Search - consideration

CRA found this tax to be an “income or profits tax” Can the CRA provide any comments on its consideration of what constitutes an “income or profits tax”? ... Foreign Spinco issues shares to Foreign Pubco Notes from Presentation Commencing in 1997 (with 2006-0215751R3), CRA started issuing favourable rulings respecting cross-border butterfly transactions which avoided the s. 55(3.2)(h) problem for such butterflies by using the three-party "vaccine" [i.e., a three-party circular exchange of consideration so that Foreign Spinco is never a shareholder of DC- see Russell, “Cross-Border Butterfly Ruling,”]. ...

It would be fair to say that there would be a significant consideration to including those treaties where there would be a match prior to ratification. ... Just because tax is a consideration does not mean that you are automatically caught by the PPT. ...

Broadly speaking, taxpayers who are generally compliant and cooperative during the audit process should receive some consideration around materiality of the scope, and the number of tax years looked at. ... The integrated team will take into consideration whether the taxpayer has an effective tax control framework. ...

FA1 acquires the common shares of New FA3 from New FA2 in consideration for a promissory note in the amount of $100. ... Canco contributes the common shares of New FA3 to New FA2 in consideration for additional common shares of New FA2, such that subsection 85.1(3) applies to this transfer of shares. ...

After that decision, there was a major decrease in cases with arguments about economic substance – it just did not come up anymore, even though it was an important consideration. ... A transaction generally will not be under consideration where you can clearly say “that is a 100% tax-motivated transaction,” or “that is a 100% commercial transaction” because, of course, commercial transactions inherently have a tax dimension to them. ...

(d) Will the project be expanded to other sectors and if so, can CRA advise which sectors have been selected or are under consideration? ... However, we can provide the following information for your consideration. ... For example, a university whose predominant purpose is education and research would generally not acquire its main campus over 40% for the purpose of making taxable supplies for consideration. ...

That consideration will always be predicated on a review of all the facts and circumstances. ... For example, Father transfers shares of Opco (a small business corporation whose shares are eligible for the CGE) to his children in consideration for a note that is payable over 10 years, claims the capital gains reserve, but does not claim the CGE. The children transfer the Opco shares to a new Holdco in consideration for a note of Holdco, with a view to opco dividends funding note repayments. ...

Although the Income Tax Rulings program is there to provide advance comfort on the tax consequences of a transaction, as noted in IC70-6R12, CRA will not confirm the fair market value of a property, and the Rulings program is not in a position to verify the facts provided – and there are also timing considerations. ... A vendor (Vendor) sells all of its shares of a corporation (Target) to a purchaser corporation (Purchaser) in consideration for, exclusively, shares of the Purchaser. The agreement governing the purchase and sale of the Target shares (“the Agreement”) requires the Vendor to place some of the share consideration received from the Purchaser in escrow (“the Escrow Shares”) pending any downward post-closing adjustments to the purchase price. ...