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Regarding whether such adjustments should be regarded as being to the purchase price for the real estate, so that normally no GST/HST should be charged on such adjustments (based on the ETA ss. 221(2) and 228(4) self-assessment rule or a residential real estate exemption), CRA treated this as essentially a question relating to an application of the single-supply doctrine, so that “if an obligation is inextricably tied to the real property itself, then it is likely not a separate supply from the sale of the real property and the adjustment likely increases or decreases the value of consideration” for the real estate, whereas “if it is determined that an obligation giving rise to the adjustment is a separate supply from the sale of the real property that is not incidental to the sale of the real property, then the application of the GST/HST to the adjustment depends on the nature of the separate supply itself.” ...

26 August 2021- 11:53pm 9267-9075 Québec – Tax Court of Canada finds that failure to remit GST on reporting a sale to an insolvent purchaser precluded a subsequent bad debt credit Email this Content In 2012, a company (“9267”) sold domain names to another corporation (“9210”) that was owned equally by its individual shareholder and an unrelated individual for cash consideration to be paid in instalments. ...

Shortly after completion of the arrangement, some companies associated with the Healthcare of Ontario Pension Plan will contribute eight properties to Primaris REIT in consideration for $200M in cash and units of Primaris REIT, resulting in them ending up with a 26% equity interest. ...

24 January 2022- 11:21pm Robillard Estate – Tax Court of Canada finds that MacDonald established that s. 84(2) applied to a speedo pipeline – but doubts MacDonald’s correctness Email this Content An estate engaged in accelerated pipeline transactions in which it transferred shares (stepped up under s. 70(5)) of a portfolio company (“Holdco”) to a Newco in consideration for a note, with Holdco being wound up into Newco a day later – and with the note being repaid by Newco to the estate about three weeks later. ...

The resulting breadth of the required public disclosure will make become a significant factor in some structurings, including careful consideration of which entities will have activity in Quebec. ...

In particular, the ARQ appeared to be struck by the artificiality of the agreement between JDI and IPPL that JDI would accomplish its servicing of the equipment under its “services agreement” with IPPL by means of delegating to IPPL the performance of such services as its agent, in consideration for fees going in the opposite direction. ...

The reason for the mistake is simply not a consideration in the application of the section. ...

It was then proposed that a conventional pipeline be implemented under which AE Trust transferred its common shares of Aco and Bco on a s. 85(1) rollover basis to a “Newco” in consideration for two notes of Newco and nominal-value preferred shares with a price adjustment clause and, after the passage of (presumably) one year, Newco would be amalgamated with Aco and Bco, and the notes would then be gradually repaid. ...

A is an advisor or a promoter in respect of the sale of the financial product (notably whether she acted in a manner described in the definition of “advisor” or “promoter” in s. 237.3(1) in respect of the sale of the financial product); the terms of the sale of the financial product and the series of transactions, of the financial product, and of the consideration received by Ms. ...

IV tax circularity issues are avoided by having a TC year end occur between TC’s purchase for cancellation of its preferred shares held by DC in consideration for a demand note, and DC’s purchase for cancellation of its shares held by TC for a demand note (so that TC is subject to Pt. ...