Search - consideration

The Outerbridge and Smith doctrine applied only where s. 56(2) otherwise would be applied to include a taxable benefit that had already been included in the income of the actual recipient of the taxable benefit (para. 46), and did not apply (para. 41): [w]here the recipient of the payment or the transferred property is simply receiving payment in return for adequate consideration (the supply of goods or services).... ...

After finding that the $15,800,000 was a capital receipt which was not income under s. 9 (see s. 9- compensation payments), C Miller J found in applying the mirror image rule that, as the hypothetical consideration which the taxpayer would have received for a hypothetical payment by it of the $15,800,000 would have been the loss of its goodwill (para. 199), which would not have qualified as an eligible capital expenditure, the (actual) $15,800,000 payment received was not an eligible capital amount. ...

His contention, that this transfer (made in consideration for a credit to his shareholder loan account) was not made in the course of commercial activity and was thus not a taxable supply, was directly contradicted by his testimony that his intention when acquiring the equipment was "to make money with it. ...

An analysis which excludes consideration of events and evidence arising after the funds had been put to their original use, would severely limit the exceptional circumstances inquiry. ...

Loss The taxpayer and his associate each received 1/4 of the shares of a petroleum company together with the royalty interest in consideration for guaranteeing 1/2 of the indebtedness of the company to a bank of $125,000. ...

., 75 DTC 5006, [1974] CTC 889 (FCTD)-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) The Crown's theory was that an arrangement, whereunder (a) the majority shareholder ("Fratschko") of a private company ("Huron") acquired the shares in Huron held by a minority shareholder ("Peckham") as the result of the almost immediate default of Peckham on a loan to him by Fratschko, and (b) a contract whereunder a company ("Pelon") owned by Peckham agreed to perform services for Huron, should be regarded as a sale of shares by Fratschko to Peckham for consideration funded by the payments by Huron to Pelon under the service contract. ...

" The court accordingly rejected the taxpayers' argument that s. 68 could not apply to re-allocate an aggregate consideration of $5,850,000 among various classes of property including land, building and equipment which the taxpayers sold. ...

It exercised the option and sold the shares for cash and the other stated consideration, and this gave both the purchase and sale of the shares a trading character rather than acquisition and realization of a capital asset. ...

") that was mostly owned by Chen but in which she held 5% of the common shares and for consideration that in her case was paid in cash. ...

.)-- summary under Paragraph 18(1)(a) Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a) A company, which was in financial difficulty, agreed to pay 20% of its net profits for a four-year period to creditors "in consideration of their giving to the Company the full benefit of their technical and financial knowledge and experience". ...