Search - consideration

The Queen, 2012 DTC 1019 [at at 2575], 2011 TCC 520-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition rebuttable presumption of resulting trust on transfer for no consideration Seeking to protect herself from being sued by her brother, the taxpayer transferred title to all her real properties for no consideration to corporations under her majority control. ... Hogan J. noted (para. 30) that "a transfer of property for no consideration generally results in a rebuttable presumption of a resulting trust". ...

After noting that, in the context of s. 14, "'consideration'... must be understood as the thing that the recipient of a payment gives in exchange for the payment", Sharlow J.A. found that the consideration given by the taxpayer for the $9 million payment was the release of any claim by it for compensation for the destruction of the goodwill of its business, and that under the mirror image rule the amount was not an eligible capital amount because the expropriation was effected for civic purposes rather than for the purposes of producing profit, and an expenditure made by the taxpayer for this purpose would not qualify as an eligible capital expenditure. Words and Phrases consideration ...

Harman J. found (p. 361) that): "The special commissioner was entirely entitled to reach the conclusion that there is no basis on which a separate and additional monetary value could be placed upon the guarantee as part of the consideration to be added to the undoubted monetary price paid which was the true open market price of the shares." and went on to find that the guarantee clearly fell within s. 22(4)(b) of the Finance Act 1965 which deemed the disposal of an asset to be for consideration equal to the market value of the asset where the asset was acquired "wholly or partly for a consideration that cannot be valued". ...

D’Arcy J found that the Annual Resort Fees were consideration for a service rather than intangible personal property, stating (paras. 237-8): The Appellant does not provide any rights in consideration of the Annual Resort Fee. … What it supplies is the agreement to use the Annual Resort Fees to fund its operations. … This…is the supply of something other than property. The Annual Resort Fees were "not part of the ongoing consideration the Members....pay to maintain their membership in the Appellant" given inter alia that the memberships were supplied by a different entities (the "Developers" who also had acquired occupancy rights to the Vacation Homes and had sold the Resort Points giving members the rights to book stays at the homes). ...

Lubbock Fine & Co. v Commissioners of Customs and Excise, [1993] EUECJ C-63/92, [1994] 3 All ER 705-- summary under Subsection 221(2) Summary Under Tax Topics- Excise Tax Act- Section 221- Subsection 221(2) tenant's surrender of leasehold qualified as a letting of immovable property A U.K. firm of chartered accountants received a lump sum from its landlord in consideration for surrendering the residue of a lease to the landlord. In finding that the surrender came within a VAT exemption for the “letting of immovable property,” the Court stated (at paras. 8-10): The essence of the first question put by the national court is whether the term "letting of immovable property" used in Article 13B(b) of the Sixth Directive to define an exempt transaction covers the case where a tenant, for consideration, surrenders his lease and returns the immovable property to his immediate landlord. Where a given transaction, such as the letting of immovable property, which would be taxed on the basis of the rents paid, falls within the scope of an exemption provided for by the Sixth Directive, a change in the contractual relationship, such as termination of the lease for consideration, must also be regarded as falling within the scope of that exemption. ...

The Agreement provided that the fees of AC were payable by CIBC “in consideration of AC referring or arranging for Aeroplan members and other members of the public to make Card Applications and in consideration of AC performing its other obligations herein which are incidental to the foregoing.” ... …[T]here is no evidence that CIBC would have been prepared to pay consideration to Aeroplan for any of the separate elements on their own, and Aeroplan issued invoices to CIBC in respect of its “participation in the Aeroplan Program” for each of CIBC’s credit cards, generally computed with reference to the number of Aeroplan Miles issued during the relevant billing period. ...

., 2021 SCC 49, [2021] 3 S.C.R. 590-- summary under Treaties Summary Under Tax Topics- Statutory Interpretation- Treaties additional consideration in Treaty context of giving effect to the contractual bargain Before considering whether the taxpayer’s use of a capital gains exemption provision in the Canada-Luxembourg Treaty was an abuse under s. 245(4) given that the taxpayer was a conduit corporation rather than a corporation that had a significant economic connection to Luxembourg, Côté J stated (at paras. 29, 35-6): Like all statutes, tax legislation must be interpreted by conducting a “textual, contextual and purposive analysis to find a meaning that is harmonious with the Act as a whole” …. ... One of the most important operational goals is the elimination of double taxation, where the same source of income is taxed by two or more states without any relief. … Another important consideration is the dual nature — contractual and statutory — of tax treaties. Consideration of the contractual element is crucial to the application of the GAAR because it focuses the analysis on whether the particular tax planning strategy is consistent with the compromises reached by the contracting states. ...

The Queen, 95 DTC 311, [1993] 2 CTC 3125 (TCC)-- summary under Subsection 80(1) Summary Under Tax Topics- Income Tax Act- Section 80- Subsection 80(1) promissory note enforceable A promissory note that the taxpayer had given as consideration for a limited partnership interest acquired by him was found to be a legally enforceable claim of the banks to which it had been assigned. Accordingly, the release of the taxpayer's obligations under the promissory note in consideration for the payment of a lower cash amount gave rise to the application of s. 80(1). ...

., Ltd. (1932), 17 TC 286 (KBD)-- summary under Subsection 10(1) Summary Under Tax Topics- Income Tax Act- Section 10- Subsection 10(1) allocation of part of purchase price to oil in the ground not respected The taxpayer purchased the oil wells, plant and equipment of its subsidiary in consideration for issuing shares having a value of £120,000. The agreement allocated £70,000 of the consideration to the oil in the wells which were purchased. ...

The Queen, [1995] GSTC 34 (TCC)-- summary under Subsection 153(2) Summary Under Tax Topics- Excise Tax Act- Section 153- Subsection 153(2) Lamarre TCJ. concluded that s. 153(2) did not have the effect of deeming a separate service fee charged by a co-operative retail outlet to its members to be consideration paid by them for zero-rated groceries. Instead, the provision "was designed as an anti-avoidance rule that applies where there has been an unreasonable apportionment of consideration as between two or more supplies" (p. 34-6). ...