Search - consideration

., 76 DTC 6010, [1976] CTC 24 (FCTD)-- summary under Subsection 104(2) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(2) The taxpayer, in order to defer pursuant to s. 20(1)(n) the recognition of gain on the sale of land to the City of Calgary, agreed to sell the land to a trust company for cash consideration payable in eight years time. The trust company contemporaneously sold the land to the City for close to immediate consideration. ...

., 92 DTC 1531, [1992] 1 CTC 2355 (TCC)-- summary under Shares Summary Under Tax Topics- General Concepts- Fair Market Value- Shares The taxpayer acquired the personal residence of a related individual in consideration for issuing non-voting preference shares which were redeemable by the taxpayer but not retractable by the individual. ... Pierre Savoie [the individual], from recovering any value whatever in respect of the property transferred to [the taxpayer], since the redeeming of class G shares received in consideration could not have been obtained by a holder who did not have legal control, whether direct or indirect. ...

., 92 DTC 1531, [1992] 1 CTC 2355 (TCC)-- summary under Subsection 160(1) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1) The taxpayer acquired the personal residence of a related individual in consideration for issuing non-voting preference shares which were redeemable by the taxpayer but not retractable by the individual. ... Pierre Savoie [the individual], from recovering any value whatever in respect of the property transferred to [the taxpayer], since the redeeming of class G shares received in consideration could not have been obtained by a holder who did not have legal control, whether direct or indirect. ...

Noël J.A. stated (at p. 11-13) that: "A payment will be regarded as consideration if it is directly linked to the supply of a good or a service by the person who received the payment...." Words and Phrases consideration ...

The Queen, 90 DTC 6583, [1990] 2 CTC 493 (FCTD)-- summary under Subsection 97(2) Summary Under Tax Topics- Income Tax Act- Section 97- Subsection 97(2) capital distribution part of consideration for land contribution The taxpayer ("Haro") contributed real estate worth $1.9 million to a partnership and the other member ("B.C. ... Reed J. held that it would be artificial in the extreme to characterize the facts any other way than that Haro had received both a partnership interest and the cash payment as consideration for the transfer of the lands, with the result that the agreed amount in the subsection 97(2) election filed jointly by Haro and B.C. ...

In finding that the subscription fees were not zero-rated consideration, Sharlow J.A. quoted with approval a statement of the OECD Model Tax Convention on Income and Capital that: "Thus, in a transaction that in essence is an acquisition of data or images transmitted electronically, any incidental copying is merely the means by which the data is captured and stored. The essential consideration for the payment in that case is the data, not the use of the copyright, even though copyright is incidentally used. ...

In finding that the subscription fees were not zero-rated consideration, Sharlow J.A. quoted with approval a statement of the OECD Model Tax Convention on Income and Capital that: "Thus, in a transaction that in essence is an acquisition of data or images transmitted electronically, any incidental copying is merely the means by which the data is captured and stored. The essential consideration for the payment in that case is the data, not the use of the copyright, even though copyright is incidentally used. ...

The Queen, 2006 DTC 2376, 2006 TCC 44-- summary under Subsection 245(3) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(3) The taxpayer, who held 14.28% of the common shares of a Canadian private corporation ("Consercom") transferred a 9.76% block to a wholly-owned holding company ("6311") in consideration for preferred shares of 6311 with a high paid-up capital (thereby giving rise to a capital gain eligible for the capital gains exemption). The taxpayer also transferred shares of a Canadian private corporation ("Gestion") that he owned together with his brother to 6311 in consideration for shares of 6311. ...

Expense- Shareholder Assistance The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net of working capital, in consideration for advice provided in connection with considering alternatives to maximize shareholders' value, with an emphasis on merger possibilities. The transaction ultimately implemented entailed the taxpayer's shareholders selling their shares, pursuant to a plan of arrangement, to another publicly-traded oil and gas company in consideration for treasury shares of that purchaser. ...

The trial judge had dismissed the notes as hearsay, but the case was heard under the informal procedure, which only allows the dismissal of hearsay evidence after a consideration of whether it is sufficiently reliable and probative to justify its admission, taking into account the need for a fair and expeditious hearing (para. 14). The trial judge could not have made such a consideration as he had refused to even look at the evidence. ...