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Miscellaneous severed letter

4 April 1990 Income Tax Severed Letter 90M04438 F - Transfers for Inadequate Consideration

4 April 1990 Income Tax Severed Letter 90M04438 F- Transfers for Inadequate Consideration Unedited CRA Tags 85(1)(e.2), 86(2), 87(4), 51(2), 55(2), 110.6(7)      24(1)      April 4, 1990      PART II Transfers for Inadequate Consideration {85(1)(e.2); 86(2); 87(4) and 51(2)} The corporate reorganization sections in the Income Tax Act contain provisions which impose "penalties" for transfers to or share exchanges with corporations where the value of the property given up exceeds the value of the property received, and "it is reasonable to regard any part of such excess as a benefit that the taxpayer desired to have conferred on a person related to the taxpayer. ...
Technical Interpretation - External

13 May 2014 External T.I. 2014-0525491E5 - Emigration to Poland - Various tax considerations

13 May 2014 External T.I. 2014-0525491E5- Emigration to Poland- Various tax considerations CRA Tags 212(1)(h) Treaties Article XVII Treaties Article XVIII 212(1)(l) Treaties Article III Principal Issues: 1) Canadian withholding tax implications in respect of monthly RPP, RRSP, OAS, CPP and QPP payments and a RRSP lump sum payment received by an individual resident of Poland; 2) Canadian income tax implications in respect of sale of a piece of land situated in Canada by an individual prior to and after his/her emigration from Canada; and 3) Limitation period in paragraph 3 of Article 23 of the Canada-Poland Tax Treaty. ...
Public Transaction Summary

Agnico/Yamana/Osisko -- summary under Shares for Shares and Cash

Each Class A share will then be transferred to Acquisitionco (an Ontario Newco owned on a 50-50 basis by Agnico and Yamana or their subsidiaries) in consideration for the "Transaction Consideration," comprising $2.09 of cash, 0.07264 of an Agnico common share and 0.26471 of a Yamana common share. Non-resident shareholders will receive New Osisko shares instead as consideration for the transfer of their Osisko shares to Acquisitionco. ... Each Osisko common share held by a non-resident or acquired in 4 will be transferred to Acquisitionco in consideration for the right to receive the Transaction Consideration and the right to receive one New Osisko common share. ...
Technical Interpretation - Internal

15 October 2009 Internal T.I. 2009-0314641I7 - Tax Considerations in an International Insolvency

15 October 2009 Internal T.I. 2009-0314641I7- Tax Considerations in an International Insolvency Unedited CRA Tags s. 20(1)(c), 111(1), 128(1)(d) ITA s. 150(1)(a), 152(4), 152(7) ITA s. 4.1, 121(1) BIA s. 11, 12, 18.6 CCAA Principal Issues: 1. ... October 15, 2009 XXXXXXXXXX Tax Services Office HEADQUARTERS Audit Division Lindsay Frank Attention: XXXXXXXXXX (613) 948-222 Large File Case Manager 2009-031464 Tax Considerations in an International Insolvency This is in reply to an email from XXXXXXXXXX concerning tax matters related to the insolvency of XXXXXXXXXX On XXXXXXXXXX filed a petition for relief, pursuant to Chapter 11 of the United States Bankruptcy Code ("Chapter 11 Proceedings"). ...
Public Transaction Summary

