Search - consideration

MNR, 64 DTC 5041, [1964] CTC 40 (Ex Ct), briefly aff'd 66 DTC 5100, [1966] R.C.S. 354-- summary under Proceeds of Disposition Summary Under Tax Topics- Income Tax Act- Section 13- Subsection 13(21)- Proceeds of Disposition The taxpayer disposed of depreciable property to a corporation controlled by him in consideration for the assumption of a mortgage and the issuance of common shares having a stipulated value that was substantially less than the amount for which they were sold shortly thereafter by the taxpayer. The proceeds of disposition of the depreciable property were found to approximate the fair market value of the property, as established by the subsequent transaction, rather than being based on the stipulated consideration. ...

The Queen, [2006] GSTC 103, 2006 TCC 437-- summary under Subsection 153(1) Summary Under Tax Topics- Excise Tax Act- Section 153- Subsection 153(1) lease consideration not nominal because of property tax obligation The appellant leased a transit system to another municipal transit entity for rent of $1 per year, but with the lessee being obligated to pay municipal taxes imposed on the leased premises (which amounted to around $2 million per year). C Miller J noted that this obligation represented non-nominal consideration for the lease. ...

Leslie, 75 DTC 5086, [1975] CTC 155 (FCTD)-- summary under Subsection 85(1) Summary Under Tax Topics- Income Tax Act- Section 85- Subsection 85(1) On the incorporation of a business the agreement purported to transfer net assets having a value of $5,078 and goodwill having a value of $20,222 in consideration of the issuance of $10,000 of treasury shares and a promissory note in the principal amount of $15,300. ... It was held that there was some consideration for the promissory note since the promissory note was not expressed in the agreement to be given for any part of the goodwill but merely for part of the balance of the purchase price of all the assets sold. ...

He noted (at p. 6078) that: "Those words appear to me to be sufficiently broad as to include an amount received as consideration for the surrender of rights that are thereby extinguished, in contrast with an amount received as consideration for rights that are 'transferred' and, as such, that remain in existence. ...

., the portion of premium revenues that were not retained in the segregated funds) were found not to be consideration for a taxable supply given that the fact that it managed the segregated funds did not necessarily imply that the segregated funds must be treated as paying consideration for those management services. ...

The Queen, 2009 DTC 1394 [at at 2155], 2009 TCC 597-- summary under Subsection 74.1(2) Summary Under Tax Topics- Income Tax Act- Section 74.1- Subsection 74.1(2) The taxpayer and her son transferred real estate on a rollover basis to a partnership in consideration for Class A units of the partnership having a redemption value, subject to a price adjustment clause, of approximately $1.25 million for each of them. Several days later, the partnership issued Class C units to a family trust for consideration of $100. ...

The Queen, 2002 DTC 1222 (TCC), rev'd 2003 DTC 5225, 2003 FCA 128-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition The taxpayer and corporations controlled by him disposed of shares of three corporations engaged in manufacturing plastic moulds and caps and received, in addition to sale proceeds for the shares, lump sums (payable in instalments) in consideration for giving non-compete covenants. McArthur T.C.J. characterized the non-compete payments as consideration for the disposition of the right to compete with the purchaser, with the result that they represented capital gains. ...

The Queen, 2002 DTC 1222 (TCC), rev'd 2003 DTC 5225, 2003 FCA 128-- summary under Paragraph (e) Summary Under Tax Topics- Income Tax Act- Section 54- Disposition- Paragraph (e) The taxpayer and corporations controlled by him disposed of shares of three corporations engaged in manufacturing plastic moulds and caps and received, in addition to sale proceeds for the shares, lump sums (payable in instalments) in consideration for giving non-compete covenants. McArthur T.C.J. characterized the non-compete payments as consideration for the disposition of the right to compete with the purchaser, with the result that they represented capital gains. ...

Robson (1942), 15 TC 33 HL-- summary under Paragraph 6(3)(e) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(3)- Paragraph 6(3)(e) In finding that a lump sum of £7,000 paid to the taxpayer in consideration for his agreeing, in his contract of employment, to a restrictive covenant, was not taxable as a "profit from the office" of director and manager, Viscount Simon L.C. stated (at p. 41): "The sum of £7,000 is not paid for anything done in performing the services in respect of which Mr. ... The consideration which he has to give under the covenant is to be given not during the period of his employment, but after his termination. ...

"A contract of sale, which is, by definition, a transfer of property for a consideration, cannot be a gift, which is, by definition, a disposition of property without consideration." ...