Search - consideration

The consideration paid by Ontra-Desar was stated to include the discharge by it of the second mortgage liability of Clearstream to the taxpayer including the arrears interest. ...

The Queen, 2015 TCC 191 (Informal Procedure)-- summary under Tax Shelter Summary Under Tax Topics- Income Tax Act- Section 237.1- Subsection 237.1(1)- Tax Shelter shelter based on potential interests rather than what actually was acquired The taxpayers entered an arrangement with a corporation ("Blue Hill") in order to deduct Canadian resource expenditures from income: the taxpayers paid $2 for an option to acquire an interest in mineral claims owned by Blue Hill; in exercising the options, the taxpayers agreed to engage Blue Hill to incur CRE on their behalf in consideration for promissory notes Lyons J found (at para. 42) that the taxpayers were not required by Blue Hill to pay the promissory notes. ...

., 99 DTC 5494, [1999] 2 CTC 133 (FCA)-- summary under Subsection 122.3(1) Summary Under Tax Topics- Income Tax Act- Section 122.3- Subsection 122.3(1) provision of services by governement for fees was an undertaking and business The taxpayer was employed by the New Brunswick Department of Agriculture and Rural Development to assist in establishing and administering several dairy farms in Malawi, in consideration for which the Department received fees that were intended to cover its cost, cover overhead and make a small profit. ...

., a business The taxpayer was employed by the New Brunswick Department of Agriculture and Rural Development to assist in establishing and administering several dairy farms in Malawi, in consideration for which the Department received fees that were intended to cover its cost, cover overhead and make a small profit. ...

Berg, 2014 DTC 5028 [at at 6664], 2014 FCA 25, rev'g infra-- summary under Total Charitable Gifts Summary Under Tax Topics- Income Tax Act- Section 118.1- Subsection 118.1(1)- Total Charitable Gifts intent to be enriched from tax credits The taxpayer purchased timeshare units for cash equaling their fair market value and issued bogus promissory notes for nine times the units' fair market value as purported additional consideration for the units. ...

The Queen, [1999] GSTC 119 (TCC)-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply cancellation charges were consideration for a supply The registrant served retail travel agencies by booking and purchasing airline tickets for the agencies' customers, which resulted in the receipt by it of commissions from the airlines. ...

Before finding that this $15 charge was consideration for a financial service, Archambault J rejected (at para. 22) a submission of the registrant that it claimed payment from the credit card issuers as mandatary of the retail agencies: It was not established that Skylink had agreed with the retail agencies that it would act as their mandatary by requesting payment from the issuers. ...

.)-- summary under Income-Producing Purpose Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose deductible lump-sum cancellation of profit participation payment The taxpayer, which provided management services to its two subsidiaries which, in turn, ran a cellular phone system and sold cellular telephones, agreed with an American cellular telephone company ("Millicom") to pay an annual fee equal to 10% of its consolidated pre-tax profits for 15 years in consideration for the supply to the taxpayer from time to time at its request with future know-how. ...

Expense- Contract or Option Cancellation The taxpayer made a lump-sum payment to terminate an agreement under which an American company agreed to supply the taxpayer from time to time at its request with future know-how in consideration for an annual fee equal to 10% of the taxpayer's consolidated pre-tax profits for 15 years. ...

The Queen, 2014 TCC 375-- summary under Evidence Summary Under Tax Topics- General Concepts- Evidence evidence of surrounding circumstances including income tax objective relevant to contract interpretation Before finding that the consideration for management services provided by a mutual fund trust manager to the trusts did not include special rebate distributions that the trusts were obligated to pay to large unitholders, and before finding (at paras. 72, 76) that the surrounding circumstances established that the parties intended to follow an ATR-65 structure, which required that the special distributions satisfy obligations of the trusts rather than the manager, Campbell J stated (at para. 45): [E]vidence respecting surrounding circumstances… will be limited to the objective evidence of the background facts at the time of formation and execution of the contract. … As noted in Sattva [2014 SCC 53], considering surrounding circumstances, as an interpretative aid, does not offend the parol evidence rule, which excludes evidence of the parties' subjective intentions and precludes considering evidence outside the words of the contract that would result in varying the contract in some manner. ...