Search - consideration

The Queen, 2006 DTC 3006, 2006 TCC 256-- summary under Subsection 56(2) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(2) The taxpayer transferred assets of a business to a partnership in what was intended to be an s. 97(2) rollover transactions in consideration for cash, promissory notes and assumption of debt ("boot") totalling an amount less than the cost amount of the transferred assets, and a Class "F" partnership interest stipulated to have a value equal to the balance of the purchase price. ... In finding that s. 56(2) did not apply to deem the amounts paid by the Partnership for the preferred shares to be boot received by the taxpayer, Bonner J. noted that the Crown had admitted in the pleading that the total value of the (actual) boot and Class F units received by the taxpayer on the transfer of the business assets was equal to the price for which the business assets were sold to the partnership so that "there was no room for the additional consideration of which the Appellant is said to have diverted to Holdings". ...

Later, when Pepsi Co. purchased KFC, it was agreed that the agreement to receive the annual amounts would be cancelled in consideration for the payment to him of two lump sums of $67,000 and $300,000. Although the cancellation agreement provided that he and his wife were to provide consulting services, it was found as a fact that he received the two lump sums in consideration for the cancellation of the existing contracts and relationships and that, accordingly, the sums were received by him on capital account as proceeds of disposition pursuant to s. 54(c)(ii)(B). ...

In rejecting the Appellant’s submission that it “made, in consideration of the Annual Resort Fee, separate single supplies of services in respect of each Vacation Home,” D’Arcy J stated (at para. 259): It made a single supply by agreeing to use the Annual Resort Fee to fund its operations…with the consideration being based upon the Appellant’s total estimated costs. ...

The Queen, 2017 TCC 78, rev'd in part 2019 FCA 217-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply dominant element of service provided by financing SPV was financing The manager of various mutual funds (the “Funds”) agreed to relinquish its receipt of a portion of the management fees which it otherwise would have earned (calculated as a percentage of the net asset values from time to time of the funds) 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 that were payable on subscriptions by investors for units (or shares) of the Funds. ... Before going on to find that the amounts of the fees so assigned to Funding Corp were deemed by paragraph (q) of the “financial services” definition to be taxable consideration, V.A. ...

He further found that “there has been an evolution in the doctrine of consideration in the context of contract modifications,” so that now “when parties to a contract agree to vary its terms, the variation should be enforceable without fresh consideration, absent duress, unconscionability, or other public policy concerns” (para. 57). ...

He further found that charges made by DTI at the end of each trip to the drivers of $0.76 per mile for fuel, and $0.08 per mile for vehicular maintenance, were consideration for an on-supply by DTI to the drivers of fuel and maintenance services. In finding that such fuel and diesel supplies were not consideration for a zero-rated supply by DTI, Russell J noted that such supplies were not part of the “freight transportation service” (“FTS”) made by each driver to DTI (given that the recipients of the diesel and maintenance supplies (the drivers) differed from the recipient of the FTS (i.e., DTI). ...

The King, 2025 TCC 61-- summary under Evidence Summary Under Tax Topics- General Concepts- Evidence parol evidence could not be used to bifurcate a payment BC Hydro, which had entered into an electricity purchase agreement (EPA) with an independent power producer for the supply of electricity at a particular project in BC, agreed with that supplier that the EPA would be amended to provide, inter alia, that in consideration for the payment by BC Hydro of the sum of $8.5 million by the date 30 days after the project became operational, BC Hydro would have the option to extend the term of the EPA by a further 16 years. ... The Queen relied on such principles from Eli Lilly, stating that failing the finding of ambiguity in the document under consideration, it is not open to the Court to consider extrinsic evidence, furthermore, that even where there is ambiguity, evidence only of a party’s subjective intention is not admissible. ...

., under the WD Act) and thus came within the definition of consideration. He then stated (at para 119): Under paragraph (b) of the definition of recipient in subsection 123(1) of the GST Act, the MHS Stewards are deemed to be recipients of the supply since they were the persons who were liable to pay the consideration for the supply. ...

Before consideration of the "adventure" concept, the land was not inventory of a business. ... Furthermore, "a bona fide gift of land is not a transaction that can be described as being ‘in the nature of trade' if it is otherwise unconnected with a business" (para. 95), the deemed proceeds under s. 69(1)(c) could not be treated as consideration for this purpose (para. 103) and "the nature of the gift as a transfer of property for no consideration is not changed simply because there are favourable income tax consequences" (para. 101). ...

Hélie Holdco purchased 10.5% of the common shares of Amiante from Poulin for nominal consideration and purchased 388,861 Class D preferred shares from Turgeon for a purchase price of $388,861 in consideration for a note in that amount bearing interest at 4% and which was to be repaid out of 90% of the amounts received by Hélie Holdco from Amiante. ... In January 2014, Hélie Holdco transferred the balance of its Class D preferred shares to what now was the parent corporation of Amiante, without there being any evidence of consideration having been received for this transfer, and with the balance of the note remaining unpaid. ...