Search - consideration

The King, 2025 TCC 61-- summary under Subsection 182(1) Summary Under Tax Topics- Excise Tax Act- Section 182- Subsection 182(1) s. 182 did not apply to a payment made in consideration for modifying an agreement to optionally extend its term BC Hydro, which had entered into an electricity purchase agreement (EPA) with an independent power producer for the supply of electricity at a particular project in BC, agreed with that supplier that the EPA would be amended to provide, inter alia, that in consideration for the payment by BC Hydro of the sum of $8.5 million by the date 30 days after the project became operational, BC Hydro would have the option to extend the term of the EPA by a further 16 years. ... In rejecting this submission, Bocock J found that the payment was consideration for the optional term extension and therefore was consideration for a "taxable supply per se" (para. 73). ... However, Bocock J. further indicated obiter that he would have considered the payment to have been paid otherwise than as consideration for "the supply" under the EPA, i.e., it was not consideration for the supply thereunder of electricity. ...

The Queen, [1997] GSTC 85 (TCC)-- summary under Subsection 232(3) Summary Under Tax Topics- Excise Tax Act- Section 232- Subsection 232(3) rebates reduced consideration but no obligation to rebate GST The registrant, when it paid volume rebates to customers, was found by McArthur J to be thereby reducing the consideration on the previous sales for purposes of s. 232(2) (stating at p. 85-5 that "volume rebates...[are] a mechanism which reduces the consideration paid by the customer to the manufacturer"). ... Words and Phrases consideration ...

Angers J found that for purposes s. 168(6) the consideration receivable bhy the appellans for their work did not become ascertainable for so long as a significant contractual dispute with Enbridge was resolved, stating (at para. 51) that: [A]lthough invoices may have been tendered to Exelon, the exact value of the consideration had not been determined prior to this second [settlement] agreement. The value of the consideration was in dispute from the time the requests for payment were made and the invoices were issued. It was therefore impossible to establish the tax owing until the exact amount of the consideration was ascertained, which is what the settlement agreement did. ...

That means that the recipient of the consideration must own an interest in the land in which the natural resources are found. Since neither Sulpetro nor RBC ever held an interest in the Buchan Field and neither was ever in a position to confer a right to work the minerals in the North Sea, the consideration they received cannot have been pursuant to a right to receive consideration for the right to work their land. ... Payments made for the assignment or transfer of rights conferred on someone by the owner of the rights are not "consideration for" the right to work. ...

Accordingly, s. 160 did not apply to the transfer in 3 above as full consideration was received. ... It is precisely “at the time” of transfer that the consideration proffered “at such time” was deficient …. Accordingly, there was a transfer of property for insufficient consideration to which s. 160 applied at the time of the set-off transaction. ...

In rejecting this submission and finding that s. 118.1(13)(a) deemed there to be no gift, Rossiter CJ stated (at paras. 46, 59): The consideration could not be both the Promissory Note and the corresponding cash payments. ... The only consideration received at the time of the disposition was the Promissory Note. … Parliament does not want to grant a tax credit where the donor is not impoverished and the charity is not enriched. ... Words and Phrases consideration receive payment ...

Archambault J. affirmed the Minister's position that the amount of these professional fees was "consideration" received by the taxpayer. ... Archambault J. stated (at para. 16): I accept the definition of consideration laid down in Currie and referred to by Judge Lamarre in Republic National Bank, above, and the definition in Black's Law Dictionary, according to which "consideration" can encompass "[t]he inducement to a contract... ... Words and Phrases consideration ...

In rejecting the taxpayer’s submission that she had provided full consideration for the transfer through her agreement to marry CC and care for him, Owen J stated (at paras. 82, 83): There is no evidence of a legally binding agreement between CC and the Appellant identifying marriage as consideration given by the Appellant for the Property, and there is no evidence of the fair market value of such a promise. A promise to marry that had already been fulfilled by the Appellant at the time of the Transfer cannot be consideration given by the Appellant for the Property at the time of the Transfer. … The Appellant continued to work outside the home after marrying CC and had no special training qualifying her to care for CC in a manner beyond the level of care that might be expected of any spouse. Further, there is no evidence of a legally binding agreement identifying future care of CC as consideration for the Property, and there is no evidence regarding the value of such future care. ...

La Reine, 2008 DTC 3787, 2007 TCC 206, aff'd 2008 DTC 2471, 2008 FCA 103-- summary under Canadian Manufacturing and Processing Profits Summary Under Tax Topics- Income Tax Act- Section 125.1- Subsection 125.1(3)- Canadian Manufacturing and Processing Profits transfer of waste material for no consideration received back other than assumption of environmental obligation was not a sale The taxpayer, who in consideration for a charge made by it to its customers, sorted, consolidated and reshipped industrial waste produced by them, in consideration for fees paid by them, was found to have under the Quebec Civil Code contracts for services with them rather than contracts of sale, so that it was not eligible for the allowance, given that the definition of sale in the Civil Code required that monetary consideration be received for a sale. ...

The taxpayer contended that she paid valuable consideration pursuant to a "deed of partition," dated 20 April 1989, to change the distribution of their property between them under the "change of matrimonial regime" provisions under the Civil Code. However, the house was transferred under a separate deed of sale dated 30 June 1988, under which the taxpayer was to pay $1 and "other good and valuable consideration."" In rejecting the taxpayer's contention, Angers J. found that: the deed of sale was not part of any matrimonial regime, given inter alia that it contained a provision that specifically denied that there was a matrimonial regime; the consideration was not fixed at the time of transfer; and no consideration was in fact paid, and no change in matrimonial regime took place. ...