Search - consideration

In this case, there is consideration payable for the supply of property. It does not matter that the consideration is not due when Mr. Zia signed the agreement. [29]         Mr. ... It is the person who is liable for the consideration that the definition of “ recipient ” seeks to determine. ...

An amount received by one person from another (e) in consideration or partial consideration for a covenant with reference to what the officer or employee is, or is not, to do before or after the termination of the employment. ... The conditional clause of the sale agreement was not a principal consideration of the contract. ... Although these considerations taken singly, may not be decisive, they do help to put the substance of the transaction into proper perspective. ...

If the first question is answered in the affirmative, was the transfer of the property made for a consideration less than the fair market value within the meaning of section 160 of the Act? ... Further, RENÉE MONETTE for good and valid consideration received hereby gives full and final release to her husband RICHARD GAMACHE for all monies which the latter owes or may owe her prior to that date. ... She further noted that the property was transferred at its fair value even without taking into account the consideration pertaining to the appellant’s patrimonial rights to the property, and certainly for value received if that consideration is included. ...

(xi) For the consideration aforesaid and in consideration of the sum of One ($1.00) Dollar now paid by Burgess to each of Brasso and Einar Christian Brasso and of other good and valuable consideration (receipt of ail of which is hereby acknowledged), Brasso and Einar Brasso each release and discharge Burgess and Burgess releases and discharges Brasso from all obligations that may be set out in or arise out of a certain Agreement dated the 12th of August 1970, a copy of which is attached hereto and marked "C" and they further agree that the said Agreement is revoked insofar as Burgess may be affected in any way by mutual consent and that Burgess has no further obligations thereunder save and except that pursuant to the terms set out in paragraph (vii) (d) thereof that Brasso may in his own name and on his own behalf and at his own expense purchase the insurance policy or policies on his said life set out in paragraph 2 of the said Agreement. ... NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of One ($1.00) Dollar, (the receipt of which is hereby acknowledged by Burgess and Brasso Datsun respectively), the Parties hereto agree as follows: 1. ... The respondent, in his Reply to Notnce of Appeal, relies on subsection 6(3) of the Income Tax Act which reads as follows: 6. (3) An amount received by one person from another (a) during a period while the payee was an officer of, or in the employment. of, the payer, or (b) on account or in lieu of payment of, or in satisfaction of, an obligation arising out of an agreement made by the payer with the payee immediately prior to, during or immediately after a period that the payee was an officer of, or in the employment of, the payer, shall be deemed, for the purposes of section 5, to be remuneration for the payee’s services rendered as an officer or during the period of employment, unless it is established that, irrespective of when the agreement, if any, under which the amount was received was made or the form or legal: effect thereof, it cannot reasonably be regarded as having been received (c) as consideration or partial consideration for accepting me office or entering into the contract of employment, (d) as remuneration or partial remuneration for services as an officer or under the contract of employment, or (e) in consideration or partial consideration for a covenant with reference to what the officer or employee is, or is not, to do before or after the termination of the employment. ...

The plaintiff’s position is that that entire amount was paid as consideration for the trucks. The defendant’s position is that only $57,722 was consideration for the trucks and that the: balance was consideration for something other than property. ... Where an amount can reasonably be regarded as being in part the consideration for the disposition of any property of a taxpayer and as being in part consideration for something else, the part of the amount that can reasonably be regarded as being the consideration for such disposition shall be deemed to be proceeds of disposition of that property irrespective of the form or legal effect of the contract or agreement; and the person to whom the property was disposed of shall be deemed to have acquired the property at the same part of that amount. ...

