Search - consideration

Each of the common shareholders of Holdco would transfer all of his shares of Holdco to Newco, using the rollover provisions of subsection 85(1) of the Act, and would receive as consideration one common share of Newco for each common share of Holdco. 5. ... X's shares of Holdco, issuing a promissory note to him as consideration. ... Also, no consideration has been given to other provisions, such as subsections 55(2), 110.6(7), 110.6(8) or 112(3), of the Act, which may apply in a specific situation where dividends are paid or shares are sold. ...

X in 1989 in exchange for additional consideration consisting only of shares of Publico with a fair market value of $1,500. ... The cash paid for the option could, for the purposes of paragraph 85.1(2)(d) of the Act, be considered to be consideration received for the option and not for the shares of Opco. ... In our opinion, the cash received on the granting of the option would be consideration for the granting of the option which would be subject to the provisions of the Act for the year in which the option was granted, as described above. ...

The individual incorporates Newco, a taxable Canadian corporation, so that he owns 100% of its issued shares and causes Company A to dispose of all its active business assets to Newco utilizing the provisions of subsection 85(1) of the Act, for consideration less than the fair market value of the assets disposed. ... If the property transferred was owned by Company A when the individual acquired the shares of Company A, favourable rulings would be given only if the consideration referred to was equal to the fair market value of the property transferred at the time the individual acquired the shares of Company A. Similarly, if the adjusted cost base of the property to be transferred is based on a V-day valuation, then the V-day value of the property to be transferred would usually be the appropriate minimum amount of the consideration. ...

X in 1989 in exchange for additional consideration consisting only of shares of Publico with a fair market value of $1,500. ... The cash paid for the option could, for the purposes of paragraph 85.1(2)(d) of the Act, be considered to be consideration received for the option and not for the shares of Opco. ... In our opinion, the cash received on the granting of the option would be consideration for the granting of the option which would be subject to the provisions of the Act for the year in which the option was granted, as described above. ...

Consideration of requests of this nature involves an extensive and fully objective review of the facts of the particular situation and a careful evaluation of the merits of the request to ensure fair and uniform application of established criteria. ... I wish to assure you that he will receive the utmost consideration possible in the resolution of this case. ...

28 February 1980 Income Tax Severed Letter RCT 85-043 F Unedited CRA Tags 85.1 Dear XXX This is in reply to your letter dated February 28, 1980 in which you asked whether or not the comments in Interpretation Bulletin IT-115R concerning the receipt of cash or other consideration in lieu of fractional shares, also applies when such consideration is in lieu of fractional shares arising on a share for share exchange pursuant to section 85.1 of the Income Tax Act. ...

ConsIderation of requests of this nature involves an extensive and fully objective review of the facts of the particular situation and a careful evaluation of the merits of the request to ensure fair and uniform application of established criteria. ... I wish to assure you that he will receive the utmost consideration possible in the resolution of his case. ...

Consideration of requests of this nature involves an extensive and fully objective review of the facts of the particular situation and the evaluation of the merits of the request to ensure fair and uniform application of established criteria. ... I wish to assure you that you will receive the utmost consideration possible in the resolution of her case. ...

In answer to your first question, it is our opinion that the requirement in the preamble of subsection 85(1) of the Income Tax Act that the consideration for property transferred to a taxable Canadian corporation must include shares of the capital stock of the corporation would not be satisfied by a consideration that is a right to receive any such shares. ...

25 November 1982 Income Tax Severed Letter RCT 5-4520 F Unedited CRA Tags 85(1), 85(1)(e.2) Dear XXX: This is in reply to your letter of October 19, 1982 concerning the dollar value of consideration to be taken back by a taxpayer on a rollover of capital property to a related corporation pursuant to the provisions of subsection 85(1) of the Act. In order to avoid the application of paragraph 85(1)(e.2) of the Act to the above sale the fair market value of the consideration taken back by the taxpayer must be equal to the fair market value of the capital property purchased by the corporation. ...