IMIC/Afferro -- summary under Canadian Buyco

IMIC/Afferro-- summary under Canadian Buyco Summary Under Tax Topics- Public Transactions- Mergers & Acquisitions- Cross-Border Acquisitions- Inbound- Canadian Buyco IMIC plc acquisition of Afferro Resources using Canadian Buyco Overview Under a B.C. plan of arrangement, shareholders of Afferro will receive, for each Afferro share, £0.80 in cash and a 2-year unsecured convertible note of IMIC (the "Convertible Note") bearing simple interest of 8% on the principal of £0.40 (collectively, the "Consideration"). ... Plan of Arrangement Under the Plan of Arrangement: IMIC will subscribe cash for common shares of Subco (to be issued "concurrently" with the acquisition of the Afferro shares by Subco below), and a further amount, equal to the amount of the Convertible Note consideration to be delivered by Subco, as the subscription amount for further Subco common shares also to be issued at such "concurrent" time Each common share of a dissenter will be transferred for its fair value to Subco Each Afferro stock option will be cash-surrendered Each common share of Afferro, other than of a dissenter, will be transferred to Subco in consideration for the (cash and Convertible Note) Consideration, which IMIC is directed to deliver on Subco's behalf Concurrently with the above step, Mano River will make the IMIC Loan to IMIC in the amount of US$70M Each Afferro share held by IMIC will be transferred to Subco in consideration for a common shares of Subco Afferro will file an election with CRA to cease to be a public corporation Afferro and Subco will amalgamate to form one corporate entity ("Amalco") under s. 269 of the BC Business Corporations Act under the name Afferro Mining Inc., with each Subco share continuing as an Amalco share; "the stated capital of the common shares of Amalco will be an amount equal to the paid-up capital, as that term is defined in the Tax Act, attributable to the common shares of Subco immediately prior to the amalgamation" U.K. ...
Public Transaction Summary

Mitel/Polycom -- summary under Inversions

This is being accomplished by a portion of the cash consideration for the public’s shares of Polycom being paid in cash (with much of the cash coming from Polycom itself.) ... ") The shares of Polycom stock held by each Polycom stockholder will be divided between these transactions based on the relative fair market values of these two merger consideration categories. ... The merger agreement provides for the issuance, on the merger, of shares by Polycom to Mitel (or Merger Sub’s immediate Delaware parent) in consideration for Mitel's payment of the aggregate consideration to the Polycom shareholders. ...
Technical Interpretation - External

13 October 1994 External T.I. 9425475 - 7(1.5) APPLICATION WHIT NON SHARE CONSIDERATION

Principal Issues: 85.1(1) and 7(1.5) apply to share for share exchanges; the Department allows 85.1(1) to apply to some transfers where non-share consideration was also received. ... Section 85.1 has similar rollover provisions for share for share exchanges, and also does not apply where there was consideration received other than shares. The Department has stated in Interpretation Bulletin IT-450R that subsection 85.1(1) can still be used where non-share consideration was received if the vendor can identify the proportion of each share or group of shares for which only shares were received as consideration. ...
Administrative Letter

26 October 1990 Administrative Letter 90M11356 F - Loan Guarantee from Non-resident for No Consideration

26 October 1990 Administrative Letter 90M11356 F- Loan Guarantee from Non-resident for No Consideration Unedited CRA Tags 214(15)(a), 245(2) CTF- 1990 Conference Report QUESTION I 78 Loan Guarantee from Non-resident for no Consideration A Canadian corporation ("Canco") borrows funds from an arm's length lender (the "lender"). Canco's non-resident parent corporation (the "parent") guarantees the loan for no consideration. ... Since the parent did not receive consideration for its guarantee of the loan, the parent will not be deemed by paragraph 214(15)(a) of the Act to have been paid interest on the loan. ...
Miscellaneous severed letter

7 November 1990 Income Tax Severed Letter - Loan guarantee from non-resident for no consideration

7 November 1990 Income Tax Severed Letter- Loan guarantee from non-resident for no consideration Unedited CRA Tags 214(15)(a) QUESTION I 78 Loan Guarantee from Non-resident for no Consideration A Canadian corporation ("Canco") borrows funds from an arm's length lender (the "lender"). Canco's non-resident parent corporation (the "parent") guarantees the loan for no consideration. ... Since the parent did not receive consideration for its guarantee of the loan, the parent will not be deemed by paragraph 214(15)(a) of the Act to have been paid interest on the loan. ...
Technical Interpretation - Internal

18 October 2011 Internal T.I. 2011-0408371I7 - Consideration on s.160 Assessment

The amount of the transferee's liability is equal to the lesser of the fair market value of the property transferred less the consideration paid, and the transferor's total tax liability owing in the year of the transfer or any preceding year. ... In order to succeed, the spouse must produce evidence that she gave consideration for the transfer of the residential property. ... On the other hand, were the wife to produce evidence of consideration paid, the value of that consideration would require a formal valuation of the increase in the value of the shares.Should you have any questions or require additional information, please do not hesitate to telephone Richard Aronoff at the number provided above. ...

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