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Canada Customs and Revenue Agency Response As there is insufficient facts to deal with the impact of the reciprocal guarantees, our response below first deals with the situation where Canco guarantees the loans of USco for no consideration and then the situation where USco guarantees the loans of Canco for no consideration. ...

Although the shareholders may have acquired a right to use the Property along with their shares (or as a share right), unless separate fair market value consideration was paid for the use of the Property, either at the time of purchase or subsequently, we are of the view that there may be a shareholder benefit if the shareholders are only paying a cost amount for the use of the Property. ... The calculation of the amount or value of the benefit is usually based on the fair market rent for the property minus any consideration paid to the corporation by the shareholder for the use of the property. ...

The term "immovable property" for the purposes of the above definition would require consideration of its ordinary meaning. The determination as to whether a particular property is immovable property remains a question of fact which would require consideration of the degree or permanence of the annexation to the land (i.e., whether it has become a fixture or structure- refer to Interpretation Bulletin IT-79R3, "Capital Cost Allowance – Buildings or Other Structures"). ...

21 November 2013 External T.I. 2013-0497641E5- Flow-through shares and stock options CRA Tags 66(15) "flow-through share" 6202 6202.1 Principal Issues: In the hypothetical situation provided, 1. what is the employee's taxable benefit and 2. what is the amount of consideration for FTS purposes? ... You also wish to know whether the consideration paid for the purposes of a FTS agreement would be the fair market value of the shares acquired, or the amount paid by the employee (exercise price) to the employer to acquire the shares. ...

Pursuant to paragraph (j) of that definition, an excluded right or interest includes an interest in a personal trust resident in Canada that was never acquired for consideration and did not arise as a result of a transfer of property to the trust by that individual that would be a qualifying disposition (if subsection 107.4(1) were read without paragraphs (h) and (i)). Note that subsection 108(7) of the Act provides, inter alia, that for purposes of the definitions of "excluded right or interest" and "personal trust" (as defined in subsection 248(1)), a person, or two or more related persons, can contribute to the trust and hold an interest in the trust, without failing the acquisition for consideration prohibition in those provisions. ...

30 May 2013 External T.I. 2013-0487301E5- 3P Project CRA Tags ITR Schedule II Principal Issues: Would the CRA treat a concession or licence as a Class 14 asset where the particular agreement does not specifically state that the entity will agree to incur the costs to construct and operate the facilities during the term of the agreement in consideration for the Province's grant of the concession or licence? ... " You want to know if our treatment of a particular concession or licence as a Class 14 asset, as was the case in the above-noted ITR, would be the same if the particular concession agreement did not specifically state that the particular entity will agree to incur the costs to construct and operate the facilities during the term of the agreement in consideration for the grant of a concession. ...

The Income Tax Act generally defines a superannuation or pension plan to be a plan where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and contributions are used to provide an annuity or other periodical payment on or after the employee's retirement in consideration for his or her employment services. ...

Our Comments In general, subsection 50(1) provides a mechanism for a taxpayer to recognize a capital loss on a debt owing to the taxpayer (other than a debt owing to the taxpayer in respect of the disposition of personal-use property) where that debt is established by the taxpayer to have become a bad debt in the year, or on a share (other than a share received by the taxpayer as consideration in respect of the disposition of personal-use property) of a corporation owned by the taxpayer where the corporation has become bankrupt or insolvent during the year. ... As noted in paragraph 3 of Interpretation Bulletin IT-460, Dispositions – Absence of Consideration, where a partnership is dissolved and the taxpayer is not entitled to and does not receive any share of the partnership's net assets (if any), the dissolution would generally result in a disposition of the partnership interest and an amount of zero may be used as proceeds of disposition for purposes of computing a loss from the disposition. ...

As stated in paragraph 4 of Interpretation Bulletin IT-334R2, Miscellaneous Receipts, amounts received as gifts (i.e. voluntary transfers of real or personal property without consideration) are not subject to tax in the hands of the recipients. ... The following factors listed in paragraph 3 of IT-334R2 are indicative of whether an amount is a windfall: (a) the taxpayer had no enforceable claim to the payment, (b) the taxpayer made no organized effort to receive the payment, (c) the taxpayer neither sought after nor solicited the payment, (d) the taxpayer had no customary or specific expectation to receive the payment, (e) the taxpayer had no reason to expect the payment would recur, (f) the payment was from a source that is not a customary source of income for the taxpayer, (g) the payment was not in consideration for or in recognition of property, services or anything else provided or to be provided by the taxpayer, and (h) the payment was not earned by the taxpayer as a result of any activity or pursuit of gain carried on by the taxpayer and was not earned in any other manner. ...

Le temps de travail accompli et l'expertise d'un associé par rapport à ceux des autres associés sont les facteurs à prendre en considération aux fins du paragraphe 103(1.1). ... Selon le paragraphe 3 du bulletin d'interprétation IT-231R2- Sociétés – Associés ayant un lien de dépendance, pour déterminer la valeur proportionnelle du travail accompli par un associé dans les activités de la société, l'ARC prend à la fois en considération le temps consacré au travail et l'expertise apportée. ...