Search - consideration

X for cash consideration by a purchaser corporation (the “Parent”). Target is then wound up and the Parent wishes to “bump” the shares of Newco acquired on the wind-up. ... Newco will acquire the Property from Target during the course of the preliminary transactions, and will issue shares to Target in consideration for those assets. ... Issue You request our confirmation that, for purposes of clause 88(1)(c)(vi)(B) of the Act, the Property transferred to Newco by Target would not be property acquired by Newco in substitution for the Newco shares issued to Target in consideration for such property. ...

The Plaintiff alleged in the claim that the Defendant issued malicious and false opinions which resulted in the Plaintiff being eliminated from consideration for employment by another group of employers. ... The most common considerations can be the extent that a settlement can be regarded as being in the nature of employment income or a retiring allowance, which are taxable, or non-taxable personal damages. ... However, as indicated above, the reasonableness of an allocation within a settlement is also a consideration. ...

When a taxpayer disposes of both depreciable and non-depreciable property for a lump sum, the part of the consideration which can reasonably be regarded as being consideration for the depreciable property will be deemed to be its proceeds of disposition. However, whether the consideration for the depreciable property is "reasonable" is a question of fact, and in order to make such a determination, it is necessary to review all the facts surrounding a particular situation. ... However, where the total sale price does not exceed the fair market value of comparable land, it may be reasonable to conclude that the sale was essentially one of land and that the price was in consideration only of land. ...

Pursuant to proposed paragraphs 80(2)(g) and 80(2)(g.1) of the Act: (g) where a corporation issues a share (other than an excluded security) to a person as consideration for the settlement of a debt issued by the corporation and payable to the person, the amount paid in satisfaction of the debt because of the issue of the share shall be deemed to be equal to the fair market value of the share at the time it was issued; (g.1)where a debt issued by a corporation and payable to a person is settled at any time, the amount, if any, that can reasonably be considered to be the increase, as a consequence of the settlement of the debt, in the fair market value of shares of the capital stock of the corporation owned by the person (other than any shares acquired by the person as consideration for the settlement of the debt) shall be deemed to be an amount paid at that time in satisfaction of the debt; Under these proposed provisions a corporate debtor is considered to have paid an amount in satisfaction of a debt equal to the fair market value of a share, where that share is issued by the debtor as consideration for the settlement of the debt. Pursuant to proposed paragraph 80(2)(g.1) of the Act, a corporate debtor is considered to have paid an amount equal to the increase in value of the shares of the capital stock of the debtor that are owned by the creditor (other than those shares issued as consideration for the settlement of the debt) to the extent that the increase in value is as a consequence of the settlement of the debt. ...

In exchange for their shares of XYCo, X receives only shares of Amalco and Y receives a nominal amount of shares of Amalco and non-share consideration. ... The provisions of subsection 87(4) of the Act will not apply to Y since Y received consideration other than shares of Amalco. ... In exchange for their shares of XYCo, X and Holdco receive only shares of Amalco and Y receives a nominal amount of shares of Amalco and non-share consideration. ...

You expressed the view that the foundation would, by virtue of subsection 149.1(12) of the Act, be deemed not to have acquired control of the corporation since it has not given any consideration for the shares. ... However, on the acquisition of the common shares by virtue of the conversion of the preferred shares to common shares, the foundation would be providing the preferred shares as consideration. ... Thus, the acquisition of control by a foundation of a corporation would not automatically result in the foundation's registration being revoked; however, it could very well lead to that result following consideration of the relevant facts. ...

No valuable consideration- no benefit of any kind- to the donor or to anyone designated by the donor may result from the payment. ... Since the contributor has received consideration in return for his contribution, no gift has been made. ... A donation of property to a registered charity is not a gift for the purposes of the Act if there is consideration of any kind being received in return. ...

In determining whether an individual expense is reasonable "in the circumstances" one would look to the amount sought to be deducted, the purpose of the expenditure, the nature of the expenditure, the similarity to and amount of other such expenses claimed, expenses of other employees or officers employed in a similar capacity, and so on, including consideration of any tax free allowances which may have been received where the allowance has been received for the purpose of defraying the type of expenditure which is being deducted. ... (Tax Appeal Board) 58 DTC 307, the Board considered as unreasonable a claim of $22,500 for advertising expenses incurred by a lumber company in sponsoring local sports events and reduced the deduction to $5,000, having given consideration to the size of the taxpayer's business, the patronage to be expected, the form of the advertising, the locality and the size of the population reached by the advertising. ... Having said that, however, where a member sought to deduct an expense for which a tax free allowance had been received and the purpose of the allowance was to defray that type of expense for which the member sought a deduction, the fact that a tax free allowance had been received would be taken into consideration in determining the "reasonableness" of the deduction. ...

As part of the consideration for the transfer, the corporation assumed the builder's holdbacks. ... You requested our opinion as to whether the builder's holdbacks (that were assumed by the corporation) would constitute non-share consideration given by the corporation to the builder with respect to the transfer under subsection 85(1). ... In our view, the fair market value of the builder's holdbacks at the time they were assumed should form part of the agreed amount with respect to the transfer, as such assumption by the corporation would constitute non-share consideration given by the corporation to the builder for the purposes of subsection 85(1). ...

Husband and Wife purchased 51 and 49 common shares, respectively, for nominal consideration, representing 100% of the issued share capital stock of Opco;- On January 1, 2003 the partnership transferred all of its assets to, and had all of its liabilities assumed by Opco. ... Husband and Wife purchase 51 and 49 common shares respectively for nominal consideration, representing 100% of the issued share capital of Newco;- On January 1, 2005, Husband sells his partnership interest to Newco. ... As consideration therefor, Husband takes back a note with a principal amount equal to the elected amount and receives redeemable, retractable preferred shares in Newco with a redemption amount equal to the excess of the fair market value of the partnership interest over the elected amount. ...