Search - consideration

" In reaching this conclusion, the Court stated (at p. 6032): [A] gift is a voluntary transfer of property owned by a donor to a donee, in return for which no benefit or consideration flows to the donor. ...

., 2003 DTC 5471, 2002 FCA 422-- summary under Subsection 245(4) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(4) asset strip to affiliate before tax motivated sale at loss In order to realize an allowable business investment loss on its investment in a corporation ("DMI") held jointly by it and a third party ("Rexfor"), the taxpayer and Rexfor formed a new corporation ("DMI 1993") owned jointly by them, arranged for DMI to transfer all its assets and liabilities to DMI 1993 save for two sawmills worth $2.5 million and $2.5 million of debt owing to a third party, and then sold the shares of DMI to an unrelated third party for nominal consideration. ...

It was found that although the consulting and sales agency agreement had a term of only 1 year and the vendor was entitled to its commission regardless whether it participated in the sale of the 10 machines or not, there was nothing in the consulting and sales agency agreement which would "lead the reader thereof to conclude that its true nature was to provide [the vendor] with additional consideration for the sale of its assets. ...

JS then transferred his shares of PC to a newly-incorporated holding company ("601") in consideration for a promissory note of 601 in the same amount and for the issue of common shares. ...

The Trial Judge had incorrectly found that the taxpayer had not made the payment referred to in (2) above, and the matter was referred back to the Minister for reconsideration of the third and fourth points above, together with consideration as to whether the claim by the taxpayer in his return for a business investment loss represented an election under s. 50(1). ...

Robertson JA affirmed the Minister's opinion that the $50 "fines" were consideration for a taxable supply- the provision of parking services. ...

Dreyfus [1906] 1 KB 584 at 589) but would also include one who lends money on a regular and continuous basis over time to a limited group of borrowers for an arm's length consideration (see in particular the extended meaning of the word "business" in par. 248(1)). ...

In response to the taxpayers' submission that too much time had passed between the different transactions for them to be one series of transactions, Trudel JA noted (at paras. 17-19) that Copthorne indicated that sometimes the elapsed time would be a relevant factor in this determination, and that Boyle J had made a finding of fact that, at the time the decision was taken to pay a capital dividend, New Supervac had taken into consideration the capital dividend account that had been acquired with the Old Supervac shares. ...

., 2000 DTC 6549, docket A-500-98, 2002 FCA 226-- summary under Paragraph 12(1)(b) Summary Under Tax Topics- Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(b) right to receive amounts had become absolute The taxpayer, which was a real estate developer, agreed with each of three partnerships to construct and complete a MURB project and provide certain initial services essential to the project pursuant to a development agreement, including the provision of ongoing financial guarantees, in consideration for the partnership's promise to pay stipulated amounts to the taxpayer in instalments as evidenced by promissory notes and, in the case of two of the three projects, wrap-around mortgages. ...

In affirming the Tax Court reasons, Sharlow JA stated (at para. 6): [The connecting factors test] requires a complete consideration of all of the facts relating to the income, which must include but cannot be limited to the formal legal structure through which the income is received. ...