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The principal announced features are: The 15% tax applies effective April 21, 2017 to the value of consideration for the transfer (including a beneficial transfer only) of a residential property in the “Greater Golden Horseshoe” where any of the transferees (e.g., a co-owner) is a foreign entity or taxable trustee. ... Although the Teranet system is not yet set up to collect the new tax, in the meantime all transfers registered after April 20 (and all reporting of beneficial conveyances) must contain a statement acknowledging that consideration has been given to the application of the new tax, and the tax must be paid directly to the Ministry of Finance (purportedly even before the legislation is drafted or passed). ...

This was accomplished by transferring their co-ownership interests on a s. 85(1) rollover basis to respective Newcos (“HP Newco”, in the case of Harvard Properties) in consideration inter alia for voting and non-voting shares, followed by a sale of those voting shares to an Abacus subsidiary (NH Properties) for promissory notes for under half of the sale price. ... Furthermore, he considered that the reasonable way in the circumstances to deny the tax benefit was to treat s. 160 as applying to the extent of the shortfall in consideration given on the transfer. ...

The taxpayers acquired such FMO units from TOM in consideration for issuing $161M in promissory notes. ... The units of FMO were repurchased by FMO for nominal consideration. The appellants had full (FMV) cost for their FMO units when acquired in steps 2 and 4, and the capital gains distribution in step 6 did not reduce the ACB of their units by virtue of s. 53(2)(h)(i.1)(A) and (B)(I). ...

A for-profit corporation which charges the families of non-resident minor children a fee for arranging for them to study at a Canadian school district and to be billeted at Canadian families, and pays tuition directly to the school district, was found to be earning its fees (through non-resident agents) from the non-resident families as consideration for an exempt educational service. ...

11 December 2013- 11:05pm CRA finds that the provision of paid support services by a charity to a joint venture corporation would be a bad business Email this Content A charitable corporation proposed that it and a taxable Canadian corporation would transfer assets including goodwill to a jointly owned CBCA corporation (Newco) in consideration for shares, with Newco apparently to carry on a business with the transferred assets and transferred employees.  ...

In this regard, CRA stated that a real estate property is only one property, so that it apparently was resisting the temptation to think of this transaction as a sale of $100,000 of the property in consideration for the assumption of the $100,000 hypothec, and a gift of the balance of the property for $100,000. ...

7 August 2015- 1:19am Gleig – Tax Court of Canada finds that promissory notes were a prescribed benefit for tax shelter purposes where the holder had no intention of demanding their payment Email this Content Although the language of the definition of a prescribed benefit in Reg. 231(6) (now Reg. 3100(1)) is aimed at more sophisticated arrangements that this, Lyons J found that promissory notes issued by investors to a promoter in consideration for the promoter incurring resource expenditures on their behalf were a prescribed benefit on the basis of the promoter’s testimony that it never intended to demand payment of the notes. ...

A proposed B.C. plan of arrangement contemplates that Coventry will sell its Ontario subsidiaries to a subsidiary of Chalice in consideration for Chalice shares, and then effect a stated capital distribution of the Chalice shares to the Coventry shareholders.  ...

28 September 2012- 12:34am CRA indicates that trailer fees are GST/HST exempt only if the dealer is not providing on-going client services in order to earn the fees Email this Content CRA has ruled that trailer fees received by dealers from the investment manager for an investment fund (presumably, a mutual fund) will be considered to be exempt consideration for having facilitated the sale of shares in the fund only if the dealer does not provide any post-sale servicing of the investor's account in order to earn the trailer fees, e.g., regularly contacting the client to review the appropriateness of this investment, and reviewing alternatives.  ...

18 August 2015- 2:25pm CRA rules on hybrid pipeline transaction Email this Content CRA has ruled on a sort of hybrid post-mortem transaction in which a portion of the estate’s common shares of "Investments" (which holds marketable securities and cash) are redeemed in its hands for a promissory note (thereby giving rise to a capital loss which will be carried back under s. 164(6) to the terminal year) and it sells the balance of its shares to a "Newco" in consideration for a Newco promissory note. ...