Search - consideration

" Black's Law Dictionary similarly defines "rent" to be "consideration paid, usu. periodically, for the use or occupancy of property (esp. real property)." The Residential Tenancies Act, 2006 (Ontario) states that "rent" includes, " the amount of any consideration paid or given or required to be paid or given by or on behalf of a tenant to a landlord or the landlord's agent for the right to occupy a rental unit and for any services and facilities and any privilege, accommodation or thing that the landlord provides for the tenant in respect of the occupancy of the rental unit, whether or not a separate charge is made for services and facilities or for the privilege, accommodation or thing..." Based on the ordinary meaning of this term, it is reasonable to conclude that a person who provides monetary consideration to another person for the use of, or right to occupy, a rental unit, residential property, or similar premises, for a period of time would be paying rent. ...

Accordingly, when determining a reduced withholding amount under subsection 153(1.1), no consideration can be given to the reduction of the pensioner taxpayer’s Part I income that results from the joint election under section 60.03 of the Act or the impact of the deeming provision under subsection 153(2) of the Act. ... Since subsection 153(1.3) of the Act applies such that, no consideration can be given to the reduction of the pensioner taxpayer’s Part I income that results from the joint election under section 60.03 of the Act, it would follow that a similar outcome would result for purposes of withholding under Part I.2 of the Act. Accordingly, no consideration can be given to the joint election under section 60.03 of the Act for purposes of determining a reduced withholding amount in respect of Part I.2 tax. ...

A “reinsurance premium” could include any amounts paid to the transferee as consideration for the assumed obligations in respect of the transferred insurance business. 2. ... We note, however, that the term would not be limited to such assets and that it may apply more broadly to any amounts paid or payable to the transferee as consideration for the assumed obligations in respect of the transferred insurance business. ... Further, paragraph 138(11.5)(m) of the Act refers to an amount that is paid or payable by the transferee to the transferor, whereas the definition under subsection 1408(1) of the Regulations generally refers to the excess of the premium paid by the policyholder for the policy over the consideration payable by the insurer in respect of the reinsurance or assumption of the risk. ...

Step B: A absolutely assigns the policy to B for no consideration. A would not incur any additional policy gain because the proceeds of disposition would be deemed to be zero under subsection 148(7). ... CRA Response B: Where A assigns the policy to B for no consideration such that subsection 148(7) of the Act applies to the transfer, the legislation provides that A will be considered to have received proceeds of disposition on the transfer in an amount equal to the "value" of A's interest in the policy at the time of the transfer. ... B absolutely assigns the policy to A for no consideration. After the policy loan, the amount that would be payable on surrender of the policy would be zero. ...

The consideration received by the transferor consists solely of shares of the capital stock of the transferee corporation. Would the CRA invalidate the price adjustment clause and apply subsection 15(1) of the ITA, if the persons believe that they do not have to file an amended election and pay the penalty provided in subsection 85(8) of the ITA, because the "agreed amounts" and the "description of property disposed of" remained unchanged, and the parties made the corrections required by the CRA concerning the amount of the fair market value of the transferred property and the consideration received by the transferor? ... An acceptable price adjustment clause has to adjust the price of the property transferred and the consideration received, not the quantity of the property transferred. ...

The definition of personal trust in subsection 248(1) of the Act provides, in the case of an inter vivos trust, that no beneficial interest in the trust may be acquired for consideration payable directly or indirectly to the trust or any person who has made a contribution to the trust. It further provides that where a beneficial interest in the trust is acquired by transfer of property to the trust by one person, such a beneficial interest in the trust shall be deemed to be acquired by such person for no consideration. Where two or more persons have acquired beneficial interests by virtue of transferring property to the trust those persons must be related in order that their interests be deemed to have been acquired for no consideration. ...

You have discussed an alternative interpretation of "B" in the above formula as being the elected amount less any non-share consideration. ... The Department's interpretation of the formula provided in subsection 85(2.1) of the Act is as follows: A =the stated capital of the new shares less the paid-up capital of the old shares B =the agreed amount less the fair market value of non-share consideration C =the stated capital of the preferred shares issued. ... We have referred this problem to the Department of Finance for their consideration. ...

As regards capital losses from guaranteeing corporate loans for inadequate consideration, the Department's position, as stated in paragraph 4 of Interpretation Bulletin IT-239R2, is that a capital loss arising where a taxpayer is required to honour a guarantee given for inadequate consideration or for no consideration is nil by virtue of subparagraph 40(2)(g)(ii) of the Act. ...

As we understand the basic facts of your situation, A corporation with a number of classes of shares was incorporated in XXXXXXXXXX by the issue, for cash consideration of $XXXXXXXXXX, of XXXXXXXXXX class A shares which are voting, participating, and convertible at the option of the shareholder into class D preferred shares. Class D shares are non-voting, non-participating, non-cumulative as to dividends of 1% per month on the amount paid-in in preference to the other classes of shares, and retractable at the fair market value of consideration received on issue. ... Subsection 110.6(9)(c) of the Act defines the "average annual rate of return" on a share to be the rate that a knowledgeable and prudent investor would expect to receive if "the proceeds to be received by the investor on the disposition of the share is the same amount the corporation received as consideration on the issue of the share". ...

However it is our opinion that financial hardship can only be determined on a case by case basis and only after giving consideration to all of the circumstances of any particular case. ... Consequently, while CPP contributions that are required to be paid during the leave period are to be deducted and remitted by the trustee as by any other employer, CPP contributions paid in the year prior to the leave period must be taken into consideration by the trustee. ... However, since CPP contributions made during the year prior to the leave period are to be taken into consideration by the trustee, the amount of contributory earnings reported by the trustee may not coincide with the earnings reported in box "C" for that particular year. ...