Search - consideration

The Queen, 2006 DTC 3006, 2006 TCC 256-- summary under Substance Summary Under Tax Topics- General Concepts- Substance In finding that a transfer by the taxpayer of business assets to a partnership in consideration for partnership units and non-units consideration ("boot") should not be recharacterized as a transfer by the taxpayer solely for boot, notwithstanding that the partnership thereafter indirectly distributed cash to the holding-company shareholders of the taxpayer by subscribing for preferred shares, Bonner J. noted that cases cited to him involving a preference for the supposed substance of transactions over their form were contrary to the approach taken by the Supreme Court of Canada in Shell Canada Ltd. v. ...

The payments "were not payments made without consideration and cannot therefore be considered 'gifts'.... [E]ach parent here received a consideration, i.e., the Christian education of his children. ...

Canada, 2009 DTC 5758, 2009 FCA 50-- summary under Subsection 160(1) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1) satisfaction of legal obligation to support family not consideration In allowing her husband to live in the family residence, the taxpayer was not providing consideration at fair market value. ...

Given that advances in excess of $120,000 had actually been made by the taxpayer to the other corporation in varying amounts both before and after the agreement of May 18, 1984, the requirement that "consideration" for $120,000 be issued or granted was met. Words and Phrases consideration ...

Canada, 2001 DTC 5385, 2001 FCA 152-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition By an unregistered deed the taxpayer purported to transfer a farm that previously had been acquired by him from his parents back to his parents for a nominal consideration; and 35 days later received the farm back from his parents for a nominal consideration pursuant to a further unregistered deed. ...

The Queen, 2016 TCC 2-- summary under Subsection 160(1) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1) double application of s. 160 re asset sale for excess consideration Shortly before a corporation (“Antoni”) sold all its assets to a third party, it acquired all the assets of a corporation (“LCR”) owned by its shareholder’s brother, which had been distributing one of its imported product lines in North America. Lamarre ACJ found that the assets so acquired from LCR did not include any valuable goodwill, so that the consideration paid by Antoni was inflated. ...

After FSL had subsequently sued the Province for reducing the space that was leased by it, the action was settled by the Province agreeing to pay FSL $2,056,250 in cash and, for $2,400,000, to grant an irrevocable assignable option (the “Option”) to FSL to purchase Founders Square (which was stated to have a fair market value of $2.4 million), together with an assignment of the Ground Lease in favour of FSL The $2.4 million consideration was to be funded by way of set-off against an additional amount of $2.4 million amount owing by the Province to FSL under the settlement agreement. ... FSL assigned $160,000 of the $2.4 million amount, that it was entitled to receive under the settlement agreement from the Province, to ADL in consideration for an ADL promissory note. FSL then surrendered the existing ground lease to the Province pursuant to a surrender agreement which stated that the consideration provided by FSL thereunder to the Province was “$10.00 and other good and valuable consideration,” the Province transferred the fee simple interest in Founders Square to ADL, and ADL and FSL entered into the new ground lease. ...

The Queen, 2018 TCC 3, aff'd on s. 18(1)(a) grounds 2019 FCA 36-- summary under Paragraph 110.1(1)(a) Summary Under Tax Topics- Income Tax Act- 101-110- Section 110.1- Subsection 110.1(1)- Paragraph 110.1(1)(a) consideration for "gift" was elimination of obligation to invest the funds The appellant was the limited partner of a partnership (“SEC”) that had become insolvent during efforts to relaunch a paper mill close to the City of Chandler. ... Dupont, 2016 QCCA 47 at paras. 28-31 for the proposition that for there to be a gift there must be “a transfer of property of a donor to a donee without the donor receiving equivalent consideration in return” and that “the donor must have the actual intention to part with the transferred property for the benefit of the donee without receiving a benefit in return” (para. 37), and in finding (respecting the first test) that the appellant had received consideration equal to the two resulting “gifts” by it to the City of $7.2 million and $2.1 million, Ouimet J stated (at paras. 45-6, TaxInterpretations translation): When the appellant proposed to SDEIC and the City of Chandler to pay these sums to the City of Chandler, the obligation of the appellant towards SDEIC still existed. ... Since the payment of the sums … to the City of Chandler had the effect of freeing the appellant of its obligation to negotiate in good faith to create a limited partnership, the consideration received by the appellant in exchange for such payment was the amount by which that obligation was extinguished. ...

Treaty where the recipient never had any interest in the oil field A Canadian corporation (“Sulpetro”), which had rights to direct and receive the proceeds from a licence its U.K. subsidiary (“SUKL”) held in an offshore U.K. oil and gas field (the “Buchan field”), sold its rights (along with a sale for nominal consideration of its shares of SUKL) in December 1986 to a U.K. purchaser (“BP”) for consideration that included a royalty that became payable, based on production from the field, when the market price of oil (less certain expenses) exceeded US$20 per barrel. ... Treaty to impose tax on the royalty payments received by RBC and, in particular, whether they fell within the portion of the definition of “immovable property” in Art. 6(2) (the “fifth limb”) that referred to "rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources". ... She went on to agree with RBC’s further alternate ground of appeal that since it was SUKL, and not Supeltro, that in fact held the licence from the U.K. to exploit the Buchan field, it was Sulpetro rather than SUKL that had the right to extract oil, i.e., the royalty payments could not be consideration for a "right to work" within the fifth limb because Sulpetro never held that right. ...

The Queen, 95 DTC 200, [1994] 2 CTC 2450 (TCC), briefly aff'd 96 DTC 6085 (FCA)-- summary under Subparagraph 152(4)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 152- Subsection 152(4)- Paragraph 152(4)(a)- Subparagraph 152(4)(a)(i) goodwill consideration misrepresented as fees The taxpayer was found to have made a misrepresentation attributable to neglect, carelessness or wilful default when it deducted "management fees" in its tax returns paid pursuant to a consulting agreement whose legal substance was the provision of consideration for the purchase of goodwill. ...