Search - consideration

“Proceeds” for purposes of computing its mining profits under the Mining Tax Act (Ontario) referenced: (a) consideration received from the output of a mine; (b) consideration from hedging; and (c) consideration from future sales or forward sales of the output of the mine That Act in relevant part defined “hedging” as including “the fixing of a price for output of a mine before delivery by means of a forward sale or a futures contract on a recognized commodity exchange.” (LeBel J noted, at para. 51, that in this context “’all consideration from hedging” must necessarily refer to a net concept.”) ... Words and Phrases consideration ...

., 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. ...

This arrangement was characterized as a release by her of all her claims for an allowance in consideration for a single consideration (the mortgage for $45,000) rather than as an agreement for the payment by him to her of a periodic allowance for maintenance. ...

“Proceeds” for purposes of computing its mining profits under the Mining Tax Act (Ontario) referenced: (a) consideration received from the output of a mine; (b) consideration from hedging; and (c) consideration from future sales or forward sales of the output of the mine That Act in relevant part defined “hedging” as including “the fixing of a price for output of a mine before delivery by means of a forward sale or a futures contract on a recognized commodity exchange.” ...

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. ...

The Court noted that "although we state in Stewart supra, at para. 55, that reasonable expectation of profit may be used as one factor in making the overall determination as to whether or not the taxpayer's activities are personal or commercial, where, as here, the activities have no personal aspect, reasonable expectation of profit does not arise for consideration."" In addition, "although the respondents in this case were clearly motivated by tax considerations when they purchased their interests in the Partnership, this does not detract from the commercial nature of the storage park operation or its characterization as a source of income.... ...

Profit- Real Estate intragroup outright sale followed by third party sales A husband and wife sold five farm properties in consideration for promissory notes and debentures to a newly-incorporated corporation owned beneficially by family members and certain charities, which then disposed of part of the lands at a gain four years later after having in the meantime earned significant forfeited option premiums with respect to various option agreements granted to third parties other than the ultimate purchasers. ... Alberni Land Co., Ltd. (1920), 7 T.C. 629 where, on somewhat similar facts, Rowlatt J had found (at 639) that "the company has done no more than to provide the machinery by which the private landowners were enabled... to properly realise the capital of the property they held in the lands," Judson J. stated (p. 5020): In none of these realization cases was there an out and out transfer by former owners for a cash consideration.... ...

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." ...

., 98 DTC 6297, [1998] 1 S.C.R. 770, [1998] 3 CTC 177-- summary under Subsection 56(2) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(2) inapplicable to dividends on discretionary shares paid to inactive spouse The taxpayer transferred his shares of a commercial real estate company to a newly-incorporated company ("Melru") in consideration for 1,285.714 Class G shares of Melru. ... After noting that the only relevant distinction with the facts in McClurg was that, here, the wife of the taxpayer had made no contribution to the corporation (other than paying the consideration for her shares), and before going on to find that s. 56(2) did not apply to attribute any portion of the dividend income to the taxpayer, Iacobucci C.J. stated (at p. 6304): "I am not aware of any principle of corporate law that requires in addition that a so-called 'legitimate contribution' be made by a shareholder to entitle him or her to dividend income and it is well accepted that tax law embraces corporate law principles unless such principles are specifically set aside by the taxing statute. ...

The predecessor of s. 78(1) accordingly did not apply to a non-arm's length sale of land inventory for a consideration to be paid over a 7-year period. ...