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CRA indicated that s. 248(30) was enacted only to deal with the issue that “the common law considers that there is no gift where the donor receives an advantage or consideration in return for the property transferred,” and that s. 24 8(30) “has no impact … [on] what constitutes a gift in civil law” (and also indicated that a donative intent was required under both private law systems). ...

13 September 2007 External T.I. 2006-0214631E5 F- Déboursé pour usufruit ou droit d'usage-- summary under Subsection 248(3) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(3) instalments of purchase price for usufruct were cost of capital interest in a trust A taxpayer sold, to an arm’s length farm corporation, the usufruct or right of use for the use of land together with the buildings thereon for a term of 25 years in consideration of $30,000 payable in 6 annual instalments. ...

22 March 2006 External T.I. 2006-0168491E5 F- Vente de compte-clients et d'achalandage-- summary under Subsection 22(1) Summary Under Tax Topics- Income Tax Act- Section 22- Subsection 22(1) capital loss treatment if a s. 22 election is not made Regarding the consequences of the sale of a business of a financial securities advisor who provided life insurance policies and other products to clients, CRA stated: If the vendor and the purchaser jointly elect under subsection 22(1): the vendor can deduct the difference between the face value of the receivables sold and the consideration the vendor receives from the purchaser in computing the vendor’s income, The purchaser must include this difference in its income and will be able to treat the receivables as if they had arisen while the purchaser owned the business. ...

4 April 2005 External T.I. 2005-0110941E5 F- Transfert d'une police d'assurance-vie-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) factors relevant to determining FMV of life insurance policy After indicating that the acquisition by a shareholder of an interest in a corporate life insurance policy for less than the fair market value (FMV) of that interest would engage s. 15(1) to the extent of the excess of the FMV of the interest in the life insurance policy over the consideration paid, CRA stated: The FMV of an interest in a life insurance policy is not generally equivalent to its cash surrender value. ...

4 April 2005 External T.I. 2005-0110941E5 F- Transfert d'une police d'assurance-vie-- summary under Adjusted Cost Basis Summary Under Tax Topics- Income Tax Act- Section 148- Subsection 148(9)- Adjusted Cost Basis ACB of life insurance policy transferred to shareholder increased by s. 15(1) benefit After indicating that the acquisition by a shareholder of an interest in a corporate life insurance policy for less than the fair market value (FMV) of that interest would engage s. 15(1) to the extent of the excess of the FMV of the interest in the life insurance policy over the consideration paid, CRA stated: [T]he amount by which the FMV of the interest in the policy included in income under subsection 15(1) exceeds the cash surrender value will be included in the ACB calculation. ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Paragraph 212(1)(d) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d) lump sum non-contingent payment for distributorship right was not a royalty In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right to distribute its product in Canada, with Canco agreeing not to acquire or sell competitive products. ...

DC then transferred its marketable securities to three transferee corporations (TCs) for the three beneficiaries in consideration for “butterfly shares” – but with DC holding onto the notes that it received on the immediate redemption of the butterfly shares for a redacted period of time, after which DC was wound-up into the TCs, thereby resulting in deemed winding-up dividends and in the notes being extinguished on their being assigned to the TCs. ...

DC then transferred its marketable securities to three transferee corporations (TCs) for the three beneficiaries in consideration for “butterfly shares” – but with DC holding onto the notes that it received on the immediate redemption of the butterfly shares for a redacted period of time. ...

It was proposed that the acquisition by CanSub2 of the ForSub1 shares be followed by their s. 85.1(3) drop-down to a foreign subsidiary of CanSub2 in consideration for common shares of equivalent value. ...

In this regard, the cost of a property acquired by a corporation issuing shares as consideration for the acquisition of the property is equal to the amount credited to the stated capital of such shares. ...