Search - consideration

It was held that "each of the four shareholders was entitled to the $1,000.00 actually paid to him by the company either because the 96 shares issued to the appellant as part of the consideration for the partnership property were held by the appellant on a resulting trust for the members of the partnership in equal shares, or because the agreement between them called for them to have equal equity shareholdings in the company and to share equally in any divisions of the profits of the company". ...

Canada, 2009 DTC 5940, 2008 FCA 419-- summary under Cumulative Eligible Capital Summary Under Tax Topics- Income Tax Act- Section 14- Subsection 14(5)- Cumulative Eligible Capital A lump sum received by the taxpayer in consideration for the cancellation of a non-competition agreement that it previously had received in connection with an acquisition of a business as a going concern represented proceeds of "disposition" on general principles given that the agreement was extinguished, and also was received on capital account given that (from the perspective of the taxpayer) an acquisition of a non-competition agreement in connection with its business would have been on capital account. ...

However, it is common ground that the substitution of the new RMC shares for the old ones was deemed by section 86 to be a disposition of the old shares in consideration for the new ones. ...

However, it is common ground that the substitution of the new RMC shares for the old ones was deemed by section 86 to be a disposition of the old shares in consideration for the new ones. ...

"[T]he appellant has parted with the possession of the heaters in consideration of a monthly rental and it has no capital asset that has been improved or created by the expenditure of the installation costs... ...

Miller J below that a lump sum payment received by the taxpayer from the sole tenant of its building in consideration for the termination of the lease was received on income account. ...

Parsons, 84 DTC 6447, [1984] C.T.C 354, 84 DTC 6452 (FCA)-- summary under Sham Summary Under Tax Topics- General Concepts- Sham no sham as purported legal rights were created It was found by the trial judge that management companies, which two professional engineers ("Parsons" and "Vivian") had incorporated and interposed between themselves and an engineering firm ("Design") of which they had been employees until that time, "(1) had no bona fide business purpose, (2) had, primarily, the purpose of directly reducing their income tax liabilities [and] (3) had, secondarily, an estate planning purpose which... must be taken to have also been solely motivated by tax and personal, not business, considerations." ...

Parsons, 84 DTC 6447, [1984] C.T.C 354, 84 DTC 6452 (FCA)-- summary under Tax Avoidance Summary Under Tax Topics- General Concepts- Tax Avoidance no sham as purported legal rights were created It was found by the trial judge that management companies, which two professional engineers ("Parsons" and "Vivian") had incorporated and interposed between themselves and an engineering firm ("Design") of which they had been employees until that time, "(1) had no bona fide business purpose, (2) had, primarily, the purpose of directly reducing their income tax liabilities [and] (3) had, secondarily, an estate planning purpose which... must be taken to have also been solely motivated by tax and personal, not business, considerations." ...

Parsons, 84 DTC 6447, [1984] C.T.C 354, 84 DTC 6452 (FCA)-- summary under Related Companies Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Related Companies It was found by the trial judge that management companies, which two professional engineers ("Parsons" and "Vivian") had incorporated and interposed between themselves and an engineering firm ("Design") of which they had been employees until that time, "(1) had no bona fide business purpose, (2) had, primarily, the purpose of directly reducing their income tax liabilities [and] (3) had, secondarily, an estate planning purpose which... must be taken to have also been solely motivated by tax and personal, not business, considerations." ...

Parsons, 84 DTC 6447, [1984] C.T.C 354, 84 DTC 6452 (FCA)-- summary under Related Companies Summary Under Tax Topics- Income Tax Act- Section 9- Related Companies It was found by the trial judge that management companies, which two professional engineers ("Parsons" and "Vivian") had incorporated and interposed between themselves and an engineering firm ("Design") of which they had been employees until that time, "(1) had no bona fide business purpose, (2) had, primarily, the purpose of directly reducing their income tax liabilities [and] (3) had, secondarily, an estate planning purpose which... must be taken to have also been solely motivated by tax and personal, not business, considerations." ...