Search - consideration

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.... ...

The Queen, 2002 DTC 2185, 2002 CanLII 47015 (TCC)-- summary under Income-Producing Purpose Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose finding an acquirer to maximize shareholder value The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net of working capital, in consideration for advice provided in connection with considering alternatives to maximize shareholders' value, with an emphasis on merger possibilities. The transaction ultimately implemented entailed the taxpayer's shareholders selling their shares, pursuant to a plan of arrangement, to another publicly-traded oil and gas company in consideration for treasury shares of that purchaser. ...

The Queen, 2002 DTC 2185, 2002 CanLII 47015 (TCC)-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net of working capital, in consideration for advice provided in connection with considering alternatives to maximize shareholders' value, with an emphasis on merger possibilities. The transaction ultimately implemented entailed the taxpayer's shareholders selling their shares, pursuant to a plan of arrangement, to another publicly-traded oil and gas company in consideration for treasury shares of that purchaser. ...

The Queen, 2002 DTC 2185, 2002 CanLII 47015 (TCC)-- summary under Paragraph 20(1)(e) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e) The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net of working capital, in consideration for advice provided in connection with considering alternatives to maximize shareholders' value, with an emphasis on merger possibilities. The transaction ultimately implemented entailed the taxpayer's shareholders selling their shares, pursuant to a plan of arrangement, to another publicly-traded oil and gas company in consideration for treasury shares of that purchaser. ...

The Court first found that the transfer in fact qualified for this exemption as QL should be regarded as having issued one common share to 1006 (in consideration for the transfer to it of intangible personal property) immediately before the transfer to it of the tangible personal property (in consideration for the issue by QL to 1006 of special Class A shares.) ...

Profit- Copyright The taxpayer, who was a professor of mathematics at Laval University, assigned the copyright in four textbooks that he had translated or written to the University (which was also a publisher) in consideration for future royalties. At a later date, he assigned all his rights under these contracts to the University in consideration for the lump sum of $75,000. ...

Cl. 314, 82-1 U.S.TC P9301 (1982)-- summary under Non-Business-Income Tax Summary Under Tax Topics- Income Tax Act- Section 126- Subsection 126(7)- Non-Business-Income Tax In finding that the taxes imposed under the Mining Tax Act (Ontario) (the "OMT") on an open pit iron ore mine did not constitute "any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country" for purposes of s. 901(b)(1) of the Internal Revenue Code, the Court stated: "The key to creditability is not that a particular class of net profit, reached by an accounting procedure that may be acceptable or justified for other considerations, is taxed; to be creditable, the net profit subject to foreign tax must be analogous to the type of net profit reached by the United States income tax. ... For instance, the non-deductibility of land expenses, rent, and private royalties- all or a large part of each of which mirrorimportant costs of mining production- removed from the consideration of the OMT crucial expenses that are normally incurred in the mining business, significant expenses which may well offset any gain the company could make from mining. ...

" Lord Fraser found that the right to receive the additional consideration was an "asset" (broadly defined to mean all forms of property), and that although the additional amount was paid to satisfy or extinguish such right and not as part of the consideration for the sale of the shares, such sum was clearly "derived from" such asset (the deferred right) and therefore was deemed to be received in connection with a disposal. ...

Stock ‘94 Szolgáltató Zrt. v Regional Customs and Finance Directorate-General for Southern Transdanubia of the National Tax and Customs Office, Hungary, [2016] BVC 45, C-208/15 (European Court of Justice (5th Chamber))-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply interest on loan to fund taxable supply was part of taxable consideration A Hungarian company was set up to assist Hungarian farmers by lending them money to fund the purchase by them from it of current assets needed in their business. The European Court of Justice (subject to some further findings of facts to be made by the local court) essentially applied the single supply doctrine to find that the loan interest was part of the consideration for the sale of products by the company to the farmers, so that the interest was subject to VAT (even though, of course, interest on loans viewed as being for a separate supply was VAT-exempt). ...

Crean v Canada (Attorney General), 2019 BCSC 146-- summary under Subsection 84.1(1) Summary Under Tax Topics- Income Tax Act- Section 84.1- Subsection 84.1(1) share sale for Newco note generated s. 84.1 dividend before its rectification The executed documents indicated that an individual (Thomas) sold his shares of a corporation (Crean Holdings) to the Newco of his brother (Michael) in consideration for a promissory note of the Newco. ... Supreme Court for a rectification order redoing the written agreement to provide that Thomas sold his shares to Michael directly for a promissory note, and that there was an immediate on-sale by Michael of those shares to his Newco in consideration for it assuming the promissory note. ...