Search - consideration

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the covenants herein contained the parties hereto hereby agree as follows: 1. ... NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto hereby agree each with the others as follows: The appellant could not read or write in the English language but agreed that he had signed Exhibits A-2 and A-3, and that they represented his understanding of the arrangements with his son and his son-in-law. ...

One paragraph of that letter reads as follows: As I understand the position, the value of consideration for land transfer tax purposes is the fair market value of the lands plus the undepreciated capital cost of the buildings and other fixed depreciable property, although you will be using different values for the purposes of electing under section 85 of the Income Tax Act. ... As I view the matter, the appellant had competent advisors and it sold, inter alia, land to its subsidiary pursuant to an agreement (Exhibit A-3), which agreement stipulated what the consideration was to be for that sale. ...

Put another way, it was his position that the mechanism ultimately chosen for the separation of the business interests of Mr and Mrs Schiel must have been chosen on the basis of tax considerations present in the mind of a professional advisor. ... I do not infer that considerations based on section 125 of the Act had a bearing at the time when the separate structure was formed. ...

On December 1, 1971, appellant settled upon his wife Merida Phyllis Sachs as trustee, $1 and other good valuable consideration for the purpose of establishing the Harold Sachs Family Trust (Trust). 3. ... It would appear to me that, subject to a consideration of the appellant’s submission with respect to difference—and in his submission it was a crucial difference—between this case and the Meade case, the Meade case should apply. ...

Paragraph 212(1)(d) reads as follows: 212. (1) Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to him as, on account or in lieu of payment of, or in satisfaction of, (d) rent, royalty or a similar payment, including, but not so as to restrict the generality of the foregoing, any payment (i) for the use of or for the right to use in Canada any property, invention, trade name, patent, trade mark, design or model, plan, secret formula, process or other thing whatever, (ii) for information concerning industrial, commercial or scientific experience where the total amount payable as consideration for such information is dependent in whole or in part upon (A) the use to be made thereof or the benefit to be derived therefrom, (B) production or sales of goods or services, or (C) profits, (iii) for services of an industrial, commercial or scientific character performed by a non-resident person where the total amount payable as consideration for such services is dependent in whole or in part upon (A) the use to be made thereof or the benefit to be derived therefrom, (B) production or sales of goods or services, or (C) profits, but not including a payment made for services performed in connection with the sale of property or the negotiation of a contract, (iv) made pursuant to an agreement between a person resident in Canada and a non-resident person under which the non-resident person agrees not to use or not to permit any other person to use any thing referred to in subparagraph (i) or any information referred to in subparagraph (ii), or (v) that was dependent upon the use of or production from property in Canada whether or not it was an instalment on the sale price of the property, but not including an instalment on the sale price of agricultural land, but not including (vi) a royalty or similar payment on or in respect of a copyright, (vii) a payment in respect of the use by a railway company of railway rolling stock as defined in the definition “rolling stock’’ in section 2 of the Railway Act, (viii) a payment made under a bona fide cost-sharing arrangement under which the person making the payment shares on a reasonable basis with one or more non-resident persons research and development expenses in exchange for an interest in any or all property or other things of value that may result therefrom, (ix) a rental payment for the use of or the right to use outside Canada any corporeal property, or (x) any payment made to a person with whom the payer is dealing at arm’s length, to the extent that the amount thereof is deductible in computing the income of the payer under Part I from a business carried on by him in a country other than Canada; it should be noted that subparagraph 212(1)(d)(vii) was amended and clauses (A) and (B) added by SC 1974-75-76, c 26. ...

In consideration of the rights and privileges granted under the licences, it was agreed that S.P.P. shall pay to the Appellant throughout the term of the Agreement a royalty of 5% of the net proceeds realized by S.P.P. and/or its sub-licencees on the manufacture, use or sale of any Porta-Test equipment covered by the Agreement. 6. ... Furthermore, this alleged way of fixing the amount for the payment of the exclusive rights cannot be taken too seriously into consideration, since if the amount of $4,000,000 had been the proceeds of sales, then no amount would have been left for the sale of the exclusive rights. ...

Despite appellant’s testimony that she should not have had to pay federal income tax during the entire period from September 1, 1970 to August 31, 1972, and since the Board has under consideration the assessment for the 1970 taxation year, it can only decide on the appeal from the assessment for that year. ... The second aspect is that for purposes of section 33 of the federal Income Tax Act, the Board must take into consideration that in 1970 appellant paid $538.43 in provincial tax. ...

Under an agreement of purchase and sale dated November 14, 1968 the appellant sold all the issued shares of All Records Supply Company of Canada Limited ("ARS") to Columbia Records of Canada Limited for a consideration payable in part on closing and in three subsequent payments to be determined in accordance with the formula set out in paragraph 1.3 which reads as follows: As full payment for the Sale Shares, CRC will pay Seller as follows: (i) At the closing, $660,000 (all sums herein are expressed in Canadian dollars); (il) Following receipt of an audited financial statement for the year ended April 30, 1969—a payment equal to the lesser of (A) $400,000 and (B) the result obtained by dividing the post-tax net profits of ARS for such year by $186,000 and multiplying the result by $400,000; (iii) Following receipt of an audited financial statement for the year ended April 30, 1970—a payment which shall cause the total payments under this clause (iii) and the preceding clause (ii) to equal the lesser of (A) $800,000 and (B) the result obtained by dividing the net aggregate of the post-tax net profits (after deducting losses) of ARS, as determined by said audited financial statement, for the two fiscal years ended April 30, 1969 and 1970 by $372,000 and multiplying the result by $800,000; (iv) Following receipt of an audited financial statement for the year ended April 30, 1971—a payment which shall cause the total payments under this clause (iv) and the preceding clauses (ii) and (iii) to equal the lesser of (A) $1,200,000 and (B) the result obtained by dividing the net aggregate of the post-tax net profits (after deducting losses) of ARS, as determined by said audited financial statement, for the three fiscal years ended April 30, 1969, 1970, and 1971 by $558,000 and multiplying the result by $1,200,000. ... Mr Justice Judson said in the Barfried case at page 575: “The day- to-day accrual of interest seems to me to be an essential characteristic”, and in the Saskatchewan Farm Security Act case Mr Justice Rand, at page 411, said: interest is, in general terms, the return or consideration or compensation for the use or retention by one person of a sum of money, belonging to, in a colloquial sense, or owed to, another. ...

If I understand the appellants’ proposition, the shareholders were to transfer all their shares to Finco in consideration of a so-called “rente capitale”. ... I do not subscribe to the assertion that this term “was picked out of the air” without any knowledge or consideration of its legal ramifications. ...

I am satisfied that the only possible consideration for which the purchase price was established in the agreement was Mr Crockett’s 500 shares with all the associated rights and privileges including voting rights passing to Imperial Optical Co Ltd on completion of the sale. ... Without that consideration, the agreement is meaningless. I hold, therefore, that the pertinent facts of these appeals falls clearly under paragraph 139(5d)(b) of the Income Tax Act and that the Minister did not err in deeming that Toric Ootical Ltd and imperial Optical Co Ltd are related companies within the meaning of that section of the Act. ...