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Canada (Minister of Citizenship and Immigration), 2009 SCC 12; [2009] 1 S.C.R. 339 reasonableness requires consideration of the existence of justification, transparency, and intelligibility in the decision-making process. ... Further, a consideration of the Applicant’s compliance from 1985 onwards was proper, relevant and necessary given the Applicant’s own submissions ... Conclusion   [51]            In consideration of the above conclusions, this application for judicial review is allowed and the matter referred back to the Minister for redetermination by a delegate not previously involved in the review of the Applicant’s request ...

However, different considerations may apply with respect to the taxes on the 84% of the vacant land. ... The same considerations were applicable to the use of the small portion of land referred to in paragraph 6 and to the land referred to in paragraph 7 which was expropriated. ... However, even at this time of arrested expansion of the pharmaceutical business, there was under very active consideration the construction of a very large antibiotic plant on the Canadian site. ...

With respect to density, considerations as to design and specific use came into play to award the developer bonus points permitting him to increase floor space in the proposed building. ... Based on the formula respecting parking spaces and the Plus 15 ped-way system, and in consideration of the release of a development permit, the plaintiff paid the municipality the sum of $712,000 with respect to parking spaces and $114,000 with respect to the Plus 15 formula. ... Thurgood, [1934] 1 K.B. 548, it was held that the character of the expenditure or the nature of the asset is an irrelevant consideration. ...

Farmer (1910), 5 T.C. 529, Lord Dunedin made the following oft-quoted statement, at page 536: Now I don't say that this consideration is absolutely final or determinative, but in a rough way I think it is not a bad criterion of what is capital expenditure as against what is income expenditure to say that capital expenditure is a thing that is going to be spent once and for all, and income expenditure is a thing that is going to recur every year. ... A third consideration which has frequently influenced the courts is the magnitude of the expenditure in question in relation to the value of the asset as a whole. ... A further consideration, which is related to the "once and for all versus continuous or recurring” criteria is the useful lifetime of the expenditure. ...

The law The relevant provisions of the Act are as follows: 127.3(2)(a) "scientific research tax credit" of a taxpayer for a taxation year means the aggregate of all amounts each of which is an amount equal to (i) where the taxpayer is a corporation, 50 per cent, or (ii) where the taxpayer is an individual other than a trust, 34 per cent of an amount designated by a corporation under subsection 194(4) in respect of (iii) a share acquired by the taxpayer in the year where the taxpayer is the first person, other than a broker or dealer in securities, to be a registered holder thereof, (iv) a bond, debenture, bill, note, mortgage, hypothec or similar obligation (in this section and in Part VIII referred to as a“ debt obligation”) acquired by the taxpayer in the year where the taxpayer is the first person, other than a broker or dealer in securities, to be a registered holder thereof, or (v) a right acquired by the taxpayer in the year where the taxpayer is the first person, other than a broker or dealer in securities, to have acquired that right, less any amount required by subsection (5) to be deducted in computing the taxpayer's scientific research tax credit for the year; and 127.3(6) For the purposes of this Act, where at any time in a taxation year a taxpayer has acquired a share, debt obligation or right and is the first registered holder of the share or debt obligation or the first person to have acquired the right, as the case may be, other than a broker or dealer in securities, and an amount is, at any time, designated by a corporation under subsection 194(4), in respect of the share, debt obligation or right, the following rules apply: (a) he shall be deemed to have acquired the share, debt obligation or right at a cost to him equal to the amount by which (i) its cost to him as otherwise determined exceeds (ii) 50 per cent of the amount so designated in respect thereof; and (b) where the amount determined under subparagraph (a)(ii) exceeds the amount determined under subparagraph (a)(i), the excess shall (i) where the share, debt obligation or right, as the case may be, is a capital property to him, be deemed to be a capital gain of the taxpayer for the year from the disposition of that property; and (ii) in any other case, be included in computing the income of the taxpayer for the year, and the cost to him of the share, debt obligation or right, as the case may be, shall be deemed to be nil. 194(4) Every taxable Canadian corporation may, by filing a prescribed form with the Minister at any time on or before the last day of the month immediately following a month in which it issued a share or debt obligation or granted a right under a scientific research financing contract (other than a share or debt obligation issued or a right granted before October 1983, or a share in respect of which the corporation has, on or before that day, designated an amount under subsection 192(4) designate, for the purposes of this Part and Part I, an amount in respect of that share, debt obligation or right not exceeding the amount by which (a) the amount of the consideration for which it was issued or granted, as the case may be, exceeds (b) in the case of a share, the amount cf any assistance (other than an amount included in computing the scientific research tax credit of a taxpayer in respect of that share) provided, or to be provided by a government, municipality or any other public authority in respect of, or for the acquisition of, that share. 248.(1) In this Act, "business" includes a profession, calling, trade, manufacture or undertaking of any kind whatever and, except for the purposes of paragraph 18(2)(c), an adventure or concern in the nature of trade but does not include an office or employment. 3. ... The success of the transactions under consideration required that the purchasers of the securities in question, who were traders in shares and securities, be able to realize a business loss from trading the securities and a recovery of tax from Revenue. ... The considerations prompting the transaction may be of such a business nature as to invest it with the character of an adventure in the nature of trade even if there is no intention of making a profit on the sale of the purchased commodity. (7) The fact that the transaction is totally different in nature from any of the other activities of the taxpayer and that he has never entered upon a transaction of that kind before or since does not, of itself, take it out of the category of being an adventure in the nature of trade. (8) It is not essential to a transaction being an adventure in the nature of trade that an organization be set up to carry it into effect or that some operation be performed on the subject matter of the transaction to make it saleable. ...

