Search - consideration

In short, the obligation to make these payments was undertaken by the appellants in consideration of their acquisition of the right and opportunity to earn profits, that is, of the right to conduct the business, and not for the purpose of producing profits in the conduct of the business.” ... It seems, therefore, that the obligation to prepare and deposit the Forest Management Plan was assumed by the appellant company in part consideration, at least, of the acquisition of the licences and the opportunity to earn profits therefrom. ... They claimed to deduct that sum in estimating their profits for income tax: Held, that the agreement to pay the commutation money was in fact part of the consideration for the transfer of the business, that the payment was therefore a ‘sum employed as capital’ and could not be deducted.” ...

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises and of the mutual covenants of the parties hereto, it is agreed by and between the parties as follows: 1. ... Ford that if I were of the opinion that the Company and the owners of royalty interests should be assessed as an ‘‘association’’ that I should refer the assessment back to the Minister for further consideration and for formal amendment. ... The substance of the transaction was, I think, the irrevocable alienation, for a consideration paid, of a stated percentage of any production recovered, or the proceeds of that production when sold, less certain deductions. ...

I have not attempted 'to set out all the details of the will, but only such parts thereof as are necessary to the consideration of this case. ... I shall now turn to consideration of the other main points raised by the Respondent—that the income of the beneficiary is received from the estate and not from a mining company and that to hold otherwise would involve consideration of the executors’ accounts, their origin, allocation of expenses, etc.‘ I have been unable to find any case in our own courts but there are several in other courts of the Empire where the matter has been given consideration, and which I have found of great assistance in reaching my conclusions. ... In my consideration of the evidence therefore I have confined myself to the documents accompanying the certificate dated January 18, 1945, the Examination for Discovery of the Deputy Minister and the will of the deceased. ...

That requires consideration of the appellant’s letter of May 14, 1953, Exhibit 7, in which he gave an option to Messrs. ... There is no doubt that they considered this to be the full amount of the consideration for the sale of the shares. ... They could not lawfully be part of such consideration and it was never intended that they should be. ...

The consideration for the shares in Kootenay Breweries and Fernie Brewing thus acquired was the issue of certain Class “‘A’’ and Class “B” shares of the appellant company and $1,634,730 in cash. ... Subsequent to the acquisition of these shares on June 8, 1950, the appellant alleges that it effected certain borrowings in the form and on the dates as follows: (a) $40,000 from the Cranbrook Brewing Company Limited by means of a demand note bearing interest at 5% per annum, dated June 9, 1950; (b) $150,000 borrowed from Brewery Investments Limited by means of a demand note bearing interest at 5% per annum, dated June 13, 1950; (c) On June 15, 1950, Interior Breweries Limited issued 414% First Mortgage and Collateral Trust Bonds of a principal amount of $400,000 and 514% Convertible Debentures of a principal amount of $400,000; said bonds and debentures were sold to Lauder, Mercer and Company, Vancouver, B.C., pursuant to an underwriting agreement, and the company received as consideration therefor, the sum of $760,000 on the same day; (d) $85,000 from the Cranbrook Brewing Company Limited by means of a demand note bearing interest at 5% per annum, dated August 25, 1950. ... The fact is that on the completion of the financing program, the appellant had only about $15,000 working capital and was itself indebted to several of its subsidiaries; taking all the companies into consideration, the consolidated working capital was about $480,000, mostly in inventories, receivables and the like. ...

But in the period 1951 to 1963 there were a number of other real estate purchases and sales by the appellant, and for the Minister it is submitted that, taking into consideration the whole course of conduct of the taxpayer in the light of all the circumstances (Cragg v. ... Even omitting from consideration the sale of the apartment at 387] Retallick Street, due it is said to the appellant’s move to Calgary, the fact remains that one apartment house was sold shortly after completion and another was sold long before it was completed, both at very substantial profits. ... I am satisfied from a consideration of the evidence and the whole course of conduct of the appellant in relation to the apartment houses, that when in 1955 he had constructed the first of a series of apartment houses, he was entering upon an adventure in the nature of trade and that in 1958 the profits from the sale of the first of such transactions were realized when he sold 3801 Princess Drive. ...

What would seem, at first reading, an involved affair, can be greatly simplified when subjected to careful consideration. ... On September 25, 1964, the appeal having been argued on the 14th, the respondent’s counsel filed a written argument which, at least, appears to suggest a more plausible consideration. ... His submission that the amounts paid to him, May 5, 1955, and February 8 and 9, 1956, represent profits earned during the 1954 and 1955 taxation years might deserve consideration if those monetary distributions consisted in regular dividends or stock transactions by the taxpayer himself, instead of some undivulged but discernible scheme for profit-sharing of a venture in the nature of trade. ...

In an agreement in writing between the respondent and Municipal dated November 27, 1958, it is stated that the respondent, in consideration of one dollar and of the covenants and agreements thereinafter set forth: “hereby sells to the purchaser all the rock required by the purchaser from the Vendor’s land hereinafter described, for the purpose of the purchaser’s contract for the construction of causeway in the Big Bras d’Or Lake, in the vicinity of Seal Island in the said lake.” ... Spooner, [1933] A.C. 684, affirming (1931) S.C.R. 399 in which it was held that oil royalties forming part of the consideration for the sale of property were not income even though they were realizable only from oil produced by the purchaser from the property. ... Moreover, while it might be possible to infer that from the point of view of the contractor the large, though unknown, quantity of rock obtained from the respondent’s property was the prime consideration in reaching the figure of $17,000, from the point of view of the respondent I would infer that at that stage the chief elements in respect of which a satisfactory settlement was required were the losses of the accommodations which the property formerly afforded and in particular the losses of the springs, of the road to the pasture and woodland and of half of the cultivated land rather than the unknown quantity of rock in respect of which he was entitled to payment at the rate of 2^2 cents per ton but had no way of knowing what that would amount to or whether it would be more or less than the losses which the removal of the rock entailed. ...

After abandoning his original plan to subdivide the property, he gave some consideration to what should be done with it, but reached no conclusion. ... I have given this argument my best consideration, but I cannot escape the conclusion that the original idea, namely, to make gain or profit, continued. ... In its judgment, delivered a few days ago [[1958] C.T.C. 18] the Chief Justice of Canada, speaking for the Court, said: A consideration of the entire record makes it clear that that arrangement was an adventure or concern in the nature of trade within the meaning of the term ‘business’ as defined in the Act, but the argument is that, because of differences which arose between him and his relative, what he did subsequently was merely an endeavour to realize upon an investment. ...

VI, 0. 52, reading: ^12. (1) In computing income, no deduction shall be made in respect of (a) an outlay or expense except to the extent that it was made or incurred by the taxpayer for the purpose of gaining or producing income from property or a business of the taxpayer. ’ ‘ The undisputed facts are as follows: In the case under consideration, two units of this fleet, namely S.S. ... The issue under consideration is a repetition, I would be tempted to say a replica, of the Mont ship Lines Ltd. case, [1954] EX. ... The evidence reasonably satisfied the Court that imperative considerations of maintenance and navigation, nowise related with the contractual terms, necessitated the expenditures incurred for surveys and repairs, and also that, owing to conditions inherent to similar undertakings, the ships persisted during the home crossing, as related above, in the income earning business of the respondent. ...