Ch. 35 - Non-Arms Length Transactions

Question 1

Related individuals

Answer 1

related by blood, marriage, common-law, adoption

Question 2

corporations are related to

Answer 2

1. a person who controls the corporation, if it’s controlled by one person
2. a person who is a member of a related group that controls the corporation
3. a person related to a person who (either 1. or 2. above)

Question 3

two corporations are related if:

Answer 3

1. they are controlled by the same person or group of persons
2. each of the corps is controlled by one person, and that person is related to the other person
3. one of the corps is controlled by one person, and that person is related to any member of a related group that controls the other corp
4. one corp is controlled by one person, and that person is related to each member of an unrelated group that controls the other corp
5. any member of a related group that controls one of the corporations is related to each memebr of an unrelated group that controls the other corp
6. each member of an unrelated group that controls one of the corporations is related to at least on memebr of an unrelated group that controls the other corporation

Question 4

Deemed proceeds and ACB

1. FMV
2. $Nil (Gift)
3. Over FMV
4. Less than FMV

Answer 4

1. Deemed proceeds = actual selling price; ACB = Actual selling price
2. Deemed proceeds = FMV; ACB = FMV
3. Deemed proceeds = Actual selling price; ACB = FMV
4. Deemed proceeds = FMV; ACB = Actual purchase price

Question 5

Income attribution on transferred property - occurs when

Answer 5

property is transferred to a spouse of common law partner, or to related individuals under 18

Question 6

income attribution on transferred property - what is attributed

1. income
2. gains

Answer 6

1. spouse - is attributed to transferor; minor - is attributed to transferor
2. spouse - is attributed to transferor; minor - not attributed to transferor