Search - considered

The reader should, therefore, consider such comments in light of the relevant provisions of the law in force for the particular tax year being considered. Table of contents Discussion and interpretation Conditions for the application of subsection 85.1(1) Limitations to the application of subsection 85.1(1) Tax consequences to the vendor Tax consequences to the purchaser Computation of paid-up capital Preservation of a tax-free zone Application Reference History Discussion and interpretation Conditions for the application of subsection 85.1(1) 1.1 Subsection 85.1(1) applies where a taxpayer (vendor) who holds shares (exchanged shares) in a corporation (acquired corporation) exchanges them for shares in the capital stock of a purchasing corporation (purchaser). 1.2 In order for the conditions in subsection 85.1(1) to be satisfied: the purchaser must be a Canadian corporation, as defined in subsection 89(1); the vendor must hold the exchanged shares as capital property; the exchanged shares must be shares of the capital stock of a taxable Canadian corporation, as defined in subsection 89(1); and the consideration received by the vendor on the exchange must be newly issued shares of one class from the treasury of the purchaser and cannot consist of stock options, income bonds, debentures or any other non-share consideration. 1.3 A partnership is generally considered to be a taxpayer for the purposes of subsection 85.1(1). 1.4 For share exchanges that occur after June 30, 2005, subsection 85.1(2.2) deems certain share issues made by the purchaser to be made to the vendor when they are in fact made to a trust under a court-approved plan of arrangement. ...

In general, the new corporation formed on a qualifying amalgamation is considered to be a continuation of the predecessor corporations for most purposes of the Act. ... The reader should, therefore, consider the chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... Resource expense pools 1.55 In an amalgamation to which section 87 applies, resource properties are considered to become property of the new corporation and no disposition occurs. ...

The reader should, therefore, consider the chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... In addition, any amounts that are included in income pursuant to paragraphs 12(1)(a) or (b) would also be considered gross revenue for purposes of Part IV of the Regulations. ... Partnerships and members 2.71 Each member of a partnership is considered to have a permanent establishment in the province(s) in which the partnership has a permanent establishment. ...

The reader should, therefore, consider the Chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... Although Marc does not own any shares of the corporation on Day 4 when the dividend is paid, Marc will be considered to have received a capital dividend. ... However, when such dividend is subject to the application of subsection 55(2), it is considered that a deduction under subsection 112(1) was not permitted in respect of that dividend and there is no denied increase in cost under subparagraph 53(1)(b)(ii). 1.30.1 Where a dividend that is deductible under subsection 112(1) results from the receipt of a stock dividend, subclause 52(3)(a)(ii)(A)(II) prevents what may be described as the non-safe income portion of the dividend being added to the cost of the stock dividend share. ...

The reader should, therefore, consider the chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... However, a property will be considered to have been used where the vendor has used it regularly for demonstration purposes. 2.15 An eligible property must satisfy all the conditions for inclusion in Class 43.1 or 43.2 on an annual basis. ... Such property is considered to be operated in the required manner during a period of deficiency, failure or shutdown of the system that is beyond the taxpayer’s control if the taxpayer makes all reasonable efforts to rectify the problem within a reasonable time. ...

The reader should, therefore, consider the Chapter's information in light of the relevant provisions of the law in force for the particular tax year being considered. ... In any other case, the portion of the fair market value of the debt that can reasonably be considered to relate to the principal amount of the debt. ... Anti-avoidance 1.67 Section 261 has two anti-avoidance rules that need to be considered for certain related party transactions. ...

The reader should, therefore, consider the Chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... Subsection 118.4(2) describes the requirements for a person to be considered a medical practitioner for purposes of sections 63, 64, 118.2, 118.3 and 118.6. ...

The reader should, therefore, consider the Chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... Such a trust will be considered a trust created by the taxpayer’s will and thus may qualify as a spousal trust if other conditions are met. ... Transfer or distribution as a consequence of death 1.16 By virtue of subsection 248(8), a property is considered to have been transferred or distributed to, or acquired by, a spouse, common-law partner, or spouse trust as a consequence of a taxpayer’s death when the transfer, distribution or acquisition was: under, or as a consequence of, the terms of the will or other testamentary instrument of the taxpayer, as a consequence of the law governing the intestacy of the taxpayer, or as a consequence of a disclaimer, release or surrender (see ¶1.17) by a beneficiary under the will or other testamentary instrument or on the intestacy of the taxpayer. 1.17 Subsection 248(9) describes a disclaimer and release or surrender for the purposes of subsection 248(8). ...

The reader should, therefore, consider the Chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. ... For example, penalties charged by a health and welfare trust for the late remittance of employer contributions would be considered incidental income. ...