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CIBC argued that these fees were (1) consideration for intangible personal property (the Miles) that were supplied by Aeroplan, and (2) that such property was exempted from GST as being a supply of “gift certificates.” ... He stated: The issuance of Aeroplan Miles to CIBC’s customers cannot be elevated to be the predominant supply when such issuance of Aeroplan Miles is not even mentioned in the referral activities for which the consideration was payable. … The legal relationship between CIBC and Aeroplan is defined by the agreement between these two parties. ... Stratas JA went on to indicate that the Miles acquired by CIBC were deemed under the gift certificate rule (ETA s. 181.2) not to be a supply, so that the fees were not subject to GST, stating: In the commercial world, Miles function as gift certificates. … They are an exchange device because they may be used as consideration for property or services in the same way as money or a gift certificate. ...

Furthermore, however, they will jointly purchase all the Filo shares for consideration consisting of BHP and Lundin Mining cash of around $1.908 billion and $0.859 billion, respectively, and the issuance by Lundin Mining of around 92.1 million shares. ... The plumbing to accomplish the final structure of JVCo holding all of Filo and Josemaria in general involves: BHP lending both the Filo acquisition cash and JV cash to Lundin Mining and receiving the "BHP notes"; Lundin Mining then acquiring all the Filo shares (not already held by BHP and it) for the agreed cash and share consideration; Lundin Mining then contributing Filo (through intermediate Canadian holding companies) to JVCo in consideration for shares and the assumption of the BHP notes; and BHP converting the BHP notes into JVCo shares (as well as transferring its existing 5% interest in Filo to JVCo for JVCo shares); so that, after the dust settles, JVCo is held on the agreed 50-50 basis. ...

Two days after the ARQ had issued a statement of account to Construction LMA showing that it had failed to remit over $527,000 in sales taxes and employee source deductions, Larocque transferred his residence, which was mortgaged to a bank to secure debt owing to the bank by Construction LMA, to a newly formed trust (of which he was the beneficiary and one of the two trustees) in consideration for the assumption of the bank debt. ... Tremblay JCQ, noted that, in fact, Larocque had continued to service the bank debt, so that the consideration received by him from the trust for the transfer by him was “purely fictitious” and that the purported assumption of the bank debt was a “sham”. However, the ARQ could not now reverse its assessing position, as “the determination of the value of the consideration must be made at the time of the transfer”. ...

., the cash consideration is converted into an equivalent Mitel share, so that the Exchange Ratio is increased to around 4.3). ... This does not appear to be a raw deal for the option holders as such value of the Aastra shares would reflect the cash consideration, given that shareholder approval would have been achieved. ...

" CRA considers that this exclusion applies where (i) the debt of the taxpayer is settled by the taxpayer transferring assets to a subsidiary in consideration inter alia for an assumption of the debt (with the taxpayer being released) – or (ii) where the debt is not assumed on the asset transfer and the taxpayer instead uses cash consideration received from the subsidiary (funded out of a borrowing by it) to discharge the debt. ...

20 August 2012- 11:44pm Mertrux- UK Upper Tribunal reverses a broad interpretation given to "goodwill" Email this Content The additional amount received by a Mercedes dealer for the early termination of its dealership was found to be consideration for the surrender of a contractual right (giving rise to capital gains treatment) rather than for goodwill (for which rollover treatment was available)- notwithstanding that Daimler-Chrysler (UK) Ltd. arranged for this additional amount to be paid directly to the dealer by the third party purchaser of the dealership. This case could be relevant to the interpretation of s. 167.1 of the Excise Tax Act (no GST on the consideration for the purchase of a business or business division that is attributable to goodwill) and also to the Canadian income tax distinction between a capital gain and an eligible capital amount- although it is hard to be sure about the latter point because following some amendments to get rid of the "mirror image rule" (see Toronto Refiners) that distinction now is utterly circular: under ss. 14(1) and 14(5)- CEC-(E), an eligible capital amount is 1/2 of an amount receivable on capital account in respect of a business that is not included in computing a capital gain; and under s. 39(1)(a)(i), a capital gain does not include gain from the disposition of an eligible capital property! ...

"Acquireco" subsidiary of Hecla (a U.S. mining company) will first acquire all the shares of Aurizon in consideration for cash and directing the delivery of Hecla shares (with the choice between cash and Hecla shares at the Aurizon shareholders' option subject to the overall mix being 65% cash and 35% Hecla shares).  ... The cash consideration will be paid by Hecla directly to the Aurizon shareholders, perhaps so that the Acquireco acquisition can come within the applicable wording of Code s. 368(a)(2)(D).  ...

Killam will then be transferred to a Newco for consideration including an interest-bearing note, followed by their amalgamation, in order to shelter the rental income of the properties now held by Killam through a lower-tier LP. Convertible debentures of Killam (bearing interest of around 5.5%) will simply be assumed by the REIT in consideration for the issuance of a note to it by Killam. ...

24 June 2013- 11:17am New Gold friendly merger with Rainy River is not utilizing a Plan of Arrangement Email this Content New Gold is offering to acquire Rainy River Resources shares (and related shareholder rights plan rights) for per share consideration of $3.83 in cash or (at the option of the Rainy River shareholder) 0.5 of a New Gold share – but with the total consideration (including on a subsequent squeeze-out transaction) fixed at $198 million in cash and 25.8 million New Gold shares, so that some proration is highly likely. ...

He reasoned that the supplier did not accept the government grant as a partial payment of the consideration until the subsequent due date for the invoice, i.e., after the GST had already been triggered on the invoice date. ... The Queen, 2013 FCA 140 under ETA- s. 123(1)- consideration. ...