Search - consideration

Canada, 2001 DTC 5385, 2001 FCA 152-- summary under Ownership Summary Under Tax Topics- General Concepts- Ownership self-cancelling double title transfers 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. ...

Profit- Patents and Know-How The taxpayer, which had been granted the exclusive world-wide licence to exploit the master patent for "Terylene" and was the owner of ancillary patents, granted to a Dutch company an exclusive licence of the right to exploit these rights and related know-how in the Netherlands and Belgian market in consideration for an annual royalty and, in addition, received a lump sum payment of £400,000 for its covenant not to enter those markets for the period of the patent. Since the £400,000 payment in essence was consideration for the granting of an exclusive licence of patent rights, i.e., for the disposition of a capital property, it was a capital receipt. ...

Canada, 2019 FCA 62-- summary under Subsection 85(2) Summary Under Tax Topics- Income Tax Act- Section 85- Subsection 85(2) beneficial drop-down of assets to corporation occurred 4 months before the share consideration was issued Webb JA affirmed a finding of D’Arcy J that the beneficial ownership of some applications to the Saskatchewan government for potash exploitation rights that had been acquired by a limited partnership had been immediately on-transferred by it to a wholly-owned corporation for share consideration (presumably on an s. 85(2) rollover basis), so that their fleeting beneficial ownership by the LP did not qualify them as being used in a Canadian active business, as required under the s. 110.6(14)(f)(ii) test. ...

The MGICs transferred all their shares of ProCap to ProRé for consideration (in the case of the voting shares transferred by the MGICs) in the form of certificates of additional participation in the capital of ProRé. Before going on to find that s. 256(7)(d) deemed there to have been no acquisition of control of ProCap, Favreau J paraphrased s. 256(8.1) and stated (at para. 44, TaxInterpretations translation): By virtue of subsection 256(8.1) of the ITA, ProRé is therefore deemed to have issued shares of its capital stock to the MGICs in consideration for the transfer of their Class A shares that they held in ProCap. ...

Royal Bank of Canada v Commissioners for His Majesty's Revenue and Customs, [2025] UKSC 2-- summary under Paragraph (c) Summary Under Tax Topics- Excise Tax Act- Section 217- Imported Taxable Supply- Paragraph (c) situs of a contractual obligation is the country where it can be enforced Before affirming the judgment of Falk LJ of the Court of Appeal, Lady Rose noted (at para. 48) in passing that: It is convenient to mention at this point that at para 54 of the leading judgment in the Court of Appeal, Falk LJ raised a problem about locating the situs of the right to receive the consideration referred to in Article 6(2). It is straightforward to treat the location of the actual land or the rights in the land as being in the State of source but it is more difficult to locate the situs of rights to payments in consideration of the right to work. ...

“Proceeds” for purposes of computing its mining profits under the Mining Tax Act (Ontario) referenced: (a) consideration received from the output of a mine; (b) consideration from hedging; and (c) consideration from future sales or forward sales of the output of the mine That Act in relevant part defined “hedging” as including “the fixing of a price for output of a mine before delivery by means of a forward sale or a futures contract on a recognized commodity exchange.” ...

The Queen, 2010 TCC 358-- summary under Subsection 153(2) Summary Under Tax Topics- Excise Tax Act- Section 153- Subsection 153(2) s. 153(2) requires a reasonable allocation of consideration between component supplies In order to promote the sale of its honey products produced on its rural lands, the appellant developed a “labyrinth” of trails on its forest lands. ... Before confirming the resulting reassessments that treated the $1.50 of the ticket prices as being zero-rated consideration for the honey or other food products, and the balance as consideration that was subject to tax, Boyle J referred to s. 153(2), and stated (at paras. 8. 19, TaxInterpretations translation): The cost of admission to … the … forest must be reasonably divided between access to the labyrinth and other activities, and the mandatory purchase of a coupon to be exchanged for a honey or maple food product. ...

In setting aside the decision of the Minister’s delegate to deny the request, and referring the matter back for a redetermination, Campbell J stated (at paras 6, 7, 8, and 9): In my view, the Delegate was required to state a clear and supportable justification to deny the Applicant’s re-appropriation request given the large sum of money under consideration. … There is no evidence that the Applicant was intentionally neglecting or avoiding its responsibility to maintain proper records. ... He also found (at para. 10) that the delegate's consideration of the taxpayer's GST-filing record was "an extraneous consideration." ...

In this regard, he stated (at paras. 57, 62-63): [T]here has been an evolution in the doctrine of consideration in the context of contract modifications. Recently, the British Columbia Court of Appeal held that when parties to a contract agree to vary its terms, the variation should be enforceable without fresh consideration, absent duress, unconscionability, or other public policy concerns (Rosas v. ... Although there is no evidence in this case that IPG provided any consideration to Houweling in return for his agreement to wait for payment of the loan, there is nothing to suggest that IPG exerted any economic pressure on Houweling to obtain the variation in the loan agreement and that there are no public policy reasons that would render the agreement unenforceable. … As a result, there was no amount owing by IPG to Houweling during the year that followed the issuance of the RTP and therefore no amount owing by IPG under the ITA as a result of its failure to make any payment to the Minister pursuant to the RTP. ...

Agence du revenu du Québec, 2019 QCCQ 1430, rev'd 2021 QCCA 906-- summary under Paragraph 7(3)(a) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(3)- Paragraph 7(3)(a) no s. 69(1)(b) application to s. 7(1)(b) dispositions An individual (Des Groseillers) who donated some of his employee stock options on the shares of the qualifying person (“BMTC”) to arm's length registered charities was assessed by the ARQ on the basis that the Quebec equivalent of s. 69(1)(b) (Taxation Act, s. 422) deemed the “value of the consideration for the disposition” received by him to be equal to the options’ fair market value of $3M, thereby resulting in the receipt of deemed employment income in that amount by him pursuant to the Quebec equivalent of s. 7(1)(b) (TA, s. 50). ... He further found, in the alternative, that even if the s. 7(1)(b) equivalent applied, it only applied on the basis of the nil consideration actually received by Des Groseillers rather than being expanded by the s. 69(1)(b) equivalent to deem the consideration to be $3M. ...