Search - consideration

Expense- Contract or Option Cancellation As a result of selling a business the taxpayer was no longer able to fulfill its obligations under a supply contract and negotiated a termination of the contract in consideration for the payment by it of a termination fee. ...

However, serious consideration would be given to the addition of discretionary beneficiaries given that there would be a resulting disposition of interests in the trust. ...

20 December 2002 Internal T.I. 2002-0147967- TAX IMPLICATIONS CONTRACT TERMINATION-- summary under Paragraph 6(3)(e) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3)- Paragraph 6(3)(e) Upon the termination by a REIT of a management advisory agreement, an individual who previously worked for the advisor became the CEO of the REIT and a portion of the amount paid by the REIT on the termination of the agreement was allocated to the individual as consideration for a non-compete covenant in his employment contract rather than as termination damages to the management advisor. ...

Treaty-- summary under Article 22 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 22 where Canco receives a guarantee (in respect of a loan made to Canco by a third party or Canco's indirect Canadian parent) for no consideration from a US sister company, the resulting interest payment imputed to be made by Canco under ss. 247(2) and 214(15)(a) will be exempted under Art. ...

(May 1990 Access Letter, ¶1216)-- summary under Subsection 55(2) Summary Under Tax Topics- Income Tax Act- Section 55- Subsection 55(2) One corporation ("S1") transfers a capital property under s. 85(1) to a sister corporation ("S2") in consideration for redeemable preference shares which are then redeemed following the sale by S2 of the property to an arm's length purchaser. ...

In connection with a takeover bid by Holdco for a public corporation in Country A, it uses the borrowed money to acquire (but not obtain a beneficial interest) in treasury shares of the taxpayer for the sole purpose of transferring such shares to the shareholders of Target as the consideration for acquiring their shares of the Target. ...

(Tax Window, no. 29, p. 22, ¶2431)-- summary under Regulation 1400 Summary Under Tax Topics- Income Tax Regulations- Regulation 1400 Where an insurance company accepts an annuity contract as partial consideration for the assumption for another party's obligation with respect to a structured settlement, it will be permitted to deduct a policy reserve under s. 20(7)(c) of the Act provided that its obligation under the Assumption Agreement (that it is permitted by the relevant authority to enter into) constitutes an insurance policy, and that the amount of the reserve in respect of the liability arising under the policy is reported in its annual report to the relevant authority and is equal to the present value of the liability. ...

5 July 1990 TI AC59710-- summary under Paragraph 12(1)(a) Summary Under Tax Topics- Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(a) Where a promissory note is given in consideration for services, the acceptance of the note would be considered to be an amount received under s. 12(1)(a) where the note has been accepted as absolute payment for the services, whereas if the no te has been accepted as conditional payment, s. 12(1)(a) will apply only when actual payments are made on the note assuming the related services have not yet been performed at that time. ...

16 March 2012 External T.I. 2011-0423191E5 F- Disposition d'une participation dans une SP-- summary under Subparagraph (b)(i) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition- Paragraph (b)- Subparagraph (b)(i) disposition of partnership interest even though no proceeds received Before confirming that there could be a disposition when there has been a distribution of all the partnership property and the fair market value of the property distributed to a partner is less than the adjusted cost base of its interest, CRA stated: Although there is usually a corresponding acquisition of the property by another person and consideration flowing to the person disposing of the property, Canada Revenue Agency considers that these characteristics need not always be present for the purposes of the definition of "proceeds of disposition" in section 54. ...

However, where the surviving spouse reaches a settlement with the executors and property is transferred to the surviving spouse in consideration for a release of his or her rights to make a claim under the Family Law Act for an equalization and net family property, the rollover is not available. ...