Search - consideration

8 September 2009 External T.I. 2008-0299771E5 F- Gain on Disposition of Debt-- summary under Subsection 43(1) Summary Under Tax Topics- Income Tax Act- Section 43- Subsection 43(1) partial repayment of low-ACB debt generates a capital gain Over the years, A made advances (the "Debt") to Aco which it wholly owned, and then sold all the shares of A to an arm’s length purchaser, as well as the Debt for nominal consideration. ...

8 September 2009 External T.I. 2008-0299771E5 F- Gain on Disposition of Debt-- summary under Computation of Profit Summary Under Tax Topics- Income Tax Act- Section 9- Computation of Profit partial repayment of low-cost debt generates business income if held on income account Over the years, A made advances (the "Debt") to Aco which it wholly owned, and then sold all the shares of A to an arm’s length purchaser, as well as the Debt for nominal consideration. ...

31 May 2017 External T.I. 2016-0642621E5- Donation to private foundation-- summary under Subsection 69(4) Summary Under Tax Topics- Income Tax Act- Section 69- Subsection 69(4) implicit finding that s. 69(4) could apply to a gift CRA confirmed that the s. 38(a.1) rule prevails over s. 69(4), as well as s. 69(1)(b)(ii), so that where a corporation transfers shares of a public corporation for no consideration to its sole shareholder, which is a private foundation, s. 38(a.1) will deem there to be no gain to the corporation if the transfer qualifies as a gift. ...

9 May 2007 External T.I. 2006-0189931E5 F- Renonciation à une fiducie par un conjoint-- summary under Paragraph 69(1)(b) Summary Under Tax Topics- Income Tax Act- Section 69- Subsection 69(1)- Paragraph 69(1)(b) renunciation of interest in spousal trust not a disposition to the family beneficiaries What are the tax consequences of the renunciation by the beneficiary of a testamentary spousal trust of all entitlements under the trust (other than income that has accrued to date) without consideration and without having indicated who was entitled to benefit from the renunciation? ...

X transfers high-low preferred shares of Opco 1 to Opco 2 (both held by him and related persons) in consideration for a note, such that he is deemed by s. 84.1(1)(b) to receive a dividend. ...

11 July 2006 External T.I. 2005-0152031E5 F- Actions admissibles de petite entreprise-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation building used 75% in the corporation’s active business operations and 25% for rental use would qualify A couple will transfer a co-owned building – that is used 75% in the operation of an active business of a corporation owned by one of them and 25% for rental to third parties – to the corporation on a rollover basis in consideration for shares with a FMV equaling that of the building. ...

21 December 2006 External T.I. 2006-0170851E5 F- Option d'achat de biens immeubles-- summary under Subsection 49(1) Summary Under Tax Topics- Income Tax Act- Section 49- Subsection 49(1) capital gain when amount received for extending an option Where the owner of a farm granted an option for consideration to sell his farm in 2005 and received a further sum in 2006 to extend the option, those amounts would be recognized as gains in 2005 and 2006, respectively, pursuant to s. 49(1) except for the portions received respecting the principal residence (the farmhouse). ...

21 December 2006 External T.I. 2006-0170851E5 F- Option d'achat de biens immeubles-- summary under Subsection 49(4) Summary Under Tax Topics- Income Tax Act- Section 49- Subsection 49(4) refiling when option exercise in subsequent year Regarding where the owner of a farm (the correspondent’s father) granted an option for consideration to sell his farm in 2005 (resulting in the recognition of a capital gain under s. 49(1)), and the option was exercised in 2006, CRA stated: [S]ubsection 49(4) may allow your father to file an amended return for 2005 to exclude from income the proceeds he received for granting and extending the option. ...

2015 Ruling 2015-0589471R3- Earnout-- summary under Subsection 85(1) Summary Under Tax Topics- Income Tax Act- Section 85- Subsection 85(1) s. 85(1) rollover available on dirty s. 85 exchange In connection with the implementation of an earnout transaction for the purchase of Holdco common shares by a key employee, the (corporate) shareholders of Holdco (a Canadian-controlled private corporation holding Opco) first transfer a portion of their Holdco common shares to Opco in consideration for tracking preferred shares of Opco (with Opco immediately selling the purchased common shares on a five-year earnout basis to the key employee). ...

4 April 2005 External T.I. 2004-0099411E5 F- Transfert de contrat de crédit-bail-- summary under Subsection 49(1) Summary Under Tax Topics- Income Tax Act- Section 49- Subsection 49(1) CRA position on allocating lease payments to bargain purchase option extended to assignment of the lease agreement CRA noted its position that where a lease had a bargain purchase option, a portion of each lease payment was to be treated as allocable to consideration paid for the option and not as deductible rent, and then noted that if the lessee sold its interest in the lease agreement for an amount equaling the difference between the FMV of the property and the value of the future lease-payment obligations, such purchase price likely should be allocated to the embedded option. ...