In my opinion, a non-institutional or private investor would have had to be offered, and would have been able to obtain, a rate of interest on a mortgage, such as the one on Lot 16, of at least 15% in order to be attracted to such an investment. (2) Given the types of properties involved and their location and having regard to alternative investment opportunities in the mortgage market, on or about April 3, 1975 would a prudent investor or lender of funds, being a stranger to the mortgagors, acting at arm’s length with them and being motivated solely by investment considerations: (i) have been able to insist on rates of interest higher than those in the subject mortgages, or (ii) assuming that the rates of interest in the subject mortgages were for any reason not subject to negotiation and change, have advanced the full face amounts of these mortgages? ... Where one of the co-contracting parties is, by reason of his influence or superiority, in a position to pervert the ordinary rule of supply and demand and force the other to transact for a consideration which is substantially different than adequate, normal or fair market value, the transaction in question is not at arm’s length. ... This is further confirmed in the specific legislative provisions under consideration here. ...

Counsel for the defendant referred to three cases for consideration. The Queen v H Griffiths Company Ltd, [1976] CTC 454; 76 DTC 6261, summarizing from the headnote: The defendant taxpayer company, engaged in the highly competitive field of mechanical contracting, incorporated a subsidiary to provide it with an adequate supply of competitively priced sheet-metal products. ... I am not persuaded that “short-term consideration” is relevant. The appeal in the Paco case, (supra), as I appreciate the decision, was allowed because the arrangements entered into were for the purpose of promoting a Canadian business. ... Mr Justice Pigeon referred to this consideration in Freud, (supra), as “fairness to the taxpayers” at 441 [5281]: Such being the principles to be applied in cases when a profit is obtained, the same rules must be followed when a loss is suffered. ...

The CCRA stated that the most important consideration for this determination is whether or not the penalty and interest charges arose because of extraordinary circumstances beyond the control of the taxpayer, which actually prevented him from meeting his income tax obligations as and when required. ... That analysis, in the context of discretionary decisions under the "fairness package", would require consideration of the following factors: (1)            The fairness package was enacted because Parliament recognized the need for relief from certain provisions of the Income Tax Act that can result in undue hardship because of the complexity of the tax laws and the procedural issues entailed in challenging tax assessments. ... That would point to a reasonableness standard. (3)            The decision under review combines fact finding with a consideration of the policy of tax administration, and sometimes questions of law. ...

The granting clause reads: WITNESSETH, that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Tenant to be paid, observed and performed the Landlord has demised and leased and by these presents does hereby demise and lease unto the Tenant All and Singular the lands and premises situate, lying and being in the City of Toronto, in the County of York, more particularly described in Schedule “A” hereto annexed, which lands exclusive of any buildings or other improvements are hereinafter referred to as the “demised premises” D. ... The granting clause in said assignment reads: NOW THIS INDENTURED WITNESSETH that in consideration of other valuable consideration and the sum of TWO ($2.00)—Dollars now paid by the Assignee to the Assignor (the receipt whereof is hereby acknowledged) the Assignor doth hereby grant and assign unto the Assignee all that certain parcel of land situate in the City of Toronto, in the County of York, as more particularly described in Schedule “A” hereto annexed; together with the residue unexpired of the term of years in the said lease mentioned, and the said lease and all benefit and advantage to be derived therefrom. ...

He submits that, on the evidence, it should be found that the sum of $250,000 although described as being payable “on account of special management services" performed by the vendor was in substance additional consideration for the purchase of the share. ... In 1973 the partnership of Blake Investments & Company purchased 60 per cent of the shares of Taiga for a total consideration of $25,000. ... Such past consideration may not have provided the basis for a legal contractual obligation on the part of Taiga or a legal contractual right on the part of Blake before the parties agreed to it. ...