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(h) A publicly-trade mutual fund trust (the "Fund") eliminated a corporate subsidiary ("Holdings") by incorporating a subsidiary ("MFC") with a modest value, distributing interests in MFC to its unitholders as a capital distribution in order that MFC would qualify as a mutual fund corporation, transferring Holdings to MFC on a s. 85(1) rollover basis in consideration for MFC shares, having MFC amalgamate with Holdings to form MFC Amalco, and then having MFC Amalco merge into the Fund in accordance with s. 132.2 so that the Fund acquired the assets of MFC Amalco, principally, units in a subsidiary LP. ...

2004 Ruling 2003-0053981R3- XXXXXXXXXX-- summary under Paragraph 107.4(3)(m) Summary Under Tax Topics- Income Tax Act- 101-110- Section 107.4- Subsection 107.4(3)- Paragraph 107.4(3)(m) units must be received on drop-down of LP to new subtrust (thereby ousting s. 107.4(2)(a)), in order to receive outside basis under s. 107.4(3)(m) The Fund, which is an exchange-traded mutual fund trust, will for nominal consideration subscribe for one Trust Unit of a unit trust (the “Trust”) that was settled by a third party, and redeem the initial Trust Unit held by that third party for its cash subscription price. ...

Absent exceptional circumstances, such degree of integration would be expected to exist where for no consideration a mutual fund trust guarantees a debt incurred by a wholly-owned subsidiary to finance its commercial operation.... ...

BForHoldco then transfers its B shares to Opco in consideration for the issue of shares of a new class of common shares of Opco (with this "tuck-under" transaction not being ruled on), Aco effects a simultaneous s. 86 exchange of its shares in Opco (so as to preclude the tuck-under transaction giving rise to an acquisition of control of Opco by Aco), and BCo and Opco then amalgamate by way of a vertical short-form amalgamation. ...

The non-resident transfers the Holdco shares to Opco in consideration for redeemable preferred shares of Opco, thereby realizing a capital gain that is treaty-exempt. ...

BForHoldco then transfers its B shares to Opco in consideration for the issue of shares of a new class of common shares of Opco (with this "tuck-under" transaction not being ruled on), Aco effects a simultaneous s. 86 exchange of its shares in Opco (so as to preclude the tuck-under transaction giving rise to an acquisition of control of Opco by Aco), and BCo and Opco then amalgamate by way of a vertical short-form amalgamation. ...

10 November 2004 External T.I. 2004-0092561E5 F- 85(1), 248(1) "Disposition"-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition no disposition to the extent that there is a dirty s. 95 exchange of old common shares for identical new common shares An individual transfers his 100 common shares of a corporation to the corporation in consideration for 500,000 preferred shares and 100 common shares of the corporation, with the 100 common shares previously held by him being cancelled. ...

CRA stated: In broad terms, a deemed trust established under those provisions ceases to apply to property of a tax debtor when the tax debtor disposes of the property in the normal course of business for FMV consideration to an arm's length bona fide purchaser. ...

In finding that the supplies of T-shirts by the charity to the donors were not exempt, with HST or GST applying on the consideration of $X for each supply of a T-shirt, CRA stated: excluded from exemption under paragraph 3(a) of Part V.1 of Schedule V is a supply by way of sale of any personal property or service made by a charity in the course of a fund-raising activity where: • the charity makes supplies of such property or services in the course of that activity on a regular or continuous basis throughout the year (any period of twelve consecutive months) or a significant portion (30% or more) of the year; or • the agreement for the supply entitles the recipient to receive from the charity property or services on a regular or continuous basis throughout the year or a significant portion of the year.....as XXXXX supplied the t-shirts to contributors on a weekly basis from XXXXX to early XXXXX, it sold the t-shirts on a regular and continuous basis throughout a significant portion of the year. ...

In finding that the supplies of T-shirts by the charity to the donors were not exempt, with HST or GST applying on the value of $X for each supply of a T-shirt, CRA stated:...where the charity provides the person making the contribution with property or a service of more than nominal value that served as an inducement to make the contribution, then for ETA purposes, the amount of the contribution is not regarded as a gift but as consideration for the supply of the property or service given in return by the charity. ...