Search - consideration

In finding that s. 232(2) did not apply to the supply of crude made by Company A to Company B, CRA stated: The reduction in consideration must relate to the original supply and may be made for any reason but must not depend on any action undertaken by the recipient or any supply made by the recipient. Furthermore, a reduction in consideration is not considered to have occurred if the goods are sold back to the original supplier. To be considered a reduction of consideration, it must be evident that the goods are being returned to the supplier rather than being sold to the supplier. ...

2003 Ruling 2003-000498C- Qualifying disposition from trust to Sub-- summary under Paragraph 107.4(2)(a) Summary Under Tax Topics- Income Tax Act- 101-110- Section 107.4- Subsection 107.4(2)- Paragraph 107.4(2)(a) s. 107.4(2)(a) applies where drop-down by MFT of corporate sub to sub trust for no consideration Current structure The Fund, which is an exchange-listed mutual fund trust, holds shares and debt (the Corporation Shares and the Corporation Notes) of an operating subsidiary, and holds a general partnership interest through a sub trust (the trust). Proposed transactions The Fund will transfer the Corporation Shares and the Corporation Notes to the Trust for no consideration. ... There will be no transfer of property to the Trust as consideration for the acquisition of a capital interest in the Trust where the particular property can reasonably be considered to have been received by the Trust in order to fund a distribution. ...

The consideration paid by the shareholders would be a proportionate fraction of the property’s nominal appraised value. CRA gave what, in form, was a ruling, that there would be no s. 15(1) (or 246(1)) benefit to the extent that the FMV of the share of the real property so transferred to each shareholder was equal to or less than the FMV of the consideration paid therefor and, on a similar assumption that the aggregate consideration and the property’s FMV did not exceed its ACB, the corporation would not realize a gain. ...

NewAco will redeem the preferred shares held in it by PB1co, and by Dco, in each case in consideration for a note. PB1co will redeem the preferred shares held in it by NewCco in consideration for a note. ... Dco will redeem the preferred shares held in it by NewCco in consideration for the Dco Note. ...

2003 Ruling 2003-000498C- Qualifying disposition from trust to Sub-- summary under Paragraph 107.4(3)(m) Summary Under Tax Topics- Income Tax Act- 101-110- Section 107.4- Subsection 107.4(3)- Paragraph 107.4(3)(m) no increase to ACB of subtrust units where dropdown to the subtrust for no consideration On a transfer by a mutual fund trust (the "Fund") of shares and notes of a subsidiary to a subsidiary trust (the "Trust") of the Fund for no consideration, no amount would be added pursuant to s. 107.4(3) by virtue of such disposition to the cost of the Trust units owned by the Fund. ...

Proposed transactions Trust will transfer its Aco shares on a s. 85(1) rollover basis to Newco (newly-incorporated by it) in consideration for non-voting redeemable retractable Class B shares of Newco. Similarly, the estate of Mother will transfer its Aco shares on a s. 85(1) rollover basis to Newco in consideration for non-voting redeemable retractable Class C shares of Newco. For both of the above transfers, s. 84.1(1) will reduce the PUC of those Newco shares which were issued in consideration for Class B shares of Aco by the amount by the excess of the increase in their PUC over the ACB of such transferred shares computed pursuant to s. 84.1(2)(a.1)(ii). ...

.: 1) Foreign Services transfers the DC preferred shares directly to TC as consideration for the shares of Foreign Spinco issued in step 3; 2) TC issues common shares to Foreign Spinco as consideration for those DC shares; and 3) As consideration for the TC shares, Foreign Spinco issues shares to Foreign Services. ...

2007 Ruling 2007-0245281R3- windup of income trust on sale of assets:3rd party-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) assumed debt traceable to capital distribution A corporation ("Bidco") assumes the third-party debt of an income fund (the "Fund") whose units it has acquired as consideration for the subscription for additional units in the Fund, and then had the Fund's assets (principally, limited partnership units of the subsidiary partnership) transferred to Bidco in consideration for a note of Bidco, with the Fund then distributing the note to Bidco in satisfaction of a capital distribution and capital gains distribution declared by the trustees of the Fund. ...

5 January 2012 Ruling Case No. 98811 [broker charge for securing health plan employer]-- summary under Financial Service Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Financial Service broker charge for securing health plan employer A commission charged by a broker to the administrator of a private health services plan in consideration for bringing the administrator and employer together and designing the plan was consideration for a taxable supply. ...

7 September 2000 Ruling 11830-1B (Case 26962)-- summary under Section 138 Summary Under Tax Topics- Excise Tax Act- Section 138 A supply of booth space together with chairs and tables to exhibitors by a registered charity hosting a conference relating to its objects was deemed in light of s. 138 to be a single supply of real estate which was exempt, given "that the provision of the tables and chairs does not materially affect the amount of consideration charged." CRA stated: we consider a supply to be incidental to a particular supply if the supplier's primary objective is to provide the particular supply, and if the consideration would be the same or only marginally different if only the particular supply were made. ...