Search - consideration

Further, since section 160 only gives the transferee credit for “consideration” paid to the transferor and since consideration only exists in contract law, neither the cash she gave her son nor any promise to do so necessarily constituted consideration. ... Gambino was consideration, it would not reduce her section 160 liability ...   [23]     With respect to the third requirement for consideration, it is the taxpayer’s position that if there was a transfer of property, sufficient consideration was given by the mother when she promptly did as asked in giving him the cash and in paying off his loan from her ...

It is submitted that the provision in the opening sentence of Schedule 3 to the effect that purchase price is to be determined in accordance with, inter alia, section 3.1 of the agreement is a further indication that Schedule 3 was intended to be determinative of the allocation of the entire consideration and not just the cash consideration since section 3.1 specifically provides for the assumption of liabilities as part of the consideration for the transaction. 11. ... These sections state at the outset that“as consideration for the purchased assets the buyer shall...deli ver the preliminary purchase price”. Later in section 3.1.1 we see“as further consideration buyer shall assume...the assumed liabilities”. ...

Subsections 231(1) and (3) read:   (1)        Bad debts- Where a person has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the person was dealing at arm’s length, to the extent that it is established that the consideration and tax payable in respect of the supply have become in whole or in part a bad debt, the person may, in determining the net tax for the person’s reporting period in which the bad debt is written off in the person’s books of account or for a subsequent reporting period, deduct, the amount determined by the formula                                                               B                                                     A x C   where   A         is the tax payable in respect of the supply,   B          is the total of the consideration, tax and any amount that can reasonably be attributed to a tax imposed under an Act of the legislature of a province that is a prescribed tax for the purposes of section 154 (referred to in this section as “applicable provincial tax”) remaining unpaid in respect of the supply that was written off as a bad debt, and   C         is the total of the consideration, tax and applicable provincial tax payable in respect of the supply,   provided the person reports the tax collectible in respect of the supply in the person’s return under this Division for the reporting period in which the tax became collectible and remits all net tax, if any, remittable as reported in that return ...   (3)        Recovery of bad debt – Where a person recovers all or part of a bad debt in respect of which the person has made a deduction under subsection (1) or (2), the person shall, in determining the net tax for the reporting period of the person in which the bad debt or part thereof is recovered, add the amount determined by the formula                                                               B                                                     A x C   where   A         is the amount of the bad debt recovered by the person;   B          is the tax payable in respect of the supply to which the bad debt relates; and   C         is the total of the consideration, tax and applicable provincial tax payable in respect of the supply ... First, it must be established that the consideration and tax payable in respect of the supply have become a bad debt either in whole or in part. ...

The question that remains is whether the fair market value of the house and cottage exceeded the consideration given by the appellant by at least the amount of $8,954.56 set out in the assessments under appeal, as contemplated in section 160 of the Act. ... Even assuming that the appellant did pay $5,000 towards the house and $10,000 towards the cottage, I am satisfied that, taking into consideration all of the circumstances of this appeal, including the testimony of the witnesses, the admissions and the documentary evidence, in the light of the applicable law and jurisprudence, the appellant has not succeeded in discharging her onus of establishing on a balance of probabilities that the Minister’s assessments were ill-founded in fact and in law. The appellant is liable for the amount of $8,954.56 pursuant to section 160 of the Income Tax Act, having failed to establish that the fair market value of the properties did not exceed the consideration given by her by at least the amount of $8,954.56. ...

The consideration for the latter agreements was to be an additional cash payment of $50,000 and a balance of $100,000 payable at $10,000 a year for 10 years. ... In the proposal accepted, the entire consideration for the shares, etc, was to be paid in cash rather than only one-third in cash and the rest on terms; and the consideration for the restrictive covenants was to be paid in ten equal instalments of $15,000 each with interest at 6% per annum rather than one-third in cash with the balance spread over ten years in equal annual instalments of $10,000 each, suggested in the earlier proposal. ... The appeal is therefore dismissed with costs. 1 *l have not overlooked the respondent’s contention that the onus is on the taxpayer to establish that the amounts received cannot reasonably be re garded as having been received in consideration or partial Consideration for the covenants not to compete. ...

The payment was made for personal service only and that conclusion really disposed of the matter as it was impossible to divide the consideration. ... The essence of the matter was the acquisition of services and the consideration was paid so that those services would be made available. ... The House of Lords held that so much of the payment as represented consideration for a reduction in salary was income and subject to tax, but that the consideration received by the taxpayer for commutation of his pension rights was not income. ...

The Court is far from rejecting hardship as a consideration relevant to H&C based applications. ... The more hardship there is the less other considerations must be present. Conversely the absence of hardship will require that the other considerations be much more acute. ...

Indeed, the consideration given and received for the disposition of depreciable property may, but need not, necessarily coincide with ‘‘fair market value”. In some cases the consideration may be less or more than fair market value according to the surrounding circumstances and the differing reasons which may have activated the buyer or the seller but in all cases, under Section 20(6) (g) of the Act, the consideration must be reasonable. ... This is my opinion is far below a reasonable consideration for these units. ...

On June 10, 1953 the Geneva board of directors allotted 39,997 common shares in its capital stock to William Mitchell for a consideration of five cents per share, an aggregate consideration of $1,999.85. ... Shankland estimates the consideration received by Geneva was equivalent to $3,000 per acre. 3. ... The reassessment will be remitted to the Minister for further consideration. ...

The Appellant rather contends that the Points were not the supply for which consideration was paid. ... The entire consideration I have been addressing is clearly consideration paid for the Points. ... The supplier must however remit both the tax payable on the portion of the consideration paid by the consumer and the tax payable on the portion of the consideration paid by the third party. ...