Search - consideration

The payments "were not payments made without consideration and cannot therefore be considered 'gifts'.... [E]ach parent here received a consideration, i.e., the Christian education of his children. ...

Given that advances in excess of $120,000 had actually been made by the taxpayer to the other corporation in varying amounts both before and after the agreement of May 18, 1984, the requirement that "consideration" for $120,000 be issued or granted was met. Words and Phrases consideration ...

., 76 DTC 6010, [1976] CTC 24 (FCTD)-- summary under Agency Summary Under Tax Topics- General Concepts- Agency weight given to written agreement terms in finding that intermediary purchased as principal The taxpayer, in order to defer pursuant to s. 20(1)(n) the recognition of gain on the sale of land to the City of Calgary, agreed to sell the land to a trust company for cash consideration payable in eight years time. The trust company contemporaneously sold the land to the City for close to immediate consideration. ...

., 76 DTC 6010, [1976] CTC 24 (FCTD)-- summary under Subsection 104(2) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(2) The taxpayer, in order to defer pursuant to s. 20(1)(n) the recognition of gain on the sale of land to the City of Calgary, agreed to sell the land to a trust company for cash consideration payable in eight years time. The trust company contemporaneously sold the land to the City for close to immediate consideration. ...

The Queen, 90 DTC 6583, [1990] 2 CTC 493 (FCTD)-- summary under Subsection 97(2) Summary Under Tax Topics- Income Tax Act- Section 97- Subsection 97(2) capital distribution part of consideration for land contribution The taxpayer ("Haro") contributed real estate worth $1.9 million to a partnership and the other member ("B.C. ... Reed J. held that it would be artificial in the extreme to characterize the facts any other way than that Haro had received both a partnership interest and the cash payment as consideration for the transfer of the lands, with the result that the agreed amount in the subsection 97(2) election filed jointly by Haro and B.C. ...

"A review of the considerations that led to the decision shows that the Director failed to consider the likelihood that when the lawsuit was resolved PGL would be dissolved and would not commence carrying on business. This would involve consideration of things such as the nature of the claims advanced in the lawsuit, the role of PGL in the lawsuit and what would be the reasonable expectation of PGL's future if the lawsuit succeeded. ...

In setting aside the decision of the Minister’s delegate to deny the request, and referring the matter back for a redetermination, Campbell J stated (at paras 6, 7, 8, and 9): In my view, the Delegate was required to state a clear and supportable justification to deny the Applicant’s re-appropriation request given the large sum of money under consideration. … There is no evidence that the Applicant was intentionally neglecting or avoiding its responsibility to maintain proper records. ... He also found (at para. 10) that the delegate's consideration of the taxpayer's GST-filing record was "an extraneous consideration." ...

MNR, 72 DTC 6232, [1972] CTC 265 (FCTD), briefly aff'd 74 DTC 6129 (FCA)-- summary under Subsection 6(3) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3) The taxpayer sold their shares pursuant to a deed of sale that provided that $150,000 was paid at the time of signing the deed of sale as the purchase price for their shares, and that a further $150,000 was payable in ten annual instalments in consideration for the sale by them of their right to engage in the bakery business and their right to use the name "Richstone" in relation to the business for a 25-year period. A further clause stipulated that further consideration for the ten $15,000 instalments was the vendor's covenant not to engage in the bakery business for 25 years within Quebec or Ontario and not to use the Richstone name for 25 years within that territory. ...

The payment "was primarily motivated by considerations extraneous to the employment, namely public and labour relations considerations". ...

In his concurring reasons for judgment, Robertson J.A. found that the concession of the Minister in IT-445- that interest paid on funds borrowed to honour guarantees given for adequate consideration, may be deducted from income even though the use of such funds has only an indirect effect on the taxpayer's income-earning capacity- had a legal foundation. However, here the consideration (in the broad sense of the word) received by the taxpayer in return for granting the guarantee was inadequate and the granting of the guarantee was intended to facilitate the income-earning capacity of the principal debtor (Trennd) and not the guarantor (the taxpayer). ...