Search - consideration

In those circumstances, we are of the view that the determination of the existence of particular consideration for a property and the FMV of that consideration should be made in light of the particular facts of the situation under analysis. ...

CRA stated (TaxInterpretations translation): the shares in the capital of Newco issued to X and Y are deemed to have been property, immediately before their issuance, of a person who was not related to X and Y unless they were issued in consideration for other shares. Since the shares in the capital of Newco were issued in consideration for shares in the capital of ABC, we are of the view that the [24-month] holding test is satisfied. ...

In finding that dividends on the Class A shares paid to the Trust could not be attributed to Mother under s. 75(2), CRA stated: Since a corporation does not own its own shares prior to their issuance, it follows that the issuance of shares by a corporation to a trust for consideration equal to their FMV generally does not constitute a transfer of property to which subsection 75(2) could apply. According to … Kieboom …, subsection 75(2) could, however, apply where the shares are not subscribed for consideration equal to their fair market value. ...

11 June 2015 External T.I. 2014-0522641E5 F- Usufruct-- summary under Qualified Farm or Fishing Property Summary Under Tax Topics- Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1)- Qualified Farm or Fishing Property termination of usufruct between father and son on farmland, which was a deemed trust, did not entail disposition of qualified farm property A father, who has carried on a farming business for a number of years, grants the bare ownership of the property for consideration to his son while retaining rights as the usufructuary. ... After noting that under s. 248(3)(a) "the property which is transferred to the son is an interest in a deemed trust," and indicating that "as the bare owner did not transfer, assign or dispose of any property to the deemed trust,…paragraph 108(7)(b) cannot apply to deem the beneficial interest of the bare owner to have been acquired for nil consideration," so that the deemed trust was not a personal trust, CRA stated: A right of a usfructuary, which is an interest in a trust…is not a QFP. … At the termination of the usufruct and, thus, of the deemed trust, there is a disposition of property held by the deemed trust in favour of the bare owner. ...

X 100 Class A shares for nominal consideration and also issues 100 discretionary dividend shares to Holdco. ... X of the new Class A shares of the capital stock of Opco was part of a series of transactions or events under which Holdco acquired discretionary dividend shares of capital stock of OPCO for consideration well below their FMV at the time of acquisition. ...

30 May 2013 External T.I. 2013-0487301E5- 3P Project-- summary under Class 14 Summary Under Tax Topics- Income Tax Regulations- Schedules- Schedule II- Class 14 failure to state consideration for concession The query noted that para. 12 of 2006-0218781R3 stated: In return for the grant of the Concession, the Partnership will agree to construct the Facility and operate it during the Operating Period at its own expenses except for the amount of $XX that the Minister will pay to the Partnership during the Construction Period. Would CRA's treatment of a particular concession or licence as a Class 14 asset 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? ...

Consideration to USCo includes a fixed monthly fee, a percentage of gross receipts, and a "Procurement License Fee" ("PLF"). ... CRA indicated that the PLF is not consideration for a set of "procurement rights" distinct from the other franchise rights. ...

A has actually disposed of them-- was part of the series of transactions or events in which Opco acquired the Class "AA" shares of its capital stock for consideration less than their fair market value. In addition, paragraph 110.6(7)(b) will only apply if it is determined that Opco acquired Class "AA" shares of its capital stock for consideration that is "significantly less" than the FMV of those shares at the time of acquisition. ...

BCo will transfer its business on a rollover basis to a newly formed subsidiary limited partnership (New LP) in consideration for the assumption of liabilities and the issuance of Class A units; and ACo will fund New LP from time to time in consideration for the issuance of Class B units (which are not described in the letter to have much difference from the Class A units – including equal per-unit allocations of income or loss- except as described below) at a subscription price equal to a valuation of the NAV per Class A unit and Class B unit. ...

" The Estate of A will transfer its Class A common shares of Investmentco to Newco in consideration for a demand non-interest bearing note ("Newco Note") and in consideration for Class B non-voting retractable preferred shares of Newco and with a s. 85(1) election made. ...