Search - consideration

Under subparagraph 40(2)(g)(ii), a taxpayer's capital loss on the disposition of a debt or other right to receive an amount is nil unless (a) the debt or right was acquired by the taxpayer for the purpose of gaining or producing income (other than exempt income) from a business or property, or (b) the debt or right was acquired by the taxpayer as consideration for the disposition of capital property to a person with whom the taxpayer was dealing at arm's length. ... (Where the debt in question is a loan bearing less than a reasonable rate of interest, refer to IT-239R2 "Deductibility of Capital Losses from Guaranteeing Loans for Inadequate Consideration and from Loaning Funds at less than a Reasonable Rate of Interest in Non-arm's Length Circumstances".) 3. ... The debt was not acquired by the taxpayer for the purpose of gaining or producing income or as consideration for the disposition of capital property to an arm's length person, so that subparagraph 40(2)(g)(ii) prevents a claim in respect of a $1,000 capital loss. ...

Budget 2016 changes the definition of “specified housing supply” such that it now refers only to a sale of grandparented housing to a person where the total consideration for the sale, including consideration for any other taxable supply made to the person of an interest in the grandparented housing, is $450,000 or more. ... GST/HST on charitable donations The GST/HST is generally imposed on the value of the consideration for a taxable supply of property or a service made in Canada. ... The amendment applies to deem the value of the consideration for the supply of the T-shirt to be its fair market value, $20. ...

The issue of flow-through shares in the resource industry sector, the issue of shares as consideration for shares or other property, or the issue of shares on an amalgamation are some of the circumstances that can lead to a difference between the stated capital for corporate purposes and paid-up capital for income tax purposes. ... In regard to the issuance of shares, the stated capital account reflects (a) the par value of shares issued with a par value, (b) the amount ascribed by the directors for shares issued without par value or, in some jurisdictions, the fair market value of the consideration received for shares issued without par value, (c) a reduction for discounts granted (where permitted) for par value shares, and (d) a reduction for unpaid amounts (where permitted) for any issue. ... In general terms, where a corporation has migrated to Canada or has issued (a) flow-through shares, (b) shares as consideration for shares or other property (see the current version of IT-291, IT-450 and IT-489), (c) shares as a result of an amalgamation (see the current version of IT-474), or (d) shares for tax-credit purposes, e.g., shares issued in connection with the Scientific Research and Experimental Development Tax Credit, the potential exists that the paid-up capital for income tax purposes is less than the stated capital reported on the financial statements. ¶ 8. ...

The remainder of this bulletin is in two parts; 1) Part XIII Tax Considerations and 2) Part I Tax Considerations (payments considered business profits). ... PART XIII TAX CONSIDERATIONS 4. Refer to Information Circular 76-12R4 for applicable non-resident tax rates on amounts paid or credited to residents in treaty countries containing a specific article on management or administration fees or charges. ... In making such a determination consideration should primarily be given to the quantum or amount of the exclusion sought in relation to the service performed and the benefit derived by the payer. ...

The issue of flow-through shares in the resource industry sector, the issue of shares as consideration for shares or other property, or the issue of shares on an amalgamation are some of the circumstances that can lead to a difference between the stated capital for corporate purposes and paid-up capital for income tax purposes. ... In regard to the issuance of shares, the stated capital account reflects (a) the par value of shares issued with a par value, (b) the amount ascribed by the directors for shares issued without par value or, in some jurisdictions, the fair market value of the consideration received for shares issued without par value, (c) a reduction for discounts granted (where permitted) for par value shares, and (d) a reduction for unpaid amounts (where permitted) for any issue. ... In general terms, where a corporation has migrated to Canada or has issued (a) flow-through shares, (b) shares as consideration for shares or other property (see the current version of IT-291, IT-450 and IT-489), (c) shares as a result of an amalgamation (see the current version of IT-474), or (d) shares for tax-credit purposes, e.g., shares issued in connection with the Scientific Research and Experimental Development Tax Credit, the potential exists that the paid-up capital for income tax purposes is less than the stated capital reported on the financial statements. ¶ 8. ...

The CRA's review of late-filing penalties for information returns will take into consideration any unintended impacts brought to light during the initial year so as to improve fairness in future years. ...

Paragraph 1 of the bulletin is revised to take into consideration the repeal of section 88.1 and the enactment of subsections 128.1(4) and 250(5.1) under S.C. 1994, c.21 (formerly Bill C-27) generally applicable after 1992. ... Paragraph 5(viii.1) is added to the bulletin to take into consideration the enactment of paragraph 219(1)(f.1) under S.C. 1994, c.7 applicable to interest and penalties paid in the 1988 and subsequent taxation years. ... Paragraph 16 of the bulletin is revised to take into consideration the amendment made to subsection 808(3) of the Regulations by P.C. 1993-1548, SOR 93-395 applicable to taxation years ending after August 11, 1993. ...

In the case of beneficiaries of a personal trust, there is no reduction of the adjusted cost bases of their capital interests unless they were acquired for consideration. A personal trust, defined in subsection 248(1), is either a testamentary trust or an inter vivos trust in which no beneficial interest was acquired for consideration payable to the trust or to a person who has made a contribution to the trust. ... For the purposes of the definition of a personal trust, love and affection will not be regarded as consideration. ...

In the case of beneficiaries of a personal trust, there is no reduction of the adjusted cost bases of their capital interests unless they were acquired for consideration. A personal trust, defined in subsection 248(1), is either a testamentary trust or an inter vivos trust in which no beneficial interest was acquired for consideration payable to the trust or to a person who has made a contribution to the trust. ... For the purposes of the definition of a personal trust, love and affection will not be regarded as consideration. ...

Paragraph 1 of the bulletin is revised to take into consideration the repeal of section 88.1 and the enactment of subsections 128.1(4) and 250(5.1) under S.C. 1994, c.21 (formerly Bill C-27) generally applicable after 1992. ... Paragraph 5(viii.1) is added to the bulletin to take into consideration the enactment of paragraph 219(1)(f.1) under S.C. 1994, c.7 applicable to interest and penalties paid in the 1988 and subsequent taxation years. ... Paragraph 16 of the bulletin is revised to take into consideration the amendment made to subsection 808(3) of the Regulations by P.C. 1993-1548, SOR 93-395 applicable to taxation years ending after August 11, 1993. ...