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Technical Interpretation - Internal

12 January 2017 Internal T.I. 2016-0636911I7 - Standby Charge - PST and the cost of an automobile

The primary consideration in those interpretations was the connection to a legal or contractual obligation to pay an amount, as interpreted by the court in Redclay Holdings Ltd v The Queen, 96 DTC 1207 (General Procedure). ... Rather, the wording of the legislation is such that the tax is likely determined pursuant to a specific calculation which gives consideration to the value of the trade-in. For GST/HST purposes, under paragraph 153(4)(c) of the Excise Tax Act (“ETA”), if a purchaser is not required to collect tax in respect of the trade-in, the value of the consideration for the automobile is deemed to be equal to the amount, if any, by which the value of the consideration for that automobile exceeds the amount credited to the purchaser in respect of the trade-in. ...
Technical Interpretation - External

11 February 2000 External T.I. 1999-0004935 - ACB OF PROMISSORY NOTE REC'D FROM SPOUSE

Principal Issues: If the taxpayer receives a demand non-interest bearing promissory note as consideration for property transferred to a spousal trust, will the adjusted cost base of the promissory note be equal to the stated value of the note (which should also be equal to its fair market value)? ... Your view- Questions 1 and 2 You are of the view that subsection 73(1) will continue to apply since subsection 73(1) does not preclude a taxpayer from receiving a note or similar debt instrument as consideration for the transferred property. ... In our view, this provision applies whether or not the taxpayer receives a promissory note or other consideration for the property transferred. ...
TCC

Garron Family Trust v. The Queen, 2009 DTC 1568, 2009 TCC 450, aff'd sub nom St. Michael Trust Corp. v. The Queen, 2010 DTC 5189 [at 7361], 2010 FCA 309, aff'd sub nom Fundy Settlement v. Canada, 2012 SCC 14

Newly-issued common shares of PMPL were then issued for nominal consideration to newly-incorporated Canadian holding companies. The Trusts each subscribed for shares in the holding companies for nominal consideration. ...     [208]   Another relevant consideration is that St. Michael was, from 1998 to 2002, an arm of an accounting firm. ...
Ruling

2002 Ruling 2002-0161323 - Split up Butterfly

The two promissory notes issued by TC1 will be referred to as the "TC1 Consideration Notes" and the two promissory notes issued by Subco2 will be referred to as the "Subco2 Consideration Notes". ... In connection with the winding-up of DC, DC will distribute the TC1 Consideration Notes and the TC1 Redemption Note to TC1 and the Subco2 Consideration Notes and the Subco2 Redemption Note to TC2. As a result of the assignment and distribution of the TC1 Consideration Notes and the TC1 Redemption Note to TC1, the obligations under each such promissory note will be cancelled. ...
SCC

Sutton Lumber and Trading Co. Ltd. v. Minister of National Revenue, 53 DTC 1158, [1953] CTC 237, [1953] 2 S.C.R. 77

(a) To sell or dispose of the undertaking of the company or any part thereof for such consideration as the company may think fit... ’ ’ and (b) To sell, improve, manage, develop, exchange, lease, dispose of, turn to account, or otherwise deal with all or any part of the property and rights of the company.” ... On October 10th, 1911, at the annual meeting of the shareholders held at Victoria, the directors were authorised to sell for such consideration as they thought fit the three Crown granted lots in the Nootka District and the company’s leasehold holdings in that area. ... It was impossible to buy machinery during the war years but, after the sale in 1946, the company had been endeavouring to locate a suitable mill site in the vicinity of the Alberni Canal and, in the year 1948, purchased a property at Ucluelet in the Clayoquot District which had been used as an airport during the war and upon which there were hangars and numerous other buildings, of which use might be made when establishing a mill, the consideration for the purchase being approximately $60,000.00. ...
FCA

Canada v. General Motors of Canada Limited, [2009] GSTC 64, 2009 FCA 114

In each case, GMCL is the person liable under the Investment Management Agreement to pay both the consideration for the supply of services by the investment managers and the GST payable on such consideration. ...   [41]            What she said, at paragraphs 54 and 57, is the following: 54     Contractually, GMCL is the only party that carried the liability to pay this consideration to the Investment Managers. ... GMCL has satisfied this requirement under subsection 169(1) since it is the only person liable to pay the consideration for the supply of services of the Investment Managers under the relevant Agreements. ...
SCC

Farmers Mutual Petroleums Limited v. Minister of National Revenue, 67 DTC 5277, [1967] CTC 396, [1968] S.C.R. 59

The transfer of the shares was then completed for a consideration of $197,114,358, as fixed by the Court. ... There was no equivalent to paragraph (b) under consideration in that case. ... In essence, the main purpose and the result of the litigation was to improve the consideration received for the disposition of a capital asset. ...
TCC

BBM Canada (formerly BBM Bureau of Measurement) v. The Queen, 2008 DTC 4129, 2008 TCC 341

I agree that, in appropriate cases, these may be reasonable and relevant considerations, though they cannot all be requirements, they must be weighed appropriately in the circumstances of each case, and none will be determinative. However, in this case their consideration does not lead me to conclude BBM has an unstated profit purpose ...   [52]     Caution needs to be taken with the Bulletin’s consideration of whether the operations are operated in a normal commercial manner. ...
FCA

Rich v. Canada, 2003 DTC 5115, 2003 FCA 38

If future considerations are only speculative, they would not be material in an assessment of whether a past due debt is collectible. [15]            Nor is it necessary for a creditor to exhaust all possible recourses of collection. ... However, the predominant consideration will be the ability of the debtor to repay the debt in whole or in part. ... Although the Tax Court Judge referred to some of these considerations early in his reasons, they do not appear to have been taken into account in his analysis of whether the debt was bad on December 31, 1995. 1.         ...
FCTD

First Fund Genesis Corp. v. The Queen, 91 DTC 5361, [1991] 2 CTC 14 (FCTD)

("Dell") issued debentures to the plaintiff for a total consideration of $7,500,000. ... That debenture was issued to the plaintiff in consideration for a purchase price of $3,871,600. ... Grinling (21) where, after holding that, in the context there under consideration, the meaning of the word was equivalent to “considerable, solid or big", he said: “Applying the word in this sense, it must be left to the discretion of the judge of fact to decide as best he can according to the circumstances of each case.... ...

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