Search - consideration

W4N selling its intellectual property, goodwill and some of its other business assets to EMC for consideration including two “capital dividend” notes totaling $22 million (which were later distributed) and a “Balance Note” for $19.75 million. Souty and Virtuose selling special voting shares of W4N to EMC Canada for nominal consideration so as to effect an acquisition of control of W4N and a resulting year end. The balance of the shares of W4N now being sold directly, or through a sale of the balance of the Virtuose shares, for cash consideration of around $14 million. ...

Canada, 2008 DTC 6513, 2007 FCA 16-- summary under Subsection 6(3) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3) non-solicitation covenant taxable A lump sum received by the taxpayer, who was an investment advisor employed by a Canadian securities firm, on the termination of his employment was found to constitute consideration for his covenant (contained in the termination agreement) not to solicit clients given that "the non-solicitation covenant is at the heart of the termination agreement, which makes no mention of any sale of assets" (para. 16). ...

Canada, 2002 DTC 7061, 2002 FCA 212-- summary under Subsection 160(1) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1) The taxpayers had been unsuccessful in establishing an alleged connection between service rendered by them and dividends on shares held by them, so that it was not necessary to determine, for the purposes of section 160, whether the work presumably performed could constitute valuable consideration for the issuance of dividends. ...

The Queen, 84 DTC 6526, [1984] CTC 536 (FCA)-- summary under Old Summary Under Tax Topics- Income Tax Act- Section 245- Old "[W]here provisions of the Income Tax Act have the obvious purpose of encouraging taxpayers to enter into an expenditure of a particular kind [here, petroleum exploration expenditures], a taxpayer who otherwise falls within the object and spirit of the relevant provisions cannot be said to unduly or artificially reduce income because he was influenced to enter into it by tax considerations." ...

Canada, 2002 DTC 7463, 2002 FCA 380-- summary under Subsection 160(1) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1) The Court rejected a submission that a payment of the salary of the taxpayer's husband directly to her bank account was a transfer for consideration because it was made in satisfaction of his lawful obligation to support her to the level of her accustomed standard of living under s. 30 of the Family Law Act (Ontario). ...

The Queen, [2003] DTC 5009 (FCA)-- summary under Evidence Summary Under Tax Topics- General Concepts- Evidence In finding that the trial judge did not err in finding that shares received by the taxpayer pursuant to a corporate resolution that stated such shares were received in consideration for professional services rendered to the corporation, were income to the taxpayer, Noël J.A. stated (at p. 5009) that the taxpayer "Could not repudiate the resolution he signed himself in the absence of clear and compelling evidence. ...

., 82 DTC 6268, [1982] CTC 314 (FCA)-- summary under Cumulative Eligible Capital Summary Under Tax Topics- Income Tax Act- Section 14- Subsection 14(5)- Cumulative Eligible Capital Where the consideration for sale of goodwill is to be paid to the vendor over a series of years, then 1/2 of the amounts so paid are included as eligible capital amounts in computing the vendor's income in the years of payment as opposed to the earlier year of sale: in the year of sale, the amounts to be paid in subsequent years were not then "payable". ...

Canada, 2007 DTC 5559, 2007 FCA 293-- summary under Legal and other Professional Fees Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Legal and other Professional Fees The taxpayer earned his living as a prospector by staking claims and obtaining leases and selling them to mining companies for cash and other consideration, often shares of the companies. ...

The Queen, 79 DTC 5474, [1980] CTC 1, 79 DTC 5479 (FCA)-- summary under Paragraph 69(1)(c) Summary Under Tax Topics- Income Tax Act- Section 69- Subsection 69(1)- Paragraph 69(1)(c) The donation of services, such as farming labour, by members of a Hutterite religious colony to their corporation did not constitute an acquisition of property by the corporation, nor did it constitute a gift since there was consideration for the provision of those services in the form of a covenant of the corporation (as set out in its memorandum of association) to support, maintain, instruct and educate the members of the colony. ...

., 98 DTC 6275, [1998] 3 CTC 115 (FCA)-- summary under Subsection 79(2) Summary Under Tax Topics- Income Tax Act- Section 79- Subsection 79(2) The transfer by the taxpayer to his sister and former wife of his interest in two buildings in consideration for a reduction in the amount he owed to them was found to be a disposition whose proceeds of disposition were determined in accordance with s. 54(h)(i) (i.e., the "sale price of property that has been sold"), rather than by para. ...