STATUTORY FRAMEWORK [6]            The relevant provisions of the Act [1] are: 167. (1) Supply of assets of business- Where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, and, under the agreement for the supply, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business, (a)            for the purposes of this Part, the supplier shall be deemed to have made a separate supply of each property and service that is supplied under the agreement for consideration equal to that part of the consideration for the supply of the business or part that can reasonably be attributed to that property or service; and (b)            except where the supplier is a registrant and the recipient is not a registrant, the supplier and the recipient may make a joint election in prescribed form containing prescribed information to have subsection (1.1) apply to those supplies. (1.1) Effect of Election- Where a supplier and a recipient make a joint election under subsection (1) in respect of a supply of a business or part of a business and the recipient, if a registrant, files the election with the Minister not later than the day on or before which the return under Division V is required to be filed for the recipient's first reporting period in which tax would, but for this subsection, have become payable in respect of the supply of any property or service made under the agreement for the supply of the business or part, or on such later day as the Minister may determine on application of the recipient, (a) no tax is payable in respect of a supply of any property or service made under the agreement other than (i) a taxable supply of a service that is to be rendered by the supplier, (ii) a taxable supply of property by way of lease, licence or similar arrangement, and (iii) where the recipient is not a registrant, a taxable supply by way of sale of real property; and (b) for the purposes of this Part, (i) where, but for this subsection, tax would have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient, and (ii) where, notwithstanding this subsection, tax would not have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities. 167.1 Goodwill- For the purposes of this Part, where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business, and part of the consideration for the supply can reasonably be attributed to goodwill of the business or part, that part of the consideration shall not be included in calculating the tax payable in respect of the supply. 123. (1) Definitions- In section 121, this Part and Schedules V to X,... "supplier", in respect of a supply, means the person making the supply; "supply" means, subject to sections 133 and 134, the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition; "property" means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money; "registrant" means a person who is registered, or who is required to be registered, under Subdivision d of Division V; "recipient" of a supply of property or a service means (a) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration, (b) where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and (c) where no consideration is payable for the supply, (i) in the case of a supply of property by way of sale, the person to whom the property is delivered or made available, (ii) in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and (iii) in the case of a supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply; "taxable supply" means a supply that is made in the course of a commercial activity; ANALYSIS I.               ... The Appellant submitted that a portion of the franchise fee was consideration for goodwill. ...

What is meant by valuable consideration? [14] Section 160 of the Act corresponds to the concept of the action de in rem verso against unjust enrichment. ... However, the imbalance between the patrimonies of the two individuals referred to by the writers means an absence of justification, and in the final analysis this absence of justification is, after all, only the absence of a prestation or consideration. In the case at bar, therefore, it is this concept of absence of a prestation or consideration by the bank which we must consider in determining whether this is a case of unjust enrichment. ...

In other words, the question to be answered is the following: was the amount of the dividend paid in consideration of the services rendered by Mr. ... I concur with him in this respect. [12] I would also add that when an employer pays money in consideration of services rendered by an employee it is salary. ... If the amount of $70,000 actually represented consideration for services rendered, that is, a salary, it would have been subject to a higher tax than if it were a dividend. ...

The first involves consideration for rental building management services given by the Appellant to its sole shareholder/owner of those rental buildings. ... On that basis, she established the consideration for management services, which is higher than what had been paid; the additional tax owing on these amounts was $ 1,794.39 ...   [17]     Subsection  155(1) of the Act reads as follows:   Non‑arm's length supplies   155.(1)   For the purposes of this Part, where a supply of property or a service is made between persons not dealing with each other at arm's length for no consideration or for consideration less than the fair market value of the property or service at the time the supply is made, and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,   (a)     if no consideration is paid for the supply, the supply shall be deemed to be made for consideration, paid at that time, of a value equal to the fair market value of the property or service at that time; and   (b)     if consideration is paid for the supply, the value of the consideration shall be deemed to be equal to the fair market value of the property or service at that time ...

Were the payments made by the appellant’s then husband transfers of property made without valuable consideration? ... What is meant by valuable consideration? Section 160 of the Act corresponds to the concept of the action de in rem verso against unjust enrichment. ... In the case at bar, therefore, it is this concept of absence of a prestation or consideration by the bank which we must consider in determining whether this is a case of unjust enrichment. ...