Search - consideration

.)-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply In finding that a parent corporation was making a taxable supply of the services of its employees to its subsidiary, Slade L.J. stated (p. 5084): "If A agrees with B that B will perform certain services for A and that he will reimburse B for certain specified expenses which will be incurred by B in the performance of both services, the agreement to reimburse is, in my judgment, well capable of constituting sufficient consideration in law for those services. The bargain may be a bad one from B's point of view, but the courts do not enquire into the monetary adequacy of consideration." ...

Expense- Contract or Option Cancellation The taxpayer, which had agreed to pay a royalty to an American company in consideration for the provision by the American company of technical knowledge and of plans on an on-going basis, was entitled to deduct a payment made by it in consideration for the cancellation of the agreement. ...

.))-- summary under Subsection 153(1) Summary Under Tax Topics- Excise Tax Act- Section 153- Subsection 153(1) A theatre company which invited members of the public to sponsor a new seat in the theatre by paying £150, and which provided such subscribers with a personalized brass plaque displayed on the seat, an acknowledgement in its main foyer and a limited edition print by a Glagow artist, was liable to VAT on the total proceeds received pursuant to s. 10(2) of the Value Added Tax Act, 1983 (which provided that "if the supply is for a consideration in money its value shall be taken to be such amount as... is equal to the consideration"), notwithstanding evidence that the payments included an extremely large element of donation. ...

The Queen, 2000 DTC 2493 (TCC), aff'd 2002 DTC 7517, 2002 FCA 408-- summary under Other Summary Under Tax Topics- General Concepts- Fair Market Value- Other Part of the consideration for assets purchased by the taxpayer was the issue by it of special shares with an aggregate stated capital of $1,000. ... In finding that the portion of the assets acquired through the issue of the special shares should be considered to have a cost to the taxpayer of $1,000, Rip T.C.J. stated (at pp. 2510-2511) that "it is the directors who determine the stated capital of shares and the consideration for the issue of the shares", and further noted that the date of payment of the dividend might have been delayed indefinitely until the directors determined to pay it. ...

Profit- Patents and Know-How The taxpayer, which had been granted the exclusive world-wide licence to exploit the master patent for "Terylene" and was the owner of ancillary patents, granted to a Dutch company an exclusive licence of the right to exploit these rights and related know-how in the Netherlands and Belgian market in consideration for an annual royalty and, in addition, received a lump sum payment of £400,000 for its covenant not to enter those markets for the period of the patent. Since the £400,000 payment in essence was consideration for the granting of an exclusive licence of patent rights, i.e., for the disposition of a capital property, it was a capital receipt. ...

Royal Bank of Canada v Commissioners for His Majesty's Revenue and Customs, [2025] UKSC 2-- summary under Paragraph (c) Summary Under Tax Topics- Excise Tax Act- Section 217- Imported Taxable Supply- Paragraph (c) situs of a contractual obligation is the country where it can be enforced Before affirming the judgment of Falk LJ of the Court of Appeal, Lady Rose noted (at para. 48) in passing that: It is convenient to mention at this point that at para 54 of the leading judgment in the Court of Appeal, Falk LJ raised a problem about locating the situs of the right to receive the consideration referred to in Article 6(2). It is straightforward to treat the location of the actual land or the rights in the land as being in the State of source but it is more difficult to locate the situs of rights to payments in consideration of the right to work. ...

Agence du revenu du Québec, 2019 QCCQ 1430, rev'd 2021 QCCA 906-- summary under Paragraph 7(3)(a) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(3)- Paragraph 7(3)(a) no s. 69(1)(b) application to s. 7(1)(b) dispositions An individual (Des Groseillers) who donated some of his employee stock options on the shares of the qualifying person (“BMTC”) to arm's length registered charities was assessed by the ARQ on the basis that the Quebec equivalent of s. 69(1)(b) (Taxation Act, s. 422) deemed the “value of the consideration for the disposition” received by him to be equal to the options’ fair market value of $3M, thereby resulting in the receipt of deemed employment income in that amount by him pursuant to the Quebec equivalent of s. 7(1)(b) (TA, s. 50). ... He further found, in the alternative, that even if the s. 7(1)(b) equivalent applied, it only applied on the basis of the nil consideration actually received by Des Groseillers rather than being expanded by the s. 69(1)(b) equivalent to deem the consideration to be $3M. ...

The Court found that the payment of LMUK to a redeemer was consideration for a supply of services by the redeemer to LMUK itself, rather than representing third-party consideration for a supply of goods or services by the redeemer to the collector. ...

Profit- Rents The taxpayer, which had leased five properties to a related company, assigned the right to receive rents payable in respect of a period of five years and one day to a bank in consideration for a lump sum. ... He also was influenced by the consideration that if the taxpayer had granted the bank a six-year lease at nominal rents, the premiums payable would have been capital payments; and noted that the case was fundamentally different from the pre-payment by a tenant of a lump sum representing the discounted value of future rents payable by the tenant under a lease. ...

The transaction was one for other than a money consideration, and the parties were free to make their own bargain. No authority were cited for the claim of the Revenue in a case like this to go behind the agreed consideration and substitute a different figure.... ...