cost amount on a rollover basis to Opco in consideration for preferred shares with a $500 redemption amount and nominal dividend entitlement; and Holdco2 subscribed a nominal amount for Opco common shares. ...

" (Full paper released on 22 December 2023) stated that, where a shareholder acquires preferred shares as consideration for the transfer of property on a tax deferred basis, the accrued gain on the property, when subsequently realized by the corporation, would be viewed as contributing to the gain on the preferred shares, and accordingly would be included in the preferred shares’ safe income. ...

5 October 2012 APFF Roundtable, 2012-0454061C6 F- Transfer of a Lossco to a related corporation-- summary under Subsection 50(1) Summary Under Tax Topics- Income Tax Act- Section 50- Subsection 50(1) lossco with no assets or liabilities cannot be insolvent Example 1 Son claims an ABIL under s. 50(1) with respect to his share investment in a wholly-owned corporation (Lossco), which had ceased active business operations in the year, and then transfers his shares of Lossco at the beginning of the following year to a corporation wholly-owned by his Father (Profitco) for consideration of $1, with Lossco then being wound-up into Profitco under s. 88(1). ...

Each Original Holder transfers its Opco shares to a Newco of which he or she is the sole shareholder in consideration for Newco shares, exchanges its shares of Newco for Newco preferred shares and the family trust subscribes for Newco participating shares. ...

10 October 2014 APFF Roundtable Q. 15, 2014-0538151C6 F- 2014 APFF Roundtable, Q. 15- Section 143.4 & Reverse Earn-out-- summary under Excluded Obligation Summary Under Tax Topics- Income Tax Act- Section 80- Subsection 80(1)- Excluded Obligation reverse earnout obligation of Buyco re Target was excluded obligation A newly formed corporation ("Newco") purchases the shares of a target corporation ("Target") for consideration that includes an earn-out clause (resulting in a debt which is subsequently forgiven). ...