Search - consideration

., 98 DTC 1335, [1998] 1 CTC 2821 (TCC)-- summary under Subsection 97(2) Summary Under Tax Topics- Income Tax Act- Section 97- Subsection 97(2) capital withdrawal in substance boot The taxpayer borrowed money from a bank, contributed the borrowed money and a shopping centre to a partnership in consideration for the assumption of indebtedness and the issuance of debt and a partnership interest. ... In finding that s. 85(1)(b) should be applied to increase the consideration deemed to be received by the taxpayer to an amount above that initially elected, Bell TCJ. stated (at p. 1339): "The withdrawal of approximately 2/3 of the capital account at the time of asset transfer followed 38 days later by the withdrawal of the balance is inconsistent with the concept of a true capital account. ...

Loss The taxpayer entered into an agreement with the corporation owned by him and his wife to be paid fees in full consideration for providing guarantees of loans to be made to the corporation by The Royal Bank. However, in the absence of specific evidence that the fees actually paid by the corporation to the taxpayer were consideration for the provision of guarantees rather than for other services, Bonner J. found (at p. 1096) that the "guarantees were not shown to have been given in the course of a business or adventure in the nature of trade involving the provision of guarantees for reward". ...

Vaillancourt-Tremblay, 2010 DTC 5079 [at at 6833], 2010 FCA 119-- summary under Subsection 84(2) Summary Under Tax Topics- Income Tax Act- Section 84- Subsection 84(2) s. 84(2) inapplicable to tuck-under transaction In order to convert their shares of a private company ("MHT") that held preferred shares of a Canadian public corporation ("Videotron") into excluded property, the taxpayers transferred their shares of MHT to a newly incorporated corporation ("8855") in exchange for shares of 8855, and then had MHT transfer its Videotron securities to 8855 on a rollover basis in consideration for convertible securities of 8855. The taxpayers then sold their shares of 8855 to Videotron in consideration for shares of Videotron and Videotron wound up 8855 on a rollover basis, with the securities that 8855 held in Videotron thereby being cancelled. ...

The consideration which Boots received for those goods did not include the value of such coupons which were presented to it: "It is clear from the coupon's legal and economic characteristics... that, although a 'nominal value' is indicated on it, the coupon is not obtained by the purchaser for consideration and is nothing other than a document incorporating the obligation assumed by Boots to allow to the bearer of the coupon, in exchange for it, a reduction at the time of purchase of redemption goods. ...

The taxpayer unsuccessfully submitted that the old age security payments qualified as a "pension" for purposes of the Canada-Ireland Treaty (which define pensions as "periodic payments made in consideration of past services") because those payments were granted in consideration of twenty years of residence in Canada during which he rendered a contribution to the Canadian economy. ...

., 76 DTC 6010, [1976] CTC 24 (FCTD)-- summary under Agency Summary Under Tax Topics- General Concepts- Agency weight given to written agreement terms in finding that intermediary purchased as principal The taxpayer, in order to defer pursuant to s. 20(1)(n) the recognition of gain on the sale of land to the City of Calgary, agreed to sell the land to a trust company for cash consideration payable in eight years time. The trust company contemporaneously sold the land to the City for close to immediate consideration. ...

., 76 DTC 6010, [1976] CTC 24 (FCTD)-- summary under Subsection 104(2) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(2) The taxpayer, in order to defer pursuant to s. 20(1)(n) the recognition of gain on the sale of land to the City of Calgary, agreed to sell the land to a trust company for cash consideration payable in eight years time. The trust company contemporaneously sold the land to the City for close to immediate consideration. ...

., 92 DTC 1531, [1992] 1 CTC 2355 (TCC)-- summary under Shares Summary Under Tax Topics- General Concepts- Fair Market Value- Shares The taxpayer acquired the personal residence of a related individual in consideration for issuing non-voting preference shares which were redeemable by the taxpayer but not retractable by the individual. ... Pierre Savoie [the individual], from recovering any value whatever in respect of the property transferred to [the taxpayer], since the redeeming of class G shares received in consideration could not have been obtained by a holder who did not have legal control, whether direct or indirect. ...

., 92 DTC 1531, [1992] 1 CTC 2355 (TCC)-- summary under Subsection 160(1) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1) The taxpayer acquired the personal residence of a related individual in consideration for issuing non-voting preference shares which were redeemable by the taxpayer but not retractable by the individual. ... Pierre Savoie [the individual], from recovering any value whatever in respect of the property transferred to [the taxpayer], since the redeeming of class G shares received in consideration could not have been obtained by a holder who did not have legal control, whether direct or indirect. ...

Noël J.A. stated (at p. 11-13) that: "A payment will be regarded as consideration if it is directly linked to the supply of a good or a service by the person who received the payment...." Words and Phrases consideration ...