Search - consideration

MNR, 59 DTC 1102, [1959] CTC 172 (Ex Ct)-- summary under Computation of Profit Summary Under Tax Topics- Income Tax Act- Section 9- Computation of Profit considertion paid for land was par value of shares issued The original shareholders of the taxpayer had transferred raw land (which they had valued at $355,000, based on an estimated selling price for building lots minus a 45% discount for estimated expenses) to the taxpayer in consideration for the issue of shares having a par value of $200,000. ... Cameron J. held (p. 1108) that: "The consideration paid by the appellant for the... lots was the par value of the shares issued and nothing more. ... " The cost of the lots was not affected by the contemporaneous transfer of additional land to the taxpayer in consideration for shares, with a view to donating such land to the University of Manitoba in order to enhance the value of the land retained by the taxpayer. ...

Approximately a year later, while the controlling shareholder was negotiating an asset sale by Prairie Cereals, the taxpayer agreed with Prairie Cereals and the shareholder that in consideration for the payment to him of $34,600 upon completion of the sale, he would release Prairie Cereals and the shareholders from the terms of the previous agreement. ... That pre-emptive "right was as much part of the consideration for accepting the office of sales manager and entering into the contract of employment and as much remuneration for services as an officer or under the contract of employment as the regular monthly remuneration (p. 1365). Accordingly, the $34,600 could reasonably be regarded as having been received by the taxpayer as partial consideration for his acceptance of the office of sales manager, or as partial remuneration for services as an officer of Prairie Cereals or under his contract of employment. ...

MNR, 64 DTC 5041, [1964] CTC 40 (Ex Ct), briefly aff'd 66 DTC 5100, [1966] R.C.S. 354-- summary under Proceeds of Disposition Summary Under Tax Topics- Income Tax Act- Section 13- Subsection 13(21)- Proceeds of Disposition The taxpayer disposed of depreciable property to a corporation controlled by him in consideration for the assumption of a mortgage and the issuance of common shares having a stipulated value that was substantially less than the amount for which they were sold shortly thereafter by the taxpayer. The proceeds of disposition of the depreciable property were found to approximate the fair market value of the property, as established by the subsequent transaction, rather than being based on the stipulated consideration. ...

[and] is wide enough to embrace all types of voluntary processes or acts by which a property of one person may become vested in another without regard for the reason or occasion for such processes or acts and regardless also of whether the processes undertaken or the act is done for consideration in whole or in part or for no consideration at all. ...

MNR, 65 DTC 5138, [1965] CTC 225 (Ex Ct), briefly aff'd 67 DTC 5196 (SCC)-- summary under Paragraph 20(1)(e) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e) In connection with a rights offering the taxpayer, in addition to paying a commission to the underwriters in consideration for their services as dealers in securities, paid a fee for their services rendered in forming and managing a soliciting dealers group and in consideration for their agreement to maintain an orderly market, and paid a further fee which was alleged to be for the administrative and clerical services of the dealers in processing the rights tendered by shareholders, but which was described in the relevant agreement as a commission for each common share which a soliciting dealer procured. ...

., 53 DTC 1036, [1953] CTC 37 (Ex Ct)-- summary under Legislative History Summary Under Tax Topics- Statutory Interpretation- Legislative History Any doubt as to the meaning of s. 6(1)(o) was "entirely removed by a consideration as to how the law stood and the state of things existing at the time para. ...

MNR, 64 DTC 5041, [1964] CTC 40 (Ex Ct), briefly aff'd 66 DTC 5100, [1966] R.C.S. 354-- summary under Subsection 20(4) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(4) After finding that the taxpayer has sold depreciable property for proceeds of disposition in excess of the original capital cost, Dumoulin J. noted that, although a portion of the consideration represented a mortgage which would not be paid over an extended period of time: "The deferral of these debts creates no eventual prejudice to the appellant-vendor in the event of the financial ruin of the purchaser, since section 11(3d)... assures the former a sufficient amount of protection. ...

.)-- summary under Incurring of Expense Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Incurring of Expense The taxpayer made an interest-bearing loan of $50,000 to some customers (two related trucking companies) in consideration inter alia for their agreement to purchase all their tires and tubes from the taxpayer. ...

Repairs or Running Expense In finding that the cost of a replacement engine for a power shovel was a capital expenditure, Cameron J. stated (at p. 1118) that he was influenced by the magnitude of the outlay (which exceeded the undepreciated capital cost of the shovel as a whole) and by the consideration that "the engine clearly was a marketable entity, readily detached from the power shovel by the removal of a few bolts, and capable of being used for other purposes". ...

Dorchester paid the taxpayer the lump sum of $75,000 in consideration for the taxpayer giving up its rights under the lease including the right to receive the remaining six annual rentals of $110,041 per year. ...