Search - consideration

Paragraph 3 of IT-339R2 describes the following basic elements of an insurance plan: "(a) an undertaking by one person, (b) to indemnify another person, (c) for an agreed consideration, (d) from a loss or liability in respect of an event, (e) the happening of which is uncertain. ... Question 4 Whether the annual dollar limit under paragraph 20.01(2)(c) of the Act for a sole proprietor to deduct a premium, contribution, or other consideration paid or payable under a PHSP, from business income, remains unchanged? ...

In consideration for this information, Bco receives a portion of the commission earned by Aco. ... The term “royalties” is defined in paragraph 4 of Article XII of the Treaty and includes, inter alia, payments of any kind received as a consideration for the use of, or the right to use, information concerning industrial, commercial or scientific experience. ...

OUR COMMENTS Section 35 applies where shares of a corporation are received in a taxation year by an individual who is a prospector as consideration for the disposition by the individual to the corporation of a mining property or interest therein that was acquired by the individual as a result of the individual's efforts as a prospector. ... X from the mining corporation under the Agreement represented consideration for the disposition by Mr. ...

The terms of the settlement provide, among other consideration, for the periodic payments to the Plaintiff of lifetime monthly payments starting at $XXXXXXXXXX, indexed at XXXXXXXXXX% per annum, compounded, commencing on XXXXXXXXXX and continuing to be made on the XXXXXXXXXX day of each and every month thereafter guaranteed for XXXXXXXXXX years through to XXXXXXXXXX, and payable thereafter for so long as the Plaintiff is alive, the (“Structure Payments”). 8. ... In consideration of XXXXXXXXXX making the Structure Payments (XXXXXXXXXX), the Plaintiff, her Litigation Representative, and the Derivative Plaintiff have agreed to settle their claims against the Releasees. ...

However, as supported by court decisions, the CRA’s general position is that a plan will generally be considered a superannuation or pension fund or 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 the contributions are used to provide an annuity or other periodic payments on or after the employee's retirement in consideration for his or her employment services. ...

Section 84.1 achieves its purpose by: reducing the paid-up capital of the shares of the purchaser corporation received by the individual in consideration for shares of the subject corporation (this reduction reduces the ability to return paid-up capital of the purchaser corporation, which is basically the legal stated capital of the shares adjusted for tax purposes, as the excess would be taxed as a dividend), and deeming the individual shareholder to have received a dividend where the purchaser corporation gives non-share consideration for the shares of the subject corporation (for example, cash or a promissory note). ...

Therefore, in the CRA’s view, the plan must be: (a) an undertaking by one person, (b) to indemnify another person, (c) for an agreed consideration, (d) from a loss or liability in respect of an event, (e) the happening of which is uncertain. ... More recently the CRA has expressed the view in Technical Interpretation 2014-0521301E5 (dated June 25, 2014) that: …. a cost-plus plan under which the administrator agrees to reimburse the sole employee-shareholder, his or her spouse, and members of his or her household for actual medical and hospital expenses and receives, as consideration, an amount equal to the amount reimbursed plus an administrative fee, does not qualify as a PHSP since it does not contain the necessary elements of insurance. ...

The terms of the settlement provide, among other consideration, for the payment to the Plaintiff XXXXXXXXXX, without indexation, commencing on XXXXXXXXXX (XXXXXXXXXX are guaranteed to be made through XXXXXXXXXX, regardless of whether the Plaintiff is alive), plus a lump sum payment of $XXXXXXXXXX on XXXXXXXXXX (which lump sum payment is guaranteed to be made XXXXXXXXXX, regardless of whether the Plaintiff is alive). 6. ... In consideration of the Insurer making the Structure Payments, the Plaintiffs settle their claims against the Defendants. ...

Additionally, consideration is being given to a number of risk factors, such as: Audit History; Industry Sector Issues; Unusual and/or complex transactions; Corporate Structure; Major acquisitions and disposals; International transactions; Corporate Governance; Participation in aggressive tax planning; and Openness and transparency. ... We are also giving consideration to creating an ALBC Website to provide taxpayers with information about the approach. ...

7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 1, 2016-0651771C6 F- Critical Illness Insurance Unedited CRA Tags 15(1) Principales Questions: Whether subsection 15(1) could apply to the transfer (without consideration) by a corporation of its critical illness insurance policy to its sole shareholder? ... Raisons: No consideration paid by the shareholder. Table ronde sur la fiscalité des stratégies financières et des instruments financiers du 7 octobre 2016- APFF Congrès 2016 Question 1 Transfert d’une police d’assurance maladies graves par une société par actions à un actionnaire Une société par actions exploitante (« Opco ») a souscrit, il y a plusieurs années, à une police d’assurance maladies graves à l’égard de son unique actionnaire, qui participe très activement aux opérations courantes de la société. ...