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CRA responded: The arrangement … appears to be one of bartering whereby the PSB provides services to its client in exchange for the use of an automobile and possibly other consideration paid by the client. ...

Sub2 will transfer its interest in Partnership to Sub1 in consideration for Sub1 Preferred Shares and a non-interest bearing promissory note (the “Sub1 Note”), jointly electing under s. 85(1). ...

9 May 2007 External T.I. 2006-0189931E5 F- Renonciation à une fiducie par un conjoint-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition extinguishment of trust interests on their renunciation is a disposition of the renounced interest, but resulting variation of trust to accelerate distribution entitlements is not Regarding the 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, CRA stated: [The] definition of disposition is not exhaustive. ...

9 May 2007 External T.I. 2006-0189931E5 F- Renonciation à une fiducie par un conjoint-- summary under Paragraph 104(4)(a) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(4)- Paragraph 104(4)(a) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not engage s. 104(4) until distribution The beneficiary of a testamentary spousal trust renounces 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. ...

9 May 2007 External T.I. 2006-0189931E5 F- Renonciation à une fiducie par un conjoint-- summary under Subsection 70(6) Summary Under Tax Topics- Income Tax Act- Section 70- Subsection 70(6) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not deny s. 70(6) rollover The beneficiary of a testamentary spousal trust renounces 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. ...

After noting that “a payment that is made to induce the recipient to do something will generally be considered an inducement payment,” the Directorate found that the value of the warrant was to be included in Aco’s income given that inter alia “[a]ccording to Aco's minutes, it appears that the warrant induced Aco to enter into the operating agreement for a period of XXXXXXXXXX years instead of a shorter period” and only the cash consideration was treated by the parties as the sale price for the assets. ...

14 February 2008 Internal T.I. 2007-0256401I7 F- Vente d'un surplus actuariel-- summary under Subparagraph 56(1)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(a)- Subparagraph 56(1)(a)(i) amount of asset sale price allocated to actuarial surplus was includible under s. 56(1)(a)(i) as being in lieu of refund of such surplus Before concluding that the portion of the sale price allocated on the sale of a business division to the actuarial surplus in the pension plan was to be included in the vendor’s income under s. 56(1)(a)(i), the Directorate quoted from Transocean regarding the meaning of “in lieu of payment of”, indicated that this established a test of whether the amount was a "reasonable substitute for a superannuation or pension benefit," and concluded: Instead of obtaining a refund under the terms of the Plan, the Vendor elected to assign its rights to the Purchaser in consideration for a payment of $XXXXXXXXXX. ...

Holdings will dispose of its partnership interest in Partnership1 to Taxpayer and, as consideration therefor, Taxpayer will issue additional common shares and an interest bearing promissory note (“Note1”) to Holdings, with a joint s. 85(1) election being made. ...

Parentco will transfer to Sisterco a portion of its Holdco common shares on a s. 85(1) rollover basis in consideration for redeemable preferred shares. ...