Search - consideration

Before finding, in light of evidence that the two brothers worked together very well as a team and that the younger brother made a valuable contribution to the business, that the amount of remuneration paid to him was not unreasonable, Cattanach J. stated (p. 5216) that: "It is not a question of the Minister or this Court substituting its judgment for what is a reasonable amount to pay, but rather a case of the Minister or the Court coming to the conclusion that no reasonable businessman would have contracted to pay such an amount having only the business consideration of the appellant in mind. ...

.)-- summary under Financial Service Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Financial Service The Minister assessed the applicant, a mutual fund manager, on the basis that a payment to it by mutual funds of deferred sale charges received by the mutual funds from redeeming investors represented consideration for taxable supplies of services made by the applicant to the mutual funds. ...

Customs & Excise Commissioners, [2001] BTC 5083 (HL)-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply Fees which the Appellant received from credit cardholders were found to be consideration for a single supply of insurance services. ...

.)-- summary under Rectification & Rescission Summary Under Tax Topics- General Concepts- Rectification & Rescission The Minister assessed the applicant, a mutual fund manager, on the basis that a payment to it by mutual funds of deferred sale charges received by the mutual funds from redeeming investors represented consideration for taxable supplies of services made by the applicant to the mutual funds. ...

Expense- Contract or Option Cancellation lump sum paid for the cancellation of licence of patents was made for the purpose of relieving of a burdensome annual expense, and was deductible The taxpayer, an oil well testing company, paid $146,000 to the holders of patents which it had been licensed to use for an extended period in testing well liquids in consideration for periodic royalties but which were no longer useful to it because it was now using an improved tool for such testing. ...

Expense- Financing Expenditures bonus payable on temporary mortgage financing of inventory on income account A partnership engaged in the business of buying and selling real estate purchased two properties in 1954, mortgaged the properties and in 1955 sold the properties for consideration that included the assumption by the purchasers of the amounts owing under the mortgages including bonus amounts that were payable to the mortgage lenders. ...

" Stratas J.A. stated (at para. 9) that "nowhere does subsection 220(3.1) mention the year of assessment as a relevant consideration." ...

The Queen, 75 DTC 5371, [1975] CTC 511 (FCTD), aff'd 79 DTC 5186, [1979] CTC 262 (FCA)-- summary under Paragraph 212(1)(d) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d) royalties normally based on user The non-resident taxpayer, a film distributor, which had acquired from another film distributor the distributorship rights for certain films, agreed in consideration for a lump-sum payment to supply copies of those films to the CBC and to grant it for the same period of time the exclusive right to show them on its French-language television network. ...

He went on to state (at para. 52): [T]he Recalma line of cases has sometimes wrongly elevated the "commercial mainstream" consideration to one of determinant weight. ...

Furthermore, considerations of public policy required that breaches of the Bank Act not lead to the invalidation of contracts and other transactions because "to unravel commercial transactions on the basis that a corporate actor breached a statute is to introduce uncertainty into the affairs of individuals and businesses" (p. 6509) and, furthermore, s. 20(1) of the Bank Act (which stated that no act of a bank was invalid by reason only that the act was contrary to the Act) supported the view that Parliament never intended breaches of the Bank Act to render bank transactions null and void. ...