Search - consideration

31 May 2004 External T.I. 2003-0051971E5 F- Notion de capital aux fins de 20(1)c) de la Loi-- summary under Subparagraph 20(1)(c)(i) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c)- Subparagraph 20(1)(c)(i) stated capital inadequately measures capital for “filling the hole” purposes where PUC is ground under s. 85(2.1) or stated capital is increased to capitalize consolidated safe income What is the measure of capital for s. 20(1)(c) purposes where shares issued as consideration for other shares on a s. 85(1) share-for-share exchange have their paid-up capital reduced from their stated capital of $800,000, to $700,000 pursuant to s. 85(2.1), or where the stated capital of shares is increased by an amount equal to consolidated safe income of the corporation? ...

Where a taxpayer leaves behind leasehold improvements made to premises without consideration, the taxpayer is deemed to have disposed of the improvements for nil proceeds of disposition at the time referred to above. ...

A disposed of his HOLDCO preferred shares to OPCO in consideration for OPCO shares with the same tax attributes. ...

For foreign income tax reasons, MCo is precluded from a direct method of leveraging, namely, incorporating a wholly-owned subsidiary ("OCo"), and transferring its NCo shares to OCo for an interest bearing loan and share consideration and having NCo and OCo amalgamate. ...

3 August 2004 External T.I. 2004-0066431E5 F- Contrat de rente et fiducie-- summary under Subsection 75(2) Summary Under Tax Topics- Income Tax Act- Section 75- Subsection 75(2) "by a trust" includes any transaction performed by the trustees In 2003-004063 CRA concluded that s. 75(2) applied to a donor who, under a charitable annuity arrangement, transferred an amount to a trust in consideration for which the donor acquired a right to receive an annuity from the trust, with the excess of the amount so received by the trust over the normal cost of the annuity granted constituting a gift received by the trust. ...

In finding that both amounts were interest, the Directorate stated: [T]he interest awarded by the court under the provisions of Article 1618 CCQ as well as the additional indemnity awarded to the taxpayer under Article 1619 CCQ are interest by their nature since they represent a return, consideration or indemnity for the use or holding by the wrongdoer of a sum of money that was due to the taxpayer. ...

A sold all of A’s Opco shares to Holdco for non-share consideration equal to the fair market value of the shares disposed of. ...

A, who held ½ of the common shares of Opco having a PUC and ACB of $100, a safe income on hand of $699,900 and a fair market value of $1,000,000, transferred his common shares to a new corporation (“Holdco”) in consideration for common shares of Holdco, with the s. 85(1) agreed amount being $300,000, thereby realizing a $299,900 capital gain for which he claimed the capital gains deduction. ...

A sold her Opco shares to Holdco in consideration for a term note payable over 5 years. ...

A sold her Opco shares to Holdco in consideration for a term note payable over 5 years. ...