Search - consideration

Nonis’ remuneration to be from employment exercised in Canada than the days of actual exercise, he contrasted s. 115(2)(c.1)(ii) with s. 115(2)(c.1)(i) as follows (at para. 70): Subparagraph 115(2)(c.1)(i) is intended to cover amounts received as consideration or partial consideration for entering into a (or forbearing another’s) contract of service, or for entering into an agreement to perform a service where any such service or part is to be performed in Canada. While (i) covers consideration for "“entering”" into a contract or agreement, (ii) prevents non-capture where a signing bonus is represented as something else. ...

HLL transferred its Newco Class D preference shares on a s. 85(1) rollover basis to a newly-incorporated subsidiary (Newco 2) in consideration for Class A common shares of Newco 2 (having a deemed cost under s. 85(1)(h) of $3.47M.) ... The taxpayer transferred its shares of RTI (with an FMV of $7.05M) on a s. 85(1) rollover basis to a newly-incorporated subsidiary (Newco 3) in consideration for Class A common shares of Newco 3 (having a cost under s. 85(1)(h) of $0.50M.) ... HLL transferred its Class A common shares of Newco 2 (reported as having an ACB of $4.48M) on a s. 85(1) rollover basis to a special-purpose wholly-owned subsidiary of HLL (HLAL) in consideration for Class A common shares of HLA. ...

The Queen, 2015 DTC 1141 [at at 908], 2015 TCC 146-- summary under Compensation Payments Summary Under Tax Topics- Income Tax Act- Section 9- Compensation Payments payments received in consideration for reducing lease payments were compensation for lost lease income, and s. 9 income Leases by the taxpayer ("GMAC") to GM dealership customers stipulated a "residual value" at which the customer could purchase the vehicle at lease termination. General Motors of Canada Limited ("GMC") would make "residual value support payments" to GMAC in consideration for GMAC increasing the residual values (thereby reducing lease payments). ...

MFT then sold these preferred shares to McClarty in consideration for a demand promissory note of $48,000. McClarty then sold these preferred shares to a corporation ("101 SK") of which he was the sole shareholder and director in consideration for a $48,000 demand promissory note, which 101 SK then repaid out of cash proceeds received by it on the redemption of the preferred shares. ...

Regarding the criterion in s. 181(3) that a coupon be for a fixed dollar amount, he stated (at para. 35): In this day and age of electronic commerce and the use of purchase and sale devices not contemplated 20 years ago, I am of the view that where the fixed amount is clearly known to both sides, and is evidenced in writing, as hard copy or electronically, that can be offered by a customer as partial consideration, the requirement has been met. ... A further arrangement under which customers who purchased TM phones (generally from third-party stores) received coupons, mailed them in to a TM agent, and received a rebate cheque from the agent also did not entitle TM to input tax credits under s. 181(3)(b) as the coupons were not accepted by the supplier of the phones (the third parties) and also because the coupons were not accepted by TM "as consideration for anything" but rather were a rebate ("money that is paid back" (para. 58). ...

The Province then breached terms of the building lease and, in the subsequent settlement agreement, the parties agreed that the Province owed $2.4 million to Armour and that Armour, in consideration for $2.4 million to be paid by way of set-off, would be granted an irrevocable option to acquire the Province’s freehold interest (with the ground lease being terminated). ... Armour took the position that the $2.24 million paid by it was fully deductible as consideration for the ground lease termination. ...

After that date, certain transfers of property that were made without donative intent may still qualify as gifts despite the receipt of consideration by the transferor for the transfer, provided that the consideration received does not exceed 80% of the fair market value of the property that is transferred. ...

Gillis transferred the property on a s. 85(1) rollover basis to a newly-incorporated corporation (“Tri-Holdings”) in consideration for the assumption of a portion of the mortgage on the property and for the issuance of four common shares (representing all the Tri-Holdings’ shares) with a nominal paid-up capital (“PUC”). ... Gillis then transferred those shares on a s. 85(1) rollover basis to a newly-incorporated holding company (“468”) in consideration for shares of 468 with a nominal PUC. ...

The King, 2023 TCC 93-- summary under Subsection 141.01(4) Summary Under Tax Topics- Excise Tax Act- Section 141.01- Subsection 141.01(4) Amex did not make “free” supplies of rewards to credit card holders but instead were made for consideration and for the purpose of facilitating its exempt credit card business The Minister denied the input tax credit (“ITC”) claims of Amex Bank of Canada’s (“Amex”) for its 2002 to 2012 taxations years for GST/HST paid on expenses arising in connection with the administration and operation of Amex’s Membership Rewards Program (“MRP”), including expenses incurred for the purpose of providing its cardholders who were members of the MRP (“Members”) with rewards on the redemption of points earned by them mostly through making purchases on their cards. ... Amex submitted that the free supply rule in s. 141.01(4) applied to characterize the supply of rewards as a taxable supply, on the basis that (i) the supply of rewards to Members was made for no consideration, and (ii) the purpose of making such supply was to facilitate the activities of the Members. ...

The Queen, 2007 DTC 247, 2006 TCC 681 (Informal Procedure), aff'd 2008 FCA 128-- summary under Subsection 143.2(7) Summary Under Tax Topics- Income Tax Act- Section 143.2- Subsection 143.2(7) A partnership ("ICON") of which the taxpayer became a limited partner purchased software from a subsidiary ("Trafalgar Capital") of the developer of the software in consideration for cash (as to 30% of the purchase price) and a promissory note (for the balance), with the taxpayer then assuming a portion of the promissory note as part consideration for his units in ICON. ...