Search - consideration

The Queen, 90 DTC 6583, [1990] 2 CTC 493 (FCTD)-- summary under Subsection 97(2) Summary Under Tax Topics- Income Tax Act- Section 97- Subsection 97(2) capital distribution part of consideration for land contribution The taxpayer ("Haro") contributed real estate worth $1.9 million to a partnership and the other member ("B.C. ... Reed J. held that it would be artificial in the extreme to characterize the facts any other way than that Haro had received both a partnership interest and the cash payment as consideration for the transfer of the lands, with the result that the agreed amount in the subsection 97(2) election filed jointly by Haro and B.C. ...

In finding that the subscription fees were not zero-rated consideration, Sharlow J.A. quoted with approval a statement of the OECD Model Tax Convention on Income and Capital that: "Thus, in a transaction that in essence is an acquisition of data or images transmitted electronically, any incidental copying is merely the means by which the data is captured and stored. The essential consideration for the payment in that case is the data, not the use of the copyright, even though copyright is incidentally used. ...

In finding that the subscription fees were not zero-rated consideration, Sharlow J.A. quoted with approval a statement of the OECD Model Tax Convention on Income and Capital that: "Thus, in a transaction that in essence is an acquisition of data or images transmitted electronically, any incidental copying is merely the means by which the data is captured and stored. The essential consideration for the payment in that case is the data, not the use of the copyright, even though copyright is incidentally used. ...

The Queen, 2006 DTC 2376, 2006 TCC 44-- summary under Subsection 245(3) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(3) The taxpayer, who held 14.28% of the common shares of a Canadian private corporation ("Consercom") transferred a 9.76% block to a wholly-owned holding company ("6311") in consideration for preferred shares of 6311 with a high paid-up capital (thereby giving rise to a capital gain eligible for the capital gains exemption). The taxpayer also transferred shares of a Canadian private corporation ("Gestion") that he owned together with his brother to 6311 in consideration for shares of 6311. ...

Expense- Shareholder Assistance The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net of working capital, in consideration for advice provided in connection with considering alternatives to maximize shareholders' value, with an emphasis on merger possibilities. The transaction ultimately implemented entailed the taxpayer's shareholders selling their shares, pursuant to a plan of arrangement, to another publicly-traded oil and gas company in consideration for treasury shares of that purchaser. ...

The trial judge had dismissed the notes as hearsay, but the case was heard under the informal procedure, which only allows the dismissal of hearsay evidence after a consideration of whether it is sufficiently reliable and probative to justify its admission, taking into account the need for a fair and expeditious hearing (para. 14). The trial judge could not have made such a consideration as he had refused to even look at the evidence. ...

.)-- summary under Paragraph 6(1)(a) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) A lump sum which an employee of a company received from the Department of Economic Development in consideration for giving up his rights under a redundancy scheme was found not to be "benefits and facilities of whatsoever nature" provided to him "by reason of his employment" for purposes of s. 154 of the Income and Corporation Taxes Act 1988. ... In addition, there was no benefit because "the money received was paid to him, by way of fair valuation, in consideration of his surrender of a right to receive a larger sum in the event of the contingency of redundancy occurring" (p. 406). ...

Remai, 2009 DTC 5188 [at at 6257], 2009 FCA 340-- summary under Subsection 245(4) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(4) no abuse in controlling funds established In order to make promissory notes that he had donated to a charitable foundation cease to be non-qualifying securities, the taxpayer arranged for the Foundation to sell those promissory notes to a corporation ("Sweet") owned as to 90% by his nephew, with Sweet issuing notes with identical terms to the Foundation as consideration for the purchase. In rejecting a submission of the Crown that the "non-qualifying security" provisions of the charitable gift rules were intended to prevent donors from claiming a charitable tax credit for the value of the gift when they still retain control of the funds from which the obligation would be satisfied (which was the case on the facts in this case), the Court noted (at para. 58) that nothing in the text of the provisions supported this purpose, and that the associated Budget statements instead referred only to loan-back situations, which was not the case in the transactions under consideration before the Court. ...

The Appellant claimed input tax credits ("ITCs") on its purchase of one such item of equipment (a boat) on the basis that some of the funding for the boat purchase came from the Nova Scotia government, and that such funding should be viewed as the consideration for a taxable supply of the boat to the government. The Minister denied the ITC claim on the basis that the boat instead was used in making exempt supplies for no consideration under Sched. ...

Blair J stated (at para. 32): Accordingly, their claims are for monies loaned to Confederation Life, plus an amount in excess of the monies advanced to reflect a consideration for the use of the monies advanced to the due date. Such a return, or consideration, is normally called "interest". ...