Search - consideration

23 October 2017- 12:26am Findmypast – Inner House of the Court of Session finds that the time of a supply of services was accelerated by prepayment only where the services were precisely identifiable Email this Content ETA s. 152(1) provides that GST/HST for a taxable supply becomes payable if the consideration is prepaid. However, ETA s. 168(6) provides that where the value of consideration for a taxable supply is not yet ascertainable, there is a corresponding deferral of the date on which the related GST/HST becomes payable. ...

(iii)(B) of Paragraph N that “the disposing corporation [FA1] receives no consideration for the share [of FA2] other than property that was, immediately before the merger, owned by the issuing corporation [FA2] and that, on the merger, becomes property of the new corporation [FA1].” ... [Thus] the property of FA3 would be received by FA1 as consideration for the shares of FA2. ...

8 January 2018- 1:08am CRA rules that the purchase of an IP royalty gives rise to non-creditable GST/HST to the investor unless there is a specified minimum royalty Email this Content A Canadian registrant (Investor) enters into an agreement with a Canadian corporation (Corporation 1) under which it pays lump sums in consideration for the right to receive monthly royalties calculated as a percentage of intellectual property (IP) related revenue streams of Corporation 1. CRA ruled that the lump sums so paid are consideration for the taxable supply to Investor of intangible personal property (the right to the royalty payments). ...

For example, Father transfers shares of Opco (a small business corporation whose shares are eligible for the CGE) to his children in consideration for a note that is payable over 10 years, claims the capital gains reserve, but does not claim the CGE. The children transfer the Opco shares to a new Holdco in consideration for a note of Holdco, with a view to Opco dividends funding note repayments. ...

He further found that “there has been an evolution in the doctrine of consideration in the context of contract modifications,” so that now “when parties to a contract agree to vary its terms, the variation should be enforceable without fresh consideration, absent duress, unconscionability, or other public policy concerns.” ...

Newey LJ essentially found that Adecco was not paying the temps as agent for the clients, so that the full consideration received by it from the clients was subject to VAT rather than just the “commission” earned by it. ... Summary of Adecco UK Ltd & Ors v Revenue & Customs [2018] EWCA Civ 1794 under s. 123(1) – consideration. ...

There was a three-party exchange under which the Maxar Canada shareholders transferred their shares to a newly-formed B.C. unlimited liability company subsidiary of Maxar Canada (“AcquisitionCo”); a newly-formed Delaware subsidiary of Maxar Canada (“Maxar U.S.”) issued shares to the former Maxar Canada shareholders in consideration for the transfer to it of Maxar Canada in 1; and, AcquisitionCo issued common shares to Maxar U.S. in consideration for the issuance by Maxar U.S. in 2. ...

Supreme Court rectifies a sale agreement to turn it into a 2-step sale that no longer generated a s. 84.1 dividend Email this Content The executed documents indicated that an individual (Thomas) sold his shares of a corporation to the Newco of his brother (Michael) in consideration for a promissory note of the Newco. ... Supreme Court for a rectification order redoing the written agreement to provide that Thomas sold his shares to Michael directly for a promissory note, and that there was an immediate on-sale by Michael of those shares to his Newco in consideration for it assuming the promissory note. ...

29 April 2019- 11:12pm A pipeline where there are non-resident beneficiaries might use high-PUC shares, not a note Email this Content A post-mortem pipeline is normally effected by the estate transferring its shares of Opco (whose adjusted cost base, but not their paid-up capital, was stepped-up on death) to a new a Holdco in consideration for a Holdco note (which then is gradually paid off following a subsequent amalgamation of Opco and Holdco). ... Ss. 212.1(6)(b) and 212.1(1.1)(a) would deem Holdco to pay a pro rata (1/2) dividend to X, i.e., ½ of the excess of the note consideration over the Opco PUC. ...

In finding that the 60% retained by the Recipient was not consideration for a taxable supply made by it, CRA stated The terms of the contract clearly established that during the term of the contract, all patients treated by the [Mr. ... Thus, the contract terms do not permit a conclusion that the portion of the net revenues retained by [PC] represented consideration for a supply. ...