Search - consideration

Provisions of the Act [4]                Subsection 146(9) of the Act (which has not been amended since it was added to the Act in 1972) provides as follows: (9) Where in a taxation year a trust governed by a registered retirement savings plan (a) disposes of property for a consideration less than the fair market value of the property at the time of the disposition, or for no consideration, or   (b) acquires property for a consideration greater than the fair market value of the property at the time of the acquisition, the difference between the fair market value and the consideration, if any, shall be included in computing the income for the taxation year of the annuitant under the plan ...     [5]                Subsection 146.3(4) of the Act (which has not been amended since it was added to the Act in 1978) provides as follows: (4) Where at any time in a taxation year a trust governed by a registered retirement income fund (a) disposes of property for a consideration less than the fair market value of the property at the time of the disposition, or for no consideration, or (b) acquires property for a consideration greater than the fair market value of the property at the time of the acquisition, 2 times the difference between that fair market value and the consideration, if any, shall be included in computing the income for the taxation year of the taxpayer who is the annuitant under the fund at that time ...   [45]            As noted above, section 27 of the ABCA provides that shares cannot be issued until the consideration is fully paid. ...

The basis for inclusion was that the appellant transferred or otherwise disposed of his rights under a share purchase agreement ("Option Agreement"), receiving $83,900 as consideration. ... Accordingly, since the right to specific performance remained open until the taxpayer signed the Release, the Release was in essence a disposition of the taxpayer's rights under the Option Agreement, whatever those rights may have been, in consideration for the payment. ... The Queen. 10 A "disposition" under paragraph 7(1)(b) refers to a transaction in which the taxpayer voluntarily agrees to exchange property rights that have accrued under an employee stock option agreement for some other consideration. ...

(g) where an amount can reasonably be regarded as being in part the consideration for disposition of depreciable property of a taxpayer of a prescribed class and as being in part consideration for something else. the part of the amount that can reasonably be regarded as being the consideration for such disposition shall be deemed to be the proceeds of disposition of depreciable property of that class irrespective of the form or legal effect of the contract or agreement: and the person to whom the depreciable property was disposed of shall be deemed to have acquired the property at a capital cost to him equal to the same part of that amount; The facts which gave rise to these proceedings can now be briefly Stated. ... From 1964 the respondent also had to determine what were the proceeds of disposition of the two apartment buildings that he had sold in 1964 with the land on which they were erected for a consideration of $70,500. ... In the Trial Division, the appellant had advanced two contentions: (a) that the respondent was estopped, by reasons of the representation he had made to the Minister in 1964 when he had agreed to withdraw his notice of objection, from alleging and establishing that the whole of the price of $70,500 was to be regarded as the consideration for the disposition of the land, and (b) that the circumstances surrounding the sale indicated that the sale price of $70,500 could reasonably be regarded as being in part the consideration for disposition of the two apartment buildings and that the amount of $44,625.33 was the amount that could reasonably be regarded as being the consideration for the disposition of those buildings. ...

The fee was, according to the Tax Court Judge, consideration for a financial service which, under Schedule V, Part VII, section 1 of the Act, was exempt from GST. ... Early or late payments- For the purposes of this Part, where tangible personal property or services are supplied and the amount of consideration for the supply shown in the invoice in respect of the supply may be reduced if the amount thereof is paid within a time specified in the invoice or an additional amount is charged to the recipient by the supplier if the amount of the consideration is not paid within a reasonable period specified in the invoice, the consideration due shall be deemed to be the amount of consideration shown in the invoice. 3 Subsection 136(1) states that "[f]or the purposes of this Part, a supply, by way of lease, licence or similar arrangement, of the use or right to use real property or tangible personal property shall be deemed to be a supply of real property, as the case may be". 4 158. Tax refund discounts- For the purposes of this Part, where a discounter (within the meaning of the Tax Rebate Discounting Act) pays an amount to a person to acquire from the person a right to a refund of tax (within the meaning of that Act[)], notwithstanding section 139, the discounter shall be deemed to have made (a) a taxable supply of a service for consideration equal to the lesser of (i) 2/3 of the amount, if any, by which the amount of the refund exceeds the amount paid by the discounter to the person to acquire the right, and (ii) $30; and (b) a separate supply of a financial service for consideration equal to the amount by which the amount of the refund exceeds the total of the amount paid by the discounter to the person to acquire the right and the amount determined under paragraph (a). 5      [1995] G.S.T.C. 49. 6 R.S.C. 1985, c. ...

According to the Minister of National Revenue (the Minister), this payment was consideration for a taxable supply by Costco to Amex and therefore subject to GST ... In particular, in order to justify the conclusion that he reached, it was incumbent upon the Tax Court Judge to explain why, when regard is had to this definition, the payment made pursuant to paragraph 3.01(a) of the Co-Branded Agreement was not consideration for a supply of property ... In these circumstances, it would be inappropriate to allow this matter to be decided without consideration being given to this definition ...

The following day Stephens entered into a similar agreement in respect of his option to purchase 10,000 common shares of MEPC Canada, for an aggregte consideration of $64,000. ... What is taxable under paragraph 7(l)(b) is the “benefit equal to the value of the consideration for the disposition”. ... Those words appear to me to be sufficiently broad as to include an amount received as consideration for the surrender of rights that are thereby extinguished,* [2] in contrast with an amount received as consideration for rights that are “transferred” and, as such, that remain in existence. ...

In accordance with Mother"s Pizza, use of the space in the buildings is the most important consideration in determining the use primarily made of the buildings. However, that does not exclude other considerations and we are prepared to assume, without deciding, that in a case such as this, a qualitative assessment is also relevant. ... However, he found this consideration was irrelevant to the question of whether a building was used primarily for processing. ...

He assessed the expert evidence of the appellant and respondent and, after a detailed consideration of that evidence, expressed his preference for the evidence of the respondent's expert which supported capitalizing the expenditure. 4.        ... The expert evidence dealt with distorting the appellant's expenses and income as a consideration in the expensing-capitalizing determination. ... There is no error in his having regard to these considerations. 7.        ...

Broad discretionary considerations come to bear in decisions such as these. There is a public interest consideration – the need for proceedings to move fairly and with due dispatch – but this is qualitatively different from the public interest considerations that apply when we forbid another body from doing what Parliament says it can do. ... It may be that the Federal Court will be aware of considerations not present in the material before me ...

However I do think he was providing some guidance as to the practical considerations to be taken into account by a Tax Court judge in exercising discretion in these cases. [15]            Poulton was not cited to the Tax Court judge by the Minister. The appellant, not having any advance notice of the proposed amended Reply, had no opportunity to research the law on the point. [16]            It appears that the Tax Court judge did not take into account the considerations in Poulton. Where in the exercise of discretion a trial judge fails to have regard for relevant considerations, even inadvertently as in this case because the relevant guiding authority was not cited to her, an appeal court is justified in interfering with that exercise of discretion. ...