Search - consideration

I have no doubt that the location of the business was one of the paramount considerations present to Mr. ... Lowres by the landlord but was never a matter of serious consideration between them. ... The statutory rule outlined in Section 20(6) of the Income Tax Act quoted above applies only ‘ where an amount can reasonably be regarded as being in part consideration for disposition of depreciable property of a taxpayer of a prescribed class and as being in part consideration for something else’’. ...

If, therefore, there were no explanation, I should have had to give serious consideration to the question whether, having regard to the circumstances, the real bargain must be found to have been an agreement to make annual payments to the widow as part of the consideration for the transfer of the business to the company in 1958. ... In such a case, the remuneration is consideration for the service or services to which the third party was entitled from the recipient and it is not, in effect, a gift from the deceased. Similar reasoning would apply to a contract whereby a deceased had obtained an agreement for consideration from his partners to take a member of the deceased’s family into the partnership after his death. ...

The statute also declares that the rent or other consideration paid or given is to be regarded as paid or given on account of the price of the property. ... Thirdly, in the subsection the expression “rent or other consideration paid or given thereunder ’ ’ is used in contradistinction to the expression “the price fixed by the contract or arrangement ’ ’ the former being used with reference to rent or consideration for the use of the property during the lease or hiring and for the option itself while the latter includes the word “price” and appears to me to refer to the consideration to be given for the property under the terms of the contract in the event of the transaction resulting in the property vesting in the taxpayer. ... These considerations lead me to conclude that the words ‘‘rent or other consideration paid or given thereunder shall be deemed to be on account of the price of the property” do not bear the interpretation which the appellant’s contention requires. ...

The relevant provisions of the Income Tax Act, R.S.C. 1952, ce. 148, are as follows: “20. (1) Where depreciable property of a taxpayer of a prescribed class has, in a taxation year, been disposed of and the proceeds of disposition exceed the undepreciated capital cost to him of depreciable property of that class immediately before the disposition, the lesser of (a) the amount of the excess, or (b) the amount that the excess would be if the property had been disposed of for the capital cost thereof to the taxpayer, shall be included in computing his income for the year. (6) For the purpose of this section and regulations made under paragraph (a) of subsection (1) of section 11, the following rules apply: (g) Where an amount can reasonably be regarded as being in part the consideration for disposition of depreciable property of a taxpayer of a prescribed class and as being in part consideration for something else, the part of the amount that can reasonably be regarded as being the consideration for such disposition shall be deemed to be the proceeds of disposition of depreciable property of that class irrespective of the form or legal effect of the contract or agreement; and the person to whom the depreciable property was disposed of shall be deemed to have acquired the property at a capital cost to him equal to the same part of that amount;...’’ The issue in the appeal is whether the amount of $172,300 is that part of the total amount of $450,000, which the appellant received from the Toronto Transit Commission, that can reasonably be regarded as being the consideration for the disposition of the appellant’s buses which were its depreciable property. ... In my opinion, the amount of $172,300 can reasonably be regarded as being the consideration for the disposition of the buses, within the meaning of Section 20(6) (g) of the Act. ...

Had the appellant in this case deeded a share of his homestead property to his wife, whether for consideration or not, there would undoubtedly have been a transfer of such share to her. ... In either case, the consideration for that consent moved, not from the purchaser to her, but from the appellant, who by the agreement bargained for and obtained that consent and gave the consideration therefor. The consideration was his assignment to her, by the covenant above mentioned, of $5,000 of the price paid by the purchaser for property which belonged solely to the appellant. ...

The question as to the taxability of the said receipt of $17,000 is to be determined by a consideration of these facts and the relative provisions of the Income Tax Act, which then were: “3. ... The minute book of the respondent shows that the whole of the property was sold to the respondent in February, 1954 for a consideration of approximately $135,000. ... I may add, however, that quite apart from the above considerations, I would have been inclined to the view that the sum received was not a capital receipt. ...

I may have a good “bargaining position’’ when bargaining for a sale or other contract, but I do not sell or otherwise use this “bargaining position’’ as consideration. I use the “bargaining position’’ as a means of persuading the other party to give me more than he otherwise would for the property or other consideration that I have to dispose of. ... When it agreed to continue to accept the lower price for the more expensive power in consideration of being provided with the capital additions and improvements, it was, in effect, getting the additions and improvements in consideration of surrendering its right to deliver 25 cycle power and agreeing to provide 60 cycle power at a price lower than would otherwise have been economic. ...

Such conclusion is reinforced by the presence of the words ‘‘in consideration for...” ... The consideration was ‘“shares’’ in Rambridge not ‘‘shares’’ in Rambler and not a “right to purchase shares’’ in Rambridge. Where under an agreement shares are the consideration, the person who makes the expenditure is entitled to the shares by virtue of the agreement. ...

Limited (hereinafter called the ‘Underwriters’) the following amounts in consideration of the services rendered by the Underwriters as: hereinafter described: (a) $24,150 for services rendered by the Underwriters in forming and managing on Underwriting Group and Soliciting Dealers Group to facilitate subscriptions for the new common shares of the Appellant, and in consideration of the agreement by the Underwriters to use their best efforts to maintain an orderly market in the rights evidenced by the subscription warrants; (b) $108,315 representing commission payable to the Underwriters in consideration for their services as dealers in securities; and (c) $46 738.89 in consideration for the services of the Underwriters for the performance of all administrative and clerical work involved in processing warrants tendered by shareholders in the course of exercising their right to subscribe for and purchase the new common shares of the Appellant. ... The Appellant did not deduct the sum of $108,315 described in paragraph 5(b)..., such sum being regarded by the Appellant as a non-deductible commission payable to the Underwriters in consideration for their services as dealers in securities.” ... Amounts of $46,738.89 and $121,980 are claimed as deductible in sections 5(c) and 6(c) of the Notice of Appeal ‘‘in consideration for the services of the Underwriters for the performance of all administrative and clerical work involved in processing warrants tendered by shareholders in the course of exercising their rights to subscribe for and purchase the new common shares of the Appellant...’’ ...

No evidence was tendered as to the actual consideration for this assignment. ... No evidence was given as to the actual consideration for this assignment. ... Harris, seems particularly appropriate to the circumstances pertaining to the case presently presented for consideration. ...