Search - consideration

The UK Supreme Court found that the compensation payments made by LMUK to a redeemer were consideration for a supply of services by the redeemer to LMUK itself, rather than representing third-party consideration for a supply of goods or services by the redeemer to the customer who redeemed points- so that  LMUK was entitled to the British equivalent of an input tax credit. ...

Notes will be issued as part consideration for the transfer of the properties to the LP, before being immediately converted into LP units.  This pseudo note consideration has the effect of guaranteeing a minimum cost to the LP for those properties. ...

To bust a s. 85.1 rollover and force s. 85 elections, the Brigus shareholders also will receive very nominal cash consideration (of $0.000001 per share) from Primero – but with the aggregate cash consideration received by each shareholder rounded up to the nearest nickel.  ...

27 January 2016- 11:47pm Laval University – Tax Court of Canada finds that an agreement to offer, at a distant date, to license premises to unidentified individuals was deemed to be a real property supply Email this Content Tardif J found that two agreements under which Quebec City agreed to pay a $10M grant to Laval University for the expansion of its sports complex and the University agreed that the City populace would have access to the complex for 70% of its operating hours constituted a supply by the University in consideration for the $10M. ... The Queen, 2016 CCI 17, under ETA s. 123(1) – consideration, s. 136(1). ...

CRA has now ruled that the charges made by ACo to its customers to recoup the OTS fees paid by it are part of the consideration for its sales to them, so that those charges are subject to HST. ... Summary of 18 September 2015 Ruling 168521r under ETA s. 123(1)- consideration. ...

CRA effectively considers that the specified amount must be a specific dollar amount (not exceeding the fair market value of the consideration for which the shares were issued), which will not be considered to have changed on the subsequent operation of a price-adjustment clause on the redeemed shares’ redemption amount. ... On the other hand, if the PAC were to become operative to reduce the redemption amount to an amount that is less than the specified amount, the requirement in subsection 191(4), that the specified amount not exceed the fair market value of the consideration for which such shares were issued, would not be met. ...

26 July 2016- 11:32pm CRA indicates that late-filed ETA s. 156 elections will not be accepted if there was negligence or GST/HST in fact was charged Email this Content Since 2014, GST/HST nil consideration elections under ETA s. 156 have been required to be filed with CRA rather than just stuffed in a filing cabinet. CRA has now published a Policy on when it will accept late-filed elections, which in addition to other more mechanical or obvious criteria, specifies that the parties must have consistently treated their inter-group supplies as having been made for nil consideration from the requested effective date onwards, the request for the late filing must “provide a clear explanation as to why the specified members have filed the election… late,” and “the parties to the late-filed election...must not have been negligent or careless in complying with the provisions of section 156.” ...

In its new Folio on the prohibited investment rules, CRA states that this test is not restricted to consideration of the voting rights of the shares: [T]he phrase governance of the investment entity should be given a wide meaning. ... CRA provides an example of a situation where it would give “favourable consideration” to waiving under s. 207.6(2) the 100% advantage tax. ...

8 March 2017- 12:18am InterOil – Yukon Supreme Court indicates that all plans of arrangement must be accompanied by a fairness opinion prepared on a fixed fee basis Email this Content A decision of the Yukon Court of Appeal reversed approval of the plan of arrangement for the acquisition of InterOil by ExxonMobil on the basis inter alia that the Circular did not contain information permitting InterOil shareholders to properly assess the adequacy of contingent cash consideration to be paid to them based on the subsequently-measured size of InterOil’s natural gas resource. ExxonMobil then returned with an offer that was essentially the same, except that the contingent cash consideration was capped only once the resource size reached a quite unlikely level. ...

22 August 2017- 12:41am Tembec is to be acquired by Rayonier AM or a sub of Rayonier AM for 2/3 cash and 1/3 Rayonier AM shares Email this Content Tembec, which is a TSX-listed CBCA corporation, agreed to a CBCA Plan of Arrangement with NYSE-listed Rayonier AM under which its (common) shares were to be acquired by Rayonier AM for consideration (at each Tembec shareholder’s option) of C$4.75 cash or 0.2542 of a Rayonier AM common share – except that proration would occur so as to result in the overall consideration being more or less fixed at 67% cash and 33% shares. ...