Search - consideration

The key consideration is that the secured property in question can be used only to repay the shareholder debt (which is defined in paragraph 15(2.16)(a)). ...

The capital interest has not been acquired for consideration by the beneficiary, who is the only capital beneficiary under the trust. ...

It is possible to envision a US consolidated group owned by a Canadian MNE where the US top affiliate has licensed IP from, say, a Luxembourg IP Box affiliate, and then lets the US operating subsidiaries in the group use such IP without payment and in the absence of a formal sub-licensing arrangement. 2 nd departure: throughout-the-year connection between 2 nd and 3 rd FA (p. 9) Second, Cap D requires a sort of "permanent connection" between the holding affiliate, FA2, and the operating affiliate, FA3, by imposing the condition that either the income earning purpose of the borrowing or the amount payable for property acquired relate to "the property" that is, throughout the particular period, excluded property of FA2 that is shares of the capital stock of FA3….For example, if FA2 acquires from FA1 preferred shares of FA3 that is otherwise owned by FA2 in consideration for an interest-bearing note and then FA2 wishes to simplify the share capital of FA3 (now wholly-owned by it) to eliminate the preferred shares, there can be uncertainty as to the application of Cap D going forward depending upon how the preferred shares are eliminated. ...

The purchase of a business asset from the shareholder for fair market value consideration could be caught under an asset tracing test but not a value test. ...

Potentially more robust result if Dad exchanges his prefs for voting prefs of TCs before he is redeemed (pp. 7-8) There is greater certainty if Dad instead transfers his DC preferred shares to each of the TCs in consideration for voting shares of the TCs, with the TCs then redeeming those shares. ...

Kyle Lamothe, Alexander Demner, "Retroactive Relief from section 212.1 ‘Look-Through’ Rules Proposed for Post Mortem Pipelines", Tax for the Owner-Manager, April 25, 2025, Vol 25, No. 2, p. 4-- summary under Subsection 212.1(6) Summary Under Tax Topics- Income Tax Act- Section 212.1- Subsection 212.1(6) Current conduit rule (p. 5) In a pipeline transaction where an estate with a non-resident beneficiary transfers its shares of Opco to a Newco in consideration for a note of Newco, Newco will be deemed under the current version of the s. 212.1(6)(b) conduit rule to pay to the non-resident beneficiary a dividend (subject to Part XIII tax) based on the note amount, that is generally proportionate to the relative FMV of that beneficiary's interest in the estate. ...

Robert Kopstein, Rebecca Levi, "When Should the Courts Allow Reassessments Beyond the Limitation Period", Canadian Tax Journal, (2010) Vol. 58, No. 3, 475-527-- summary under Subparagraph 152(4)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 152- Subsection 152(4)- Paragraph 152(4)(a)- Subparagraph 152(4)(a)(i) After a lengthy review of the jurisprudence on late assessments, the authors stated (at pp. 509-11): The following circumstances were found by the courts not to justify late reassessment: The taxpayer filed on the basis of an honestly held belief after careful consideration of the statutory reporting requirements, [fn 90: Reilly Estate v. ... The Queen, 2007 DTC 734, at paragraph 93 (TCC)] What appears from this review is that the courts have upheld late reassessments in circumstances where the taxpayer's filing position was not supportable in the legal landscape existing at the time of filing, either because the position taken was contrary to clear law, or because it would have been had unambiguous facts been properly characterized, and where diligent and careful consideration would have made this evident at that time.... ...

[W]here the purchaser is providing consideration for loss balances, such consideration will generally account for the estimated time horizon to utilize such losses. ...

A transfer of property to the trust for consideration is treated as occurring as a consequence of death when the will requires the spouse or spousal trust to make the payment for the property. ... [F.n.223 Maria Elena Hoffstein, "Restructuring the Will and the Testamentary Trust: Methods, Underlying Legal Principles, and Tax Considerations," Personal Tax Planning feature (2012) Canadian Tax Journal 719-39.] ...

The result is that the assignee is taxed twice on the deposit, once when the assignee pays the $700,000 replacement deposit to the purchaser, and a second time at closing when the vendor applies the deposit (which belongs to the assignee) as consideration for the purchase and collects the HST due on the full contract price. ...