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Canco provided services for no consideration to LLC1. In concluding that because NRTrust thereby will have a resident contributor (Canco), so that NRTrust will be resident under s. 94(3), the Directorate stated: If Canco provided services to LLC1, other than exempt services defined in section 94(1), paragraph 94(2)(f) would apply to deem Canco to have transferred property to LLC1. ... It would seem reasonable to be of the view that services provided to LLC1 for no consideration would result in an increase in fair market value of the shares of LLC1. …[P]aragraph 94(2)(a) applies at the time the services are rendered for no consideration resulting in an increase in the fair market value of the shares of LLC1 at that time. ...

If the Trust has a non-resident beneficiary, such non-resident beneficiary would be deemed to receive a certain proportion of any non-share consideration (the Note) received by the Trust on the disposition of the Canco low paid-up capital shares, resulting in a dividend deemed to be received by the non-resident beneficiary. ... Under s. 212.1(6)(b)(ii), each non-resident beneficiary will be deemed to have received consideration other than the shares of the purchaser corporation, and that consideration received will, again, be equal to the proportion of their interest in the trust. ...

Confirming the first point, CRA indicated that if an estate freeze is subject to s. 74.4(2), the deemed interest benefit is computed based on the outstanding amount determined under s. 74.4(3), and the shares received on the refreeze constitute excluded consideration as defined in s. 74.4(1) – so that such consideration does not reduce the outstanding amount under 74.4(3). Confirming the second point, CRA agreed that the redemption of refrozen shares for cash consideration would reduce the outstanding amount, but only to the extent of the FMV of those shares. ...

23 January 2022 TEI Roundtable, 2021-0913421C6- CEWS- Foreign exchange as qualifying revenue-- summary under Qualifying Revenue Summary Under Tax Topics- Income Tax Act- Section 125.7- Subsection 125.7(1)- Qualifying Revenue annual balance sheet translation adjustments to FX-denominated balances are not included in qualifying revenue for CEWS purposes An eligible entity whose normal accounting practice is to convert the inflow of cash, receivables, and other consideration into Canadian currency from a foreign currency, also adjusts various FX-denominated balances on its balance sheet date to reflect their value in Canadian currency on that date. ... In responding “no” to the first question, CRA stated: [Q]ualifying revenue requires, among other things, an inflow of cash, receivables or other consideration. Where an entity re-evaluates or translates certain balance sheet accounts to reflect their value in Canadian currency at a certain time, no inflow of cash, receivables or other consideration has occurred. ...

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. ...

Regarding the allocation under the licence agreement of X% of the payments to copyright and the balance to trademarks, the Directorate stated: Whether a particular apportionment of the consideration paid is reflective of the actual payments described in the exemption under subparagraph 212(1)(d)(vi) depends namely on the legal nature of what is being provided under the mixed contract, the legal relationships between the parties and the facts of the particular situation including the commercial reality of the parties and the consideration paid in these circumstances. In determining if the apportionment provided under the License Agreement is prima facie reflective of the obligation of the parties under subsection 212(1), consideration could be given, namely, to whether the parties had divergent interests in respect of the apportionment. ...

"Transfer of Farm Property to Child")-- summary under Subsection 73(3) Summary Under Tax Topics- Income Tax Act- Section 73- Subsection 73(3) Where a transfer of farm property described in s. 73(3) occurs for no consideration, or for consideration less than the land's adjusted cost base, the transferring farmer cannot utilize any unused portion of the capital gains deduction. ...

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. ...

(February 1990 Access Letter, ¶1106)-- summary under Subparagraph 40(2)(g)(ii) Summary Under Tax Topics- Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(g)- Subparagraph 40(2)(g)(ii) Where a wife guaranteed for no consideration a bank loan to her husband's corporation in which she was not a shareholder, she was unable to claim a capital loss because the guarantee was given for no consideration and she was not a shareholder. ...

(Tax Window, No. 3, p. 6, ¶1268)-- summary under Proceeds of Disposition Summary Under Tax Topics- Income Tax Act- Section 54- Proceeds of Disposition RC's assessing policy that under a farm-out it is not possible to ascertain the value of the consideration flowing between the parties and, therefore, the consideration for the disposition should be treated as being nil, does not apply to "widespread farm-outs" in which the farmee incurs CEE or CDE in respect of one property in order to earn an interest in a non-contiguous property. ...