Search - consideration

An individual may obtain a deduction under paragraph 60(l) in respect of all or part of amounts for the year they are included in the individual's income under subsection 146(8) to the extent they are paid (or in the case of a commutation payment received by a spouse as successor annuitant, to the extent it is directly transferred by the issuer of the RRSP) in the year or within 60 days after the end of the year: (c) as a premium under an RRSP under which the beneficiary is the annuitant; (d) to acquire a life annuity for the beneficiary or for the lives jointly of the beneficiary and the beneficiary's spouse, either with a guaranteed period that is not greater than 90 years minus the beneficiary's age or that of the beneficiary's spouse, at the time of its acquisition, or without a guaranteed period; (e) to acquire an annuity for the beneficiary for a term of years equal to 90 minus the beneficiary's age or, alternatively, 90 minus the age of the beneficiary's spouse, at the time of its acquisition; (f) to acquire an annuity under which a beneficiary child or grandchild (whether resident or non-resident), or a trust under which the child or grandchild is the sole person beneficially interested in all amounts payable under the annuity, is the annuitant for a term of years not exceeding 18 minus the age of the beneficiary at the time of its acquisition; or (g) to a carrier as consideration for a registered retirement income fund under which the beneficiary is the annuitant. ... Also, ¶ 27 indicates that annuity payments can be adjusted to (for example) take into consideration increases in the cost of living, and comments that a rollover to a registered retirement income fund is available. ¶ 28 is former ¶ 30 expanded to explain that a rollover is available when a subsection 146(8.91) election has been made. ¶ 29 is a general update of former ¶s 31 through 34 to reflect changes in the law discussed elsewhere in the bulletin and to reflect the change from a deduction to a non-refundable tax credit. ...

Question 3 In applying clause XXIX A(2)(e)(i) of the treaty, will the CRA take into consideration both the direct and indirect relevant shareholdings in a tested company to determine whether 50% or more of the relevant shares of the tested company are not owned, directly or indirectly, by persons other than qualifying persons? ... In this respect, subsection 248(26) of the Act clarifies that an amount that a debtor becomes liable to pay (other than interest) as consideration for any property acquired by, or services rendered to, the debtor shall, for the purposes of applying the provisions of the Act, be considered to be an obligation issued by the debtor equal to the amount of the liability. ...

As described in subsection 7308(2), a retirement income fund is a qualifying retirement income fund at a particular time if the fund was entered into before 1993 and the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time. In addition, a fund is a qualifying retirement income fund if the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time, other than property from a retirement income fund that was a qualifying retirement income fund immediately before the transfer of property. ...

Question 3 In applying clause XXIX A(2)(e)(i) of the treaty, will the CRA take into consideration both the direct and indirect relevant shareholdings in a tested company to determine whether 50% or more of the relevant shares of the tested company are not owned, directly or indirectly, by persons other than qualifying persons? ... In this respect, subsection 248(26) of the Act clarifies that an amount that a debtor becomes liable to pay (other than interest) as consideration for any property acquired by, or services rendered to, the debtor shall, for the purposes of applying the provisions of the Act, be considered to be an obligation issued by the debtor equal to the amount of the liability. ...

As described in subsection 7308(2), a retirement income fund is a qualifying retirement income fund at a particular time if the fund was entered into before 1993 and the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time. In addition, a fund is a qualifying retirement income fund if the carrier has not accepted any property as consideration under the fund after 1992 and at or before the particular time, other than property from a retirement income fund that was a qualifying retirement income fund immediately before the transfer of property. ...

An individual may obtain a deduction under paragraph 60(l) in respect of all or part of amounts for the year they are included in the individual's income under subsection 146(8) to the extent they are paid (or in the case of a commutation payment received by a spouse as successor annuitant, to the extent it is directly transferred by the issuer of the RRSP) in the year or within 60 days after the end of the year: (c) as a premium under an RRSP under which the beneficiary is the annuitant; (d) to acquire a life annuity for the beneficiary or for the lives jointly of the beneficiary and the beneficiary's spouse, either with a guaranteed period that is not greater than 90 years minus the beneficiary's age or that of the beneficiary's spouse, at the time of its acquisition, or without a guaranteed period; (e) to acquire an annuity for the beneficiary for a term of years equal to 90 minus the beneficiary's age or, alternatively, 90 minus the age of the beneficiary's spouse, at the time of its acquisition; (f) to acquire an annuity under which a beneficiary child or grandchild (whether resident or non-resident), or a trust under which the child or grandchild is the sole person beneficially interested in all amounts payable under the annuity, is the annuitant for a term of years not exceeding 18 minus the age of the beneficiary at the time of its acquisition; or (g) to a carrier as consideration for a registered retirement income fund under which the beneficiary is the annuitant. ... Also, ¶ 27 indicates that annuity payments can be adjusted to (for example) take into consideration increases in the cost of living, and comments that a rollover to a registered retirement income fund is available. ¶ 28 is former ¶ 30 expanded to explain that a rollover is available when a subsection 146(8.91) election has been made. ¶ 29 is a general update of former ¶s 31 through 34 to reflect changes in the law discussed elsewhere in the bulletin and to reflect the change from a deduction to a non-refundable tax credit. ...

In this regard, particular consideration should be given to the following factors: the nature of the duties to be performed by the employee (certain types of work are, by their nature, short term engagements, such as repair work or trades which are involved only during a certain phase of a project); the overall time estimated for a project, or a particular phase of a project, on which the employee is engaged to perform duties; and the agreed period of time for which the employee was engaged according to the employment contract or other terms of the engagement. ...

A portion of the expenditure may qualify as a gift when the value of advertising and other considerations received is less than 80% of the fair market value (FMV) of the gift. ...

However, if the beneficiary's capital interest is an interest in a "personal trust" (as defined in subsection 248(1) of the Act) and the interest was acquired by the beneficiary for no consideration, there is no such ACB reduction under paragraph 53(2)(h). ...

By virtue of that provision, the total consideration to the taxpayer for the government right (which will enter into the calculation of an EC amount) is reduced by the greater of the following two amounts: the taxpayer's pre-1972 cost of acquiring the government right (or of acquiring the taxpayer's original right in respect of the government right), to the extent that such cost has not previously been deducted in calculating the taxpayer's income; and the fair market value, as at December 31, 1971, of the taxpayer's specified right in respect of the government right. from a person with whom the successor was not dealing at arm's length; or pursuant to an agreement with a person with whom the successor was not dealing at arm's length, if under the terms of the agreement the non-arm's length person allowed the right to expire so that the successor could acquire a substantially similar right from the authority that had issued the right to the non-arm's length person; subsection 21(2.1) of the ITAR can make the favourable rule in subsection 21(1) available to the successor. ...