Search - consideration

However, "if the agreement is structured in a manner that the incidents of beneficial ownership of the securities remain with the lender the transaction may not be a sale and the cash consideration paid to the lender could in such case be considered a loan made by the borrower to the lender". ...

26 September 2002 External T.I. 2002-0128955 F- 84.1(1)(b) Deem Dividend 83(2) CDA-- summary under Subsection 83(2) Summary Under Tax Topics- Income Tax Act- Section 83- Subsection 83(2) s. 84.1 deemed dividend to someone who in fact was not a shareholder was not eligible for an s. 83(2) election An individual disposed of all of the shares of a private corporation to a corporation wholly owned by his wife (OP2) in consideration for a note of OP2, and wished for OP2 to elect under s. 83(2) for the dividend that was deemed to be received by him pursuant to s. 84.1(1)(b) to come out of OP2’s capital dividend account (CDA). ...

30 October 2002 Internal T.I. 2002-0134077 F- ATTRIBUTION DES GAINS EN CAPITAL-- summary under Subsection 74.2(1) Summary Under Tax Topics- Income Tax Act- Section 74.2- Subsection 74.2(1) indirect transfer where individuals transfer shares to their Holdcos, who transfer such shares to the individuals’ respective spouses Two individuals transferred the shares they held of a particular company to their respective holding companies which, in turn, each disposed of a portion of those shares to the individuals’ respective spouses in consideration for non-interest-bearing notes. ...

30 October 2002 Internal T.I. 2002-0134077 F- ATTRIBUTION DES GAINS EN CAPITAL-- summary under Subsection 74.5(6) Summary Under Tax Topics- Income Tax Act- Section 74.5- Subsection 74.5(6) presence of indirect transfer through Holdcos for s. 74.5(1) purposes reinforced by s. 74.5(6) Two individuals transferred the shares they held of a particular company to their respective holding companies which, in turn, each disposed of a portion of those shares to the individuals’ respective spouses in consideration for non-interest-bearing notes. ...

. … [Furthermore] it seems reasonable … to conclude that Madame desired to confer a benefit on Monsieur since, as sole director of the Corporation, it was she who chose to set the redemption value of the Class D shares at an amount lower than the FMV of the Class A shares transferred in consideration. ...

20 November 2002 External T.I. 2002-0153635- Exchange rights iss-- summary under Subsection 132(7) Summary Under Tax Topics- Income Tax Act- Section 132- Subsection 132(7) Non-residents who had sold a business to a Canadian corporation owned by a unit trust in consideration for notes and shares of the corporation had the right to exchange such notes and shares for units of the unit trust provided that this did not result in non-residents owning more than 49% of the units of the trust. ...

20 December 2002 External T.I. 2002-0164735 F- PRODUIT DE DISPOSITION ACHALANDAGE-- summary under Paragraph 12(1)(g) Summary Under Tax Topics- Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) s. 12(1)(g) applicable to incremental pharmacy sales price for goodwill based on volume of prescriptions for post-sale years On a sale of the business of a pharmacist, the consideration for the goodwill sold is equal to the number of prescriptions sold over a 12-month period multiplied by a set amount ($2.50) per prescription but is increased by a further $2.50 per such number of prescriptions for each completed two-year period during the six-year term of the agreement during which the lease was successfully renewed. ...

However … consideration should continue to be given to legal form with respect to items that are required to be included in the computation of capital either as loans, advances or indebtedness. ...

The position of the taxpayer "that in order that 40(3.5)(c) applies, a share disposed of must first meet the three conditions under s. 40(3.3) applicable to capital property disposed of and for a period of 30 days after the disposition, before the deeming rule provided under s. 40(3.5)(c) can be taken into consideration" did not make sense. ...

B of any right, interest or holding in Opco to Portfolioco pursuant to paragraph 69(1)(b)… [for deemed] consideration equal to the fair market value of the property disposed of. ...