Search - consideration

Angers J found that for purposes s. 168(6) the consideration receivable bhy the appellans for their work did not become ascertainable for so long as a significant contractual dispute with Enbridge was resolved, stating (at para. 51) that: [A]lthough invoices may have been tendered to Exelon, the exact value of the consideration had not been determined prior to this second [settlement] agreement. The value of the consideration was in dispute from the time the requests for payment were made and the invoices were issued. It was therefore impossible to establish the tax owing until the exact amount of the consideration was ascertained, which is what the settlement agreement did. ...

Accordingly, s. 160 did not apply to the transfer in 3 above as full consideration was received. ... It is precisely “at the time” of transfer that the consideration proffered “at such time” was deficient …. Accordingly, there was a transfer of property for insufficient consideration to which s. 160 applied at the time of the set-off transaction. ...

In rejecting this submission and finding that s. 118.1(13)(a) deemed there to be no gift, Rossiter CJ stated (at paras. 46, 59): The consideration could not be both the Promissory Note and the corresponding cash payments. ... The only consideration received at the time of the disposition was the Promissory Note. … Parliament does not want to grant a tax credit where the donor is not impoverished and the charity is not enriched. ... Words and Phrases consideration receive payment ...

Archambault J. affirmed the Minister's position that the amount of these professional fees was "consideration" received by the taxpayer. ... Archambault J. stated (at para. 16): I accept the definition of consideration laid down in Currie and referred to by Judge Lamarre in Republic National Bank, above, and the definition in Black's Law Dictionary, according to which "consideration" can encompass "[t]he inducement to a contract... ... Words and Phrases consideration ...

In rejecting the taxpayer’s submission that she had provided full consideration for the transfer through her agreement to marry CC and care for him, Owen J stated (at paras. 82, 83): There is no evidence of a legally binding agreement between CC and the Appellant identifying marriage as consideration given by the Appellant for the Property, and there is no evidence of the fair market value of such a promise. A promise to marry that had already been fulfilled by the Appellant at the time of the Transfer cannot be consideration given by the Appellant for the Property at the time of the Transfer. … The Appellant continued to work outside the home after marrying CC and had no special training qualifying her to care for CC in a manner beyond the level of care that might be expected of any spouse. Further, there is no evidence of a legally binding agreement identifying future care of CC as consideration for the Property, and there is no evidence regarding the value of such future care. ...

La Reine, 2008 DTC 3787, 2007 TCC 206, aff'd 2008 DTC 2471, 2008 FCA 103-- summary under Canadian Manufacturing and Processing Profits Summary Under Tax Topics- Income Tax Act- Section 125.1- Subsection 125.1(3)- Canadian Manufacturing and Processing Profits transfer of waste material for no consideration received back other than assumption of environmental obligation was not a sale The taxpayer, who in consideration for a charge made by it to its customers, sorted, consolidated and reshipped industrial waste produced by them, in consideration for fees paid by them, was found to have under the Quebec Civil Code contracts for services with them rather than contracts of sale, so that it was not eligible for the allowance, given that the definition of sale in the Civil Code required that monetary consideration be received for a sale. ...

The taxpayer contended that she paid valuable consideration pursuant to a "deed of partition," dated 20 April 1989, to change the distribution of their property between them under the "change of matrimonial regime" provisions under the Civil Code. However, the house was transferred under a separate deed of sale dated 30 June 1988, under which the taxpayer was to pay $1 and "other good and valuable consideration."" In rejecting the taxpayer's contention, Angers J. found that: the deed of sale was not part of any matrimonial regime, given inter alia that it contained a provision that specifically denied that there was a matrimonial regime; the consideration was not fixed at the time of transfer; and no consideration was in fact paid, and no change in matrimonial regime took place. ...

The Queen, 2016 TCC 172, aff'd 2018 FCA 124-- summary under Paragraph 20(1)(e) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e) failure to advance evidence showing allocation of fees to share consideration The taxpayer (“Alcan”) incurred various investment dealer, legal and other fees in connection with its successful hostile bid for most of the shares of a French public company in consideration for cash and Alcan shares. After finding that Alcan had not sufficiently raised the issue of the deductibility of such expenses under s. 20(1)(e) in compliance with the large corporatin rules in s. 165(1.11), Hogan J went on to find that, in any event, there was an insufficient evidentiary basis for the deduction, stating (at para. 201): [T]he Appellant has offered no evidence to justify an allocation of the fees of the service providers (Morgan Stanley, Lazard Frères and Sullivan Cromwell) to the services required with respect to the share consideration and those required with respect to the non‑share consideration. ...

More precisely, the Manager agreed to relinquish its receipt of that X% of its fees, and the Funds agreed to pay the same percentage amounts to a special purpose non-resident Citibank-formed vehicle (“Funding Corp”) in consideration for Funding Corp paying the brokerage commissions. ... This turned principally on whether this consideration paid by the Funds to Funding Corp was tainted under para. ... Therefore, the consideration paid by the Funds to Funding Corp was tainted as Funding Corp was providing a management service- so that the fee amounts assigned by the Funds to Funding Corp. were consideration for a taxable imported supply. ...

The Queen, 2021 TCC 25, aff'd 2023 FCA 76-- summary under Section 11.1 Summary Under Tax Topics- Excise Tax Act- Schedules- Schedule VI- Part II- Section 11.1 orthodontic practices make two supplies of services and devices CRA disallowed ITCs claimed by one of the practices of orthodontist’s professional corporation on the basis that the patient invoices did not set out the consideration for the zero-rated supply of orthodontic appliances separately from the consideration for the exempt supply of orthodontic services. ... Wong J noted (at paras. 19-20): The Minister has an administrative arrangement with the Canadian Dental Association such that orthodontists may file their GST returns using 35% of the patient’s total treatment cost as an estimate of the consideration for the supply of the orthodontic appliance. When the actual figures become available (such as at year-end), orthodontists are then required to reconcile their 35% ITC estimate with their actual taxable supplies. … The arrangement also requires that the orthodontist identify the consideration for the zero-rated supply of the appliance separately from the consideration for the exempt supply of services. ...