Search - consideration

Profit- Partnership Interests partnership interest buyback not distribution It was found that a sum of $103,111 paid by a partnership to a retiring partner was consideration for the buying back of his partnership interest rather than an allocation to him of partnership income, including his interest in unbilled work in progress. ...

Notwithstanding submissions of the taxpayers that they regarded their shares as being worth more than $300,000 and that the covenant likely was unenforceable, it was found that the covenant had value to the purchasers and that the payments in consideration of the covenant were employment income. ...

The Queen, 2009 DTC 912, 2009 TCC 295-- summary under Payment & Receipt Summary Under Tax Topics- General Concepts- Payment & Receipt no evidence of payment through off-settable cash Promissory notes owing by the taxpayers, which were consideration for their acquisition of units of a limited partnership, provided that the interest thereon was to be paid by way of set-off against distributions otherwise payable by the partnership to the taxpayers. ...

.)-- summary under Paragraph 12(1)(x) Summary Under Tax Topics- Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(x) Before going on to find that a lump sum received by an actor in consideration for his covenant not to exercise his vocation for a period of 18 months was a tax-free receipt, Sir Evershed M.R. stated (at p. 145) that "many sums of money received in the course of carrying on a trade, but not as a result of the trade as it was contemplated that it would be carried on in the normal course, may nevertheless be taxable". ...

Canada, [1998] 1 S.C.R. 795, 98 DTC 6334, [1998] 3 CTC 303-- summary under Tax Avoidance Summary Under Tax Topics- General Concepts- Tax Avoidance no business purpose test In finding that the transactions under consideration had successfully avoided the change-of-control provisions of the Act, Iacobucci C.J. stated (at p. 6350) that "it is well established in the jurisprudence of this Court that no 'business purpose' is required for a transaction to be considered valid under the Income Tax Act, and that a taxpayer is entitled to take advantage of the Act even where a transaction is motivated solely by the minimization of tax". ...

Canada, 99 DTC 5799, [1999] 3 S.C.R. 804-- summary under Public Policy Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Public Policy In finding that considerations of public policy should not enter into a determination as to whether fines or penalties were deductible in computing income, Iacobucci J. stated (at p. 5811) that doing so would "place a high burden on the taxpayer who is to engage in this analysis in filling out his or her income tax return and would appear to undermine the objective of self-assessment underlying our tax system". ...

Bocock J found that the deposits were a transfer for the purposes of s. 160(1), and that the undertaking and understanding that the taxpayer would not access the deposited funds did not represent valuable consideration: "her mere moral obligation not to access the funds does not create a recognizable legal prohibition from doing so" (para. 13). ...

Profit- Copyright The taxpayer, together with another senior government lawyer, agreed with a publisher to compile an encyclopedia of legal forms for total consideration of $17,500 payable in instalments over such period of time as it might take them to prepare and complete the work. ...

The Queen, 78 DTC 6452, [1978] CTC 646, aff'd 81 DTC 5050 [1981] CTC 75 (FCA)-- summary under Retroactivity/Retrospectivity Summary Under Tax Topics- Statutory Interpretation- Retroactivity/Retrospectivity The community of movables and acquests established in Quebec in 1971 was held not to have retroactive effect to the date of the taxpayer's marriage in 1939 in light of "a fundamental principle of law that, unless otherwise stated, an enactment is presumed not to have retroactive effect" and the consideration that "from a practical standpoint, giving a new regime acquired later in life retroactive effect to the date of marriage would plunge society into a state of chaos. ...

Purpose, while it may involve a subjective element, must be largely determined on the basis of objective considerations. ...