Search - consideration

[T]he comments of the Supreme Court of Canada on the considerations mentioned in previous paragraphs could still be relevant. ...

26 May 2016 IFA Roundtable Q. 10, 2016-0642101C6- 93.2 & 95(2)(c)-- summary under Subsection 93.2(3) Summary Under Tax Topics- Income Tax Act- Section 93.2- Subsection 93.2(3) s. 95(2)(c) rollover can apply on a dropdown of shares made to an LLC as a contribution of capital rather than for “share” consideration Canco owns all the shares of FA1, which owns all the shares of FA2 and all the member interests of FA3, which is a “non-resident corporation without share capital” as per s. 93.2(1). ...

26 May 2016 IFA Roundtable Q. 10, 2016-0642101C6- 93.2 & 95(2)(c)-- summary under Paragraph 95(2)(c) Summary Under Tax Topics- Income Tax Act- Section 95- Subsection 95(2)- Paragraph 95(2)(c) dropdown of shares made to an LLC as a contribution of capital deemed by s. 93.2(3) to be for "share” consideration FA1 (wholly-owned by Canco) transfers all of the shares of FA2 to another non-resident subsidiary of FA1, viz., a non-share corporation (“FA3”), as a capital contribution, i.e., no new member interests are issued by FA3. ...

X, who has for a number of years been the policy holder of a term life insurance policy (for 100 years) without a cash surrender value and an adjusted cost basis of $10,000, transfers the policy to his wholly-owned corporation (ABC Inc.) for no consideration, so that it becomes the policyholder and beneficiary and assumes the premium-payment obligations. ...

The Court of Quebec ruled in favor of the contributor in a decision animated more by considerations of fairness than by an analysis of the legislative provisions. ...

CRA responded: [W]e believe that the partner, in consideration for the $100,000 payment, acquired a greater interest in the partnership by acquiring part of a property. ...

8 October 2010 Roundtable, 2010-0373611C6 F- Certificat avant distribution-- summary under Subsection 159(2) Summary Under Tax Topics- Income Tax Act- Section 159- Subsection 159(2) repayment of note to unsecured creditor was a distribution A trust, whose sole trustee is a corporation, acquired, as its only asset, a property valued at $50 million (the "Property") in consideration for the issuance of a note payable in the same amount, and then disposed of the Property and used the proceeds to repay the note. ...

Headquarters will generally, in turn, refer the matter to the GAAR Committee for consideration. ...

Is a subsequent transaction to use the note (or other property, including cash, received as consideration for a share redemption), such as the above transfer of the note to Newco, a necessary trigger for GAAR to be so applied, i.e., could the receipt of a note with a high ACB in itself cause GAAR to apply? ...

6 October 2006 Roundtable, 2006-0197211C6 F- Transfert de police d'ass-vie entre sociétés-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) s. 15(1) could apply to the individual shareholder of Aco and Bco where Aco transfers an insurance policy at an undervalue to Bco CRA has indicated that where a corporation transfers an interest in a life insurance policy of which it is the owner to an individual who is its sole shareholder, there will be a s. 15(1) benefit equal to the excess of the fair market value of the interest in the life insurance policy over the consideration paid. ...