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

IV and safe income exclusions under s. 55(2) can be doubled up 7 October 2021 APFF Roundtable Q. 6, 2021-0900961C6- APFF Q.6- Minimum Tax Carryover and TOSI General Concepts- Transitional Provisions and Policies CRA will honour incorrect AMT carryforward balances that arose due to an error in the CRA form Income Tax Act- Section 120.2- Subsection 120.2(3)- Paragraph 120.2(3)(b) CRA will not retroactively adjust returns that relied on a form error permitting TOSI to increase additional tax carryforwards 7 October 2021 APFF Roundtable Q. 7, 2021-0900971C6 F- Economic dependence Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) financial dependence as described in the jurisprudence is indicative but not dispositive of a non-arm’s length relationship 7 October 2021 APFF Roundtable Q. 8, 2021-0900981C6 F- Cost Recovery Method in IT-426R (Archived) Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) a limited partnership cannot use a cost recovery earnout 7 October 2021 APFF Roundtable Q. 9, 2021-0901101C6 F- Part IV tax exception vs eligible and non-eligible Income Tax Act- Section 55- Subsection 55(2) payment of non-eligible dividend by an Opco with both NERDTOH and ERDTOH to Holdco avoids s. 55(2) if the resulting s. 186(1)(b) tax is not refunded as part of the same series 7 October 2021 APFF Roundtable Q. 10, 2021-0901001C6- Application of subsection 184(3) and 185.1(3) Income Tax Act- Section 185.1- Subsection 185.1(3) concurrence can be given to the election in a share sale agreement before the excessive eligible dividend designation is identified Income Tax Act- Section 184- Subsection 184(3) CRA generally will accept the concurrence by a share vendor to an s. 184(3) election in advance of the excessive eligible dividend being identified 7 October 2021 APFF Roundtable Q. 11, 2021-0901011C6 F- Application of subsection 98(3) Income Tax Act- Section 98- Subsection 98(3) s. 98(3) could apply to wind-up of partnership with substantial goodwill Income Tax Act- Section 98- Subsection 98(5) a post-wind up drop down transaction would preclude the application of s. 98(5) 7 October 2021 APFF Roundtable Q. 14, 2021-0901041C6 F- Meaning of Any consideration received by Donee Income Tax Act- Section 118.1- Subsection 118.1(13)- Paragraph 118.1(13)(c) “consideration … received” in s. 118.1(13)(c) includes a s. 84(3) deemed dividend 7 October 2021 APFF Roundtable Q. 15, 2021-0901051C6 F- Exemption pour résidence principale Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(g) the s. 40(2)(g) formula can be prejudicial where there is delayed home construction on vacant land 7 October 2021 APFF Roundtable Q. 16, 2021-0901061C6 F- 2021 APFF Q.16- Disclosure of a counter letter Income Tax Act- Section 152- Subsection 152(4)- Paragraph 152(4)(a)- Subparagraph 152(4)(a)(i) failure to disclose a counter agreement is neglect or carelessness Income Tax Act- Section 116- Subsection 116(3) CRA may be willing to issue a letter confirming that no s. 116 certificate is required because the true vendor is a resident 7 October 2021 APFF Roundtable Q. 17, 2021-0901071C6- Application of section 120.4 Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Amount- Paragraph (e)- Subparagraph (e)(i) exclusion where business from which the dividend was derived had ceased in a prior year Income Tax Act- Section 120.4- Subsection 120.4(1)- Arm's Length Capital- Paragraph (c) a capital dividend from a related business was not a source of arm’s length capital 7 October 2021 APFF Roundtable Q. 18, 2021-0901091C6- TOSI continuity rule for inherited property Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Amount- Paragraph (e)- Subparagraph (e)(ii) s. 120.4(1.1)(b)(ii) can apply to shares distributed by inter vivos trust but as directed in will, so that (e)(ii) exclusion can apply Income Tax Act- Section 120.4- Subsection 120.4(1.1)- Paragraph 120.4(1.1)(b)- Subparagraph 120.4(1.1)(b)(ii) a dividend on shares that were distributed by an inter vivos trust, as directed in a will 15 years previously, can be excluded by s. 120.4(1.1)(b)(ii) 7 October 2021 APFF Roundtable Q. 19, 2021-0901121C6 F- APFF – ITR Remissions Income Tax Act- Section 152- Subsection 152(1) rate increase for rulings work 7 October 2021 APFF Roundtable Q. 20, 2021-0910491C6 F- ITRD internal evaluation process ...

Accordingly, to return to the illustrative numbers, the employee would realize a $101,000 s. 7(1)(b) benefit on the bad stock option exchange (even though in fact the old options likely were surrendered to Target for nil consideration), and might realize a further benefit of $10,000 rather than $110,000 on the subsequent surrender of her new options – on the basis that her "cost" of $100,000 reduces her second s. 7(1)(b) benefit, as suggested in the question posed.   ...

"  CRA has ruled that it is acceptable for a MIC to transfer a property (which it previously acquired on a mortgage foreclosure) to a newly-formed LP in consideration for LP units (presumably representing 99% or more of the LP equity), with the LP then developing the property – provided that limited liability for the MIC will be maintained as required by s. 253.1. ...

14 June 2015- 10:49am Alamos Gold, in form, will be the Targer in a merger-of-equals between it and AuRico Gold Email this Content It is proposed that AuRico will acquire all the shares of Alamos in consideration for AuRico common shares and nominal cash (so that a s. 85 election is required for rollover treatment), and then amalgamate with Alamos.  ...

Added points include: The barter rule (deeming nil consideration) in ETA s. 153(6) for provision of "make-up" gas in exchange for natural gas liquids which are consumed at a natural gas straddle plant can apply more than once in the same transaction, for example, where the natural gas owner provides rights to the natural gas to a third party who is obligated to return make-up gas, and the third party is supplied the make-up gas by the straddle plant operator for on-supply to the owner. ...

8 November 2015- 9:47pm CRA appears to accept that a s. 20(1)(m) reserve can be claimed for an amount included under s. 9 rather than 12(1)(a) Email this Content A distributor receives a payment from the manufacturer in consideration for a somewhat diffuse obligation to participate in stipulated marketing activities over the following eight years. ...

On a suggestion that a failure to charge a fee for the provision by Canco of a guarantee of debt of a foreign subsidiary (Forco) will not give rise to an investment by it in the subsidiary under the foreign affiliate dumping rules because "Canco benefits from Forco's access to debt capital," CRA responded that there would be no benefit conferral "if fair market value consideration were… given in exchange for the guarantee and it would be reasonable… to conclude that a party dealing at arm's length would provide the guarantee on the same terms" (which kinda sounds like "no. ...

Q.3 CRA has reversed its position at the 2014 STEP Roundtable (2014-0522961C6) that the standard contractual recital of $1 (but not a dollar more) of consideration will cause the safe harbour- from deemed s. 68 allocation to a restrictive covenant – to not be available. ...

The Kodiak shareholders will receive Whiting common shares from Whiting sub, with the sub simultaneously issuing common shares to Whiting in consideration for such Whiting common shares. ...