Search - consideration

No mention is made in the agreement of any consideration for the termination of the distributor agreement but it does contain a provision whereby the respondent acknowledges that it has no claim of any kind against Volkswagen in respect of the termination of the Volkswagen distributor agreement dated February 22, 1957. ... Was the payment in consideration of the surrender or sale of the distributor franchise, was it a gratuitous payment for past services or, alternatively, was it a payment in lieu of anticipated profits? ... The relevant considerations in making such a characterization are, it seems to me, concisely stated by Lord Russell in Commissioners of Internal Revenue v Fleming & Co (Machinery) Limited, 33 TC 57, a decision of the Court of Session of Scotland wherein at page 63 he States: The sum received by a commercial firm as compensation for the loss Sustained by the cancellation of a trading contract or the premature termination of an agency agreement may in the recipient’s hands be regarded either as a capital receipt or as a trading receipt forming part of the trading profit. ...

Nearly four months previously, on July 28, 1965 an agreement had. been entered into in the form of an offer made by Mr Perrault to acquire the 193 common shares of Montreal Terra Cotta Limited held by Central Motor Sales Ltd which offer read as follows (translated): I, the undersigned, offer to become the purchaser of the 193 shares of Montreal Terra Cotta Limited held by Central Motor Sales Co Ltd for $1.00 and other valuable considerations. As a consideration, if my offer is accepted, I undertake to have paid to Central Motor Sales Co Ltd the sum of $350,000 after which the 193 shares of Montreal Terra Cotta Limited shall be delivered to me duly endorsed.-. ... Some consideration must therefore be given to the question of whether, in fact, any benefit resulted which would render plaintiff taxable on same under subsection 16(1) of the Act. ...

[3] provided that premiums or like consideration “demanded and given in connection with leasehold estates” should, as the case may be, either be included in or deductible from taxable income, to adopt Canadian terminology. The High Court of Australia has held that consideration for local goodwill was paid and received “in connection with leasehold estates” in sales of going concerns where the vendor granted a lease of the subject premises.! ... The aggregate sum realized was insufficient to satisfy the debt secured and it was sought to apportion the consideration and to pay the mortgagee only that part attributable to the unexpired term. ...

The purpose test may be an objective one, but a taxpayer's intention is certainly a relevant consideration (see Ludco Enterprises Ltd. v. ... Within this framework, policy considerations and the requirements of fact-finding can be weighed and balanced on the basis of their relative importance in each case. ... The balancing of the injury to the relationship against the benefit of the correct disposal of the matter involves purely public policy considerations. ...

Netolitzky's decision had been influenced by personal rather than purely business considerations. ... Justice Rothstein cautioned in Rich, supra at paragraph 14:   While future prospects of the debtor company may be relevant in some cases, the predominant considerations would normally be past and present. ... If future considerations are only speculative, they would not be material in an assessment of whether a past due debt is collectible.   ...

On December 24, 1974, MDC filed a notice of appeal from this judgment but meanwhile an agreement was entered into between plaintiff and MDC whereby MDC agreed to pay the amount found due by the judgment with interest making a total of $6,072,595 immediately in consideration of plaintiff agreeing to refrain from execution proceedings, to repay any amounts as might be deducted from the judgment by the Manitoba Court of Appeal, and a guarantee in the amount of $1,500,000 by Guy F Atkinson Company, an American corporation being the sole shareholder of the plaintiff. ... In his acceptance of this, together with the footnotes, he did not take Justice Dickson’s reasons for judgment into consideration and, in fact, did not learn of them until later. ... In the circumstances of that case it was held that the sums there in question had been paid outright to the Association as part of the consideration for the services it rendered; no question of a deposit arose. ...

" This is not, in my opinion, descriptive of the transactions involving letters of credit hat are under consideration in this appeal. ... Considerations In 1983 Fobasco purchased shares for cancellation, in 1984 and 1987 the company reduced its stated capital and in 1989 Fobasco redeemed preferred shares. ... Social Expenses: Submissions and Considerations Counsel for David relied on the Tax Appeal Board decision in Roebuck v. ...

That discretion involved a consideration of whether the evidence before him met the standards contained in paragraphs (a), (b) and (c) of subsection 231.3(3). ... No analysis related to the validity of a facially valid warrant can be immune from a consideration of the practicalities of drawing an information on the basis of which the issue of a warrant is sought. ... Assuming that there is a principle of investigative necessity that could be invoked in this case, a consideration of the effect of that principle cannot be divorced from such special statutory provisions as may be applicable. ...

As a part of the transaction, though not of the formal contract, a further consideration for the commitment was given by the transfer by the principal shareholder of the respondent to Traders of 5% of the issued shares of the respondent for the total sum of $5. ... However, the question in that case was not whether the amounts under consideration were bonuses but whether they were of a capital or of an income nature and for that reason I do not find the judgment helpful in the present situation. ... It does not in my opinion connote an amount of the kind in issue here; that is to say, an amount that is to be paid whether or not money is borrowed from the person who is to receive the amount, without reference or relation to any principal sum or any interest to be paid thereon and which is not in any sense a payment for the use of the money to be borrowed but simply a part of the consideration for a commitment to lend money on certain terms when and if called upon to do so. ...

(There were also some comments by the House of Lords and the courts below as to the fiscal years where the amounts of forgiveness should be taken into consideration but it was not pertinent to the ratio decidendi of that decision. ... In deciding upon the meaning of income, the Courts are faced with practical considerations which do not concern the pure theorist seeking to arrive at some definition of that term, and where it has to be ascertained for taxation purposes, whether a gain is to be classified as an income gain or a capital gain, the determination of that question must depend in large measure upon the particular facts of the particular case. ... It must be answered having regard to the facts of the particular case and the weight which must be given to a particular circumstance must depend upon practical considerations. ...