Search - consideration

These amounts were found to be part of the taxable consideration for such home sales, with the result that Mattamy was found to have been understating the sales price to the purchasers. As the new housing rebates ("NHRs") of the purchasers (which they had assigned to Mattamy and which it had rebated to them as contemplated in s. 234(1)) increased as the sales price increased to $350,000, this increased taxable consideration increased the NHRs which could have been claimed on some of the sales. ...

In particular, it acted as agent of Farmers Mutual in arranging for Farmers Mutual to acquire the freehold mineral rights and interests as lessor of farmers, who had previously leased their mineral rights, in consideration for Farmers Mutual issuing treasury shares to the farmers. Where the farmers had not already leased their mineral rights, the taxpayer would itself enter into a lease (as lessee) with the farmers of the mineral rights, with the farmers then transferring their interests as lessors to Farmers Mutual in consideration for shares of Farmers Mutual. ...

MNR, 72 DTC 6232, [1972] CTC 265 (FCTD), briefly aff'd 74 DTC 6129 (FCA)-- summary under Subsection 6(3) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3) The taxpayer sold their shares pursuant to a deed of sale that provided that $150,000 was paid at the time of signing the deed of sale as the purchase price for their shares, and that a further $150,000 was payable in ten annual instalments in consideration for the sale by them of their right to engage in the bakery business and their right to use the name "Richstone" in relation to the business for a 25-year period. A further clause stipulated that further consideration for the ten $15,000 instalments was the vendor's covenant not to engage in the bakery business for 25 years within Quebec or Ontario and not to use the Richstone name for 25 years within that territory. ...

The Minister applied the single-supply doctrine to treat the entire amount as consideration for an interest in real property. ... Either way, the consideration paid for the deposit recoveries was not taxable. ...

In finding that this sum was a tax-free receipt, and in reversing a finding of the Tax Court Judge that it represented the value of consideration from a disposition pursuant to s. 7(1)(b), Malone J.A. stated that "a 'disposition' under paragraph 7(1)(b) refers to a transaction in which the taxpayer voluntarily agrees to exchange property rights that have accrued under an employee stock option agreement for some other consideration", and noted here that instead there had been a unilateral repudiation of the taxpayer's rights under the option agreement by the employer, and that such unilateral conduct constituted a fundamental breach of the contract that terminated it as of that date. ...

Lamarre J. found that the related fees paid by PC Bank to CIBC were consideration for arranging for financial services and, therefore, consideration for an exempt supply. ...

Profit- Rents The taxpayer, which had leased five properties to a related company, assigned the right to receive rents payable in respect of a period of five years and one day to a bank in consideration for a lump sum. ... He also was influenced by the consideration that if the taxpayer had granted the bank a six-year lease at nominal rents, the premiums payable would have been capital payments; and noted that the case was fundamentally different from the pre-payment by a tenant of a lump sum representing the discounted value of future rents payable by the tenant under a lease. ...

The Queen, 2003 DTC 951, 2003 TCC 494-- summary under Other Summary Under Tax Topics- General Concepts- Fair Market Value- Other The taxpayer assigned a commission of $3.9 million that was to be paid on a deferred basis by a limited partnership in consideration for the taxpayer having helped secure $49 million in equity capital that was to be invested (largely on as deferred basis) in the limited partnership, which was slated to purchase an office tower property approximately six months later, to a Cayman Islands corporation that was an indirect shareholder and with which it did not deal at arm's length, for cash consideration of $41,300. ...

The Queen, 2003 DTC 951, 2003 TCC 494-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) The taxpayer assigned a commission of $3.9 million that was to be paid on a deferred basis by a limited partnership in consideration for the taxpayer having helped secure $49 million in equity capital that was to be invested (largely on as deferred basis) in the limited partnership, which was slated to purchase an office tower property approximately six months later, to a Cayman Islands corporation that was an indirect shareholder and with which it did not deal at arm's length, for cash consideration of $41,300. ...

The Queen, 84 DTC 6073, [1984] CTC 92 (FCA)-- summary under Paragraph 7(1)(b) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(1)- Paragraph 7(1)(b) Prior to the effective date of an amalgamation squeeze out, the taxpayer agreed to surrender his unvested stock option rights in consideration for a cash payment from his employer equal to the accrued gain. ... In addition, s. 7(1)(b) was not found to be restricted to amounts received from a person other than the optioner/employer, and the words "otherwise disposed of" are "sufficiently broad as to include an amount received as consideration for the surrender of rights that are thereby extinguished. ...