Search - consideration

O'Connor TCJ. referred to the submission of the taxpayer's counsel that the transfers of shares to the taxpayer's children were made for adequate consideration. ...

This payment was characterized as part of the consideration which the taxpayer was required to pay for the business of Queen, with the result that it was found to be a capital expenditure. ...

Québec (Sous-ministre du Revenu), 1999 CanLII 10635 (Court of Quebec)-- summary under Paragraph 6(1)(a) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) taxable benefit when Government paid the law society fees of Crown attorney The taxpayer, who was a Crown attorney employed by the Quebec government, was found by Bossé J to have received a taxable benefit by virtue of his employer’s payment of his dues to the Quebec Bar, taking into consideration that the payment of such dues for him was not driven by the requirements of the contract of employment and resulted in his enrichment because this was an expense which he otherwise would have had to bear. ...

Poelman J found (at para. 240) that the imputed credit rating of EEC (otherwise no higher than BB-) should not: allow consideration of implicit support to influence opinions about reasonable interest rates…. ... After having stated (at para. 264) a Gabco- derived test as to “whether no business would have contracted to pay that amount, having only its business considerations in mind and under the form of transaction pursuant to which the obligation was incurred,” Poelman J concluded (at para. 266) that the interest on the 2004 note (as well as the 2006 and 2007 notes) was fully deductible as having a reasonable amount notwithstanding that the rate exceeded “what the evidence shows would probably have been paid under a similar arm’s length transaction.” ...

In finding this approach to be insufficiently nuanced, the majority stated, that in determining the arm’s length consideration: “one should include all of the objective circumstances of the actual … mine” and the “objective circumstances of the copper concentrate market as at February 2007” (para. 179) “it would be appropriate to exclude any considerations that are the product of C.M.P.L.’s non-arm’s length relationship with G.I.A.G. and the broader Glencore Group” which “would include whatever attitude or policy C.M.P.L. had formed about the issue of risk when selling to G.I.A.G” (para. 180) “C.M.P.L. … could legitimately adopt a more conservative approach to risk so long as it was commercially rational to do so, and it is what an independent party dealing at arm’s length might reasonably be expected to have done” (para. 181) “the possibility of a range of arm’s length outcomes, each of which would be sufficient to answer the statutory test, is supported by authority” (para. 183) ...

., Civil Appeal Nos. 8733-8734 of 2018, 2 March 202, Supreme Court of India-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 consideration for software paid by Indian resellers was not royalties for Canadian (and other) Treaty purposes At issue were numerous joined appeals involving the application of withholding tax by the Commissioner of consideration paid by residents of India to non-residents under four broad categories of licensing and sale transactions described below and involving the application of 18 income tax conventions (listed at para. 40, and described at para. 41 as being relevantly “substantially similar”) including that with Canada: Category 1: Computer software purchased directly by an end-user, resident in India, from a foreign, non-resident supplier or manufacturer (for example, a non-exclusive licence to use Samsung software on the end-user’s Samsung mobile device, with a prohibition against making the software available to any other person, or copying it other than for backup purposes). ...

Among other things, none of the stipulated consideration was ever paid by the holding company and the directors of READ did not approve the transfer as required by the articles. ...

Among other things, none of the stipulated consideration was ever paid by the holding company and the directors of READ did not approve the transfer as required by the articles. ...

" After finding that there in fact was only one supply involved (of delivered bulbs) Lord Slynn went on to find that, even if there were two supplies, the portion of the money received by the taxpayer for postage constituted part of the consideration received by it for the supply of the bulbs. ...

.)-- summary under Paragraph 18(1)(a) Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a) A company, which was in financial difficulty, agreed to pay 20% of its net profits for a four-year period to creditors "in consideration of their giving to the Company the full benefit of their technical and financial knowledge and experience". ...