Search - consideration

An amount received by one person from another, (a) during a period while the payee was an officer of, or in the employment of, the payer, or (b) on account or in lieu of payment of, or in satisfaction of, an obligation arising out of an agreement made by the payer with the payee immediately prior to, during or immediately after a period that the payee was an officer of, or in the employment of, the payer, shall be deemed, for the purpose of section 5, to be remuneration for the payee’s services rendered as an officer or during the period of employment, unless it is established that, irrespective of when the agreement, if any, under which the amount was received was made or the form or legal effect thereof, it cannot reasonably be regarded as having been received (i) as consideration or partial consideration for accepting the office or entering into the contract of employment, (ii) as remuneration or partial remuneration for services as an officer or under the contract of employment, or (iii) in consideration or partial consideration for covenant with reference to what the officer or employee is, or is not, to do before or after the termination of the employment.” ... This right was as much part of the consideration for accepting the office of sales manager and entering into the contract of employment and as much remuneration for his services as an officer or under the contract of employment as any of the payments specified in paragraph 1 of the agreement. ... It can, therefore, be reasonably regarded as having been received by the appellant as partial consideration for his acceptance of the office of sales manager of Prairie Cereals Limited and entering into the contract of employment of March 28, 1955, or as partial remuneration for his services as an officer of Prairie Cereals Limited or under his contract of employment. ...

The consideration for the 40 shares of GH sold by each of the brothers was $500,000 payable by the issuance to each brother of 100 Class A Common Voting shares of 606103. ... The $1,000,000 consideration was satisfied by the transfer to 606103 of the property GH had received from GBC on the payment of the $1,000,000 dividend. 5.              ... While a taxpayer is permitted to crystallize a capital gain, no non-share consideration should be received that exceeds the less of Paid Up Capital ("PUC") or Adjusted Cost Base ("ACB"). ...

Different considerations apply, in my opinion, to the profits realized from the operations under the first contract and any surplus resulting from the operations under the second contract. ... If the company had succeeded in obtaining letters patent which prohibited the pay- ment of dividends completely and, in addition, the retention of any earned income by the company, different considerations, which need not here be considered, would arise. ... It might be that a dry hole is so related to a producing well that its cost, in one sense wasted, could be said to be incurred ‘‘in respect of’’ a profitable second well; that would be a question to be determined on geological and mining engineering considerations. ...

But in order to determine whether use in the taxation year was principally for the purpose of producing rent or otherwise, other considerations may also be relevant. ... However, the fact that such payments were made is only one consideration of many that help to determine whether or not GCL's use of GCRI space was for the purpose of producing rent. ... Once it was given to GCRI for some consideration, that must inevitably lead to the conclusion that the purpose to which the space was put was to produce rent. ...

Counsel suggested that it is clear from the Notice of Appeal that the Forbearance Agreement was in consideration of putting the land up for sale. ... Part of the consideration was paid by the purchasers by way of promissory notes to the vendor. ... In order to find what this consideration was, we must examine the sequence of events which led to the transfer of ownership. ...

Therefore, counsel submitted that the vitality and scope of business operations was improved and that this was a valid business consideration. ... The courts have recognized the validity of such estate planning and risk minimizing considerations. ... The validity of limitation of liability and of estate planning considerations was also recognized by Decary, J. in Lenco Fibre Canada Corp., supra. ...

The Appellant sold assets and received consideration at fair market value and paid the full market value for the assets. ... The tax considerations that motivated the arrangement by itself do not by themselves bring it within the ambit of subsection 245(1)3. ... Herein, title to the assets passed from the Appellant to Wascana for valid consideration. ...

The item of $32,500 in another connection has already been the subject of consideration by Fournier, J., in M.N.R. v. ... In paragraph 4 of the receipt, release and discharge (A-5) reference to an additional consideration of $32,500 is made in the following terms: ‘‘In consideration of the termination of the Agreement between the parties and of the assumption by the Second Parties of the undertaking, the Second Parties agree to pay to the First Parties the sum of $32,500 which the First Parties acknowledge to have received to their satisfaction at the execution hereof and whereof quit.” ... In my opinion, any evidence to the contrary notwithstanding, the main consideration for which the Schouelas undertook to pay the sum of $32,500 was to break a deadlock of their own creation and to obtain absolute control not only of the appellant company but also of Meteor-Century Builders Inc. ...

This is because, in my respectful view, the Judge erred in law by failing to give sufficient consideration to the relevant provisions of the Income Tax Act. ... No duty of care can arise from the issuance of an identification number in this circumstance. [41]            This leaves for consideration the alleged duty of care to warn the plaintiffs. ... [emphasis added] [44]            In my view, this policy consideration applies to a duty of care to warn against investment in an improvident or suspect tax shelter. ...