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The Queen, 2012 DTC 1019 [at at 2575], 2011 TCC 520-- summary under Subsection 104(1) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(1) bare trust arising on creditor-proofing transfer 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". ...

The Queen, 2006 DTC 3006, 2006 TCC 256-- summary under Subsection 56(2) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(2) The taxpayer transferred assets of a business to a partnership in what was intended to be an s. 97(2) rollover transactions in consideration for cash, promissory notes and assumption of debt ("boot") totalling an amount less than the cost amount of the transferred assets, and a Class "F" partnership interest stipulated to have a value equal to the balance of the purchase price. ... In finding that s. 56(2) did not apply to deem the amounts paid by the Partnership for the preferred shares to be boot received by the taxpayer, Bonner J. noted that the Crown had admitted in the pleading that the total value of the (actual) boot and Class F units received by the taxpayer on the transfer of the business assets was equal to the price for which the business assets were sold to the partnership so that "there was no room for the additional consideration of which the Appellant is said to have diverted to Holdings". ...

The agreement between the shareholder and the taxpayer pursuant to which the payment was made indicated that the sum was paid "in consideration of the loss of pension rights, chances for advancement and opportunities for re-employment in the oil industry, consequent upon the resignation of the [taxpayer] from his present position with Imperial Oil". ... However, the payment of $250,000 was made for personal service only and that conclusion really disposes of the matter as it is impossible to divide the consideration." ...

The Court first found that the transfer in fact qualified for this exemption as QL should be regarded as having issued one common share to 1006 (in consideration for the transfer to it of intangible personal property) immediately before the transfer to it of the tangible personal property (in consideration for the issue by QL to 1006 of special Class A shares.) ...

The payment "was primarily motivated by considerations extraneous to the employment, namely public and labour relations considerations". ...

MNR, 65 DTC 5138, [1965] CTC 225 (Ex Ct), briefly aff'd 67 DTC 5196 (SCC)-- summary under Paragraph 20(1)(e) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e) In connection with a rights offering the taxpayer, in addition to paying a commission to the underwriters in consideration for their services as dealers in securities, paid a fee for their services rendered in forming and managing a soliciting dealers group and in consideration for their agreement to maintain an orderly market, and paid a further fee which was alleged to be for the administrative and clerical services of the dealers in processing the rights tendered by shareholders, but which was described in the relevant agreement as a commission for each common share which a soliciting dealer procured. ...

After noting (at para. 22) that "subsection 160(1) categorizes a transfer to a trust as a transfer of property", Sexton J.A. went on to note (at para. 27) that "it is clear that the transaction between Ms Davies and the respondent left Ms Davies without anything equivalent to the property transferred that could be collected by the CRA, and thus there could not possibly be consideration". Although "forbearance- the act of refraining from enforcing a right, obligation, or debt- can act as consideration for a promise given in return... there is no legal forbearance in this case. ...

In finding that the $233,786 was a deemed dividend received by the taxpayer by operation of s. 84.1(1)(b), Archambault J. noted that the subsequent sale to the outside party clearly established a fair market value of approximately $2.8 million for the shares, and that it would be very strange for the taxpayer to have disposed of the shares for the lowered price if it had not also received the benefit of the fee payments as additional consideration (TCC para. 14). In the Court of Appeal, Noël JA noted the taxpayer's argument that the Minister was statute-barred from applying s. 69(1)(b) to deem the sale of the shares of the numbered company to have been made for the shares' fair market value of $2.8 million, stating (at FCA para. 17): [I]t was neither necessary nor useful to rely on paragraph 69(1)(b), since the value of this consideration tallies with the price at which the shares were sold by [the numbered company] as part of the arm's length transaction that took place the same day and is therefore their fair market value. ...

Profit- Copyright The taxpayer, who was a professor of mathematics at Laval University, assigned the copyright in four textbooks that he had translated or written to the University (which was also a publisher) in consideration for future royalties. At a later date, he assigned all his rights under these contracts to the University in consideration for the lump sum of $75,000. ...

Cl. 314, 82-1 U.S.TC P9301 (1982)-- summary under Non-Business-Income Tax Summary Under Tax Topics- Income Tax Act- Section 126- Subsection 126(7)- Non-Business-Income Tax In finding that the taxes imposed under the Mining Tax Act (Ontario) (the "OMT") on an open pit iron ore mine did not constitute "any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country" for purposes of s. 901(b)(1) of the Internal Revenue Code, the Court stated: "The key to creditability is not that a particular class of net profit, reached by an accounting procedure that may be acceptable or justified for other considerations, is taxed; to be creditable, the net profit subject to foreign tax must be analogous to the type of net profit reached by the United States income tax. ... For instance, the non-deductibility of land expenses, rent, and private royalties- all or a large part of each of which mirrorimportant costs of mining production- removed from the consideration of the OMT crucial expenses that are normally incurred in the mining business, significant expenses which may well offset any gain the company could make from mining. ...