Search - consideration

The agreement signed by the taxpayer indicated that the income tax payable resulting from the proposed change would be subject to interest at the prescribed rate, there was no incorrect advice given by an auditor that the reassessment would not result in income tax being owing, the Minister did not act in bad faith, and there was no breach of the principles of fundamental justice or consideration of extraneous or irrelevant factors. ...

Whether the tenant inducement payment represented a reduction in rent or consideration for the taxpayer's assumptions of these revenue account obligations, it should be included in its income. ...

Profit- Real Estate high leverage not significant if shareholder loans Before going on to find that the taxpayer did not realize a capital gain from the disposition of a farm property, Sharlow J. noted (at p. 5706) that although "the method of financing the purchase of property may be important in distinguishing capital from income if, as a practical matter, the property is so burdened with debt that the owner is unlikely to recover its costs without selling it", here this was not as important a consideration because, although there was 100% debt financing, this was provided by way of shareholder loans of which over 30% did not bear interest and had no fixed repayment terms. ...

"Had the plaintiff paid double the price in order to 'gain security of supply'... the agreement with the benefits as consideration would surely precipitate an enquiry as to whether it was reasonable or not. ...

Profit- Debt/ receivables The taxpayer, who was the general manager of a corporation ("HSS"), acquired debt of another corporation ("LTM") for consideration that was found by the Court to be nominal. ...

The Queen, 97 DTC 517 (TCC)-- summary under Computation of Profit Summary Under Tax Topics- Income Tax Act- Section 9- Computation of Profit cost of shares acquired in consideration for largely worthless loan obligation was nil In connection with the acquisition of the shares of a corporation ("LTM") by another corporation ("HSS") of which the taxpayer was the general manager, the taxpayer used the proceeds of a daylight loan to advance money to LTM, LTM loaned the same sum to its shareholders, the shareholders loaned the same sum to the taxpayer on a non-interest bearing basis with the principal not being due for approximately 100 years, and the taxpayer used the sum to pay off the daylight loan. ...

("Western Electric") provided a mass of confidential technical information to a subsidiary of Bell Canada ("Northern") in consideration for payments calculated as a percentage of the sales price of products manufactured with the use of that information. ...

Kempo TCJ. found that what then was s. 245(2) did not apply to these transactions (and to similar loss utilization transactions) because no "benefit" could arise to the taxpayer from its purchase of the shares of the holding company where it had provided fair market value consideration. ...

Before finding that the payment of such amounts by the taxpayer in consideration for the cancellation of the options was deductible notwithstanding s. 18(1)(b) on ordinary principles, Joyal J. implicitly accepted the submission of the taxpayer's counsel that s. 7(3) "has no application as no issue of shares took place" (p. 6036). ...

In consideration of charging a customer $1.00 more for the replacement of a muffler, the taxpayer undertook to replace a defective muffler free of charge as long as the purchaser remained owner of the car in which the muffler had been installed. ...