Search - consideration

Canada, 2018 FCA 209-- summary under Subsection 245(3) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(3) not each transaction in series effecting an estate freeze had that objective Prior to the sale of a corporation ("Groupe AST") to a third party, its individual shareholder (“Jobin”) transferred his shares of Groupe AST on a s. 85(1) rollover basis to a holding company (“276”), and then the adjusted cost base of the shares of Groupe AST was stepped up in the hands of 276 to fair market value through a combination of Groupe AST increasing the stated capital of its shares, thereby generating a s. 84(1) deemed dividend to the taxpayer which was reported by it as a capital gain under s. 55(2), and of 276 transferring the Groupe AST shares on a non-rollover basis to a Newco formed by Jobin (“9144”) in consideration for Class A common shares with a high ACB. ...

In finding that the premiums received by Applewood qualified for exemption as consideration for the arranging for the issuance of financial instruments (paras. ...

. … (1) they did not refer to prior sales of the property; (2) there is no reference to providence; (3) there was multiples of the same print bought and dated; (4) there was no reference to the price paid by the donors; (5) the use of the art was not considered; and (6) no consideration was given to the impact of the flooded market place. ...

Canada, 2019 FCA 57-- summary under Subsection 16(1) Summary Under Tax Topics- Income Tax Act- Section 16- Subsection 16(1) s. 16(1) can only apply to a debtor if it equally applies to the creditor As part of a complex set of transactions, a predecessor of the taxpayer agreed to assume a $225M loan that was due in perhaps 43-years’ time and that was non-interest-bearing (except in the remote event of oil production from the Beaufort Sea) in consideration inter alia for the payment to it of $17.5 million by the debtor. ...

The Tax Court (D’Arcy J) had found that, in fact, on the same day that the limited partnership acquired the permit rights from its general partner (“Kinderock”), it had transferred their beneficial ownership to Devonian (on an s. 85(2) rollover basis) in consideration for shares, so that its fleeting beneficial ownership of those assets did not qualify them as being used in a Canadian active business, as required under the s. 110.6(14)(f)(ii) test. ...

The “contextualist” approach, on the other hand, allows for the consideration of extrinsic evidence when there is latent ambiguity, thus making it possible for the factual matrix surrounding the contract at the time it was formed to be considered. ...

Rossiter CJ also found that there was an exchange of legal consideration, stating (at para. 132): Black’s direct advancement of funds to International on Inc.’s behalf is not a bar to a loan existing between Black and Inc. ...

Revenue and Customs v Fortyseven Park Street Ltd, [2019] EWCA Civ 849-- summary under Residential Complex Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Residential Complex users of time shares in complex with boutique-hotel level of service were using hotel or similar accommodation The owner of a property in Mayfair, London that had been converted into 49 residences, agreed with purchasers that, in consideration for a lump sum, each purchaser (a "member”) would have the right, after making a reservation, to use a residence of the particular quality level (1 to 5) for which they had paid, for up to 21 days a year during the term of approximately 50 years (plus for a further 14 nights on payment of a modest charge). ...

Similarly, he stated (at para. 55): [T]here is no doubt that broad expressions such as “taxable supply” and “commercial activity” … must be interpreted irrespective of considerations of lawfulness, public order or morality. ...

How can the plaintiff challenge the presumption of correctness of the notices of assessment where the 7.89% rate, considered to be reasonable and adopted by the defendant, falls within the range that its own expert considered to be a reasonable rate based on the current rates in the market for obligations with similar considerations and risks during the period in litigation? ...