Search - consideration

The first is a passing reference in Tonn to the notion that where the Minister wishes to challenge the “reasonableness” of a taxpayer's transactions, consideration should be given to invoking section 67 before resorting to the “heavy-handed” Moldowan test (supra at 6009). ... The problem is that one's understanding of extravagance will be influenced as much by one's professional and business experiences, taken together with personal expectations informed by a particular lifestyle, as by pragmatic considerations related to the objects of the Act. ... But such concerns and considerations do not arise in the present context. 30 In my respectful view, to disallow the deduction of a portion of the interest because of 100% financing is to establish a criterion of arbitrariness and to effectively supplant, erroneously and unjustifiably, the reasonable expectation of profit test with section 67 of the Act. ...

Thus, the plaintiff chose to assess the value of the customer lists secured in the agreement with the trustee on the basis of a four-year open format wherein 120 per cent of the future net commission earned constituted consideration for the purchased lists — payments being deferred until actual commissions (profits) per annum were ascertained. ... The calculation of consideration on the basis of total anticipated future earnings over the duration of the agreement with the trustee provides a second indicator that the nature of the asset acquired was capital. ... Consequently it is not open to the plaintiff to argue that the sum of $322,461 payable to the trustee as consideration for the O’Bryan Group customer lists for the 1975 taxation year constituted a revenue expenditure that brought a benefit that was entirely consumed in the taxation year that the expenditure was incurred. ...

One consideration may point so clearly that it dominates other and vaguer indications in the contrary direction. ... Nothing indicates that the character of the operation had changed when the outlays under consideration were made. ... With regard to the period for which this exclusive right was to exist, I feel that taking into consideration the circumstances described in the evidence it was quite short. ...

Subsequently, the Minister did allow $2,000 for the 1964 taxation year as being consideration for the transfer and sale of samples and advertising material to the appellant, reducing the Minister’s claim for that year to tax on an additional amount of $5,030.31. ... With reference to that case, Lord Pearce, who wrote the Privy Council judgment, stated: It paid the agent company £300,000 cash in consideration of the agency agreement being terminated. ... Since he found for the Minister on this issue, Cattanach, J did not find it necessary to consider the question of whether the payment was made solely in consideration of the acquisition or cancellation of the exclusive sales agency or if the appellant received other benefits as well. ...

No mention is made in the agreement of any consideration for the termination of the distributor agreement but it does contain a provision whereby the respondent acknowledges that it has no claim of any kind against Volkswagen in respect of the termination of the Volkswagen distributor agreement dated February 22, 1957. ... Was the payment in consideration of the surrender or sale of the distributor franchise, was it a gratuitous payment for past services or, alternatively, was it a payment in lieu of anticipated profits? ... The relevant considerations in making such a characterization are, it seems to me, concisely stated by Lord Russell in Commissioners of Internal Revenue v Fleming & Co (Machinery) Limited, 33 TC 57, a decision of the Court of Session of Scotland wherein at page 63 he States: The sum received by a commercial firm as compensation for the loss Sustained by the cancellation of a trading contract or the premature termination of an agency agreement may in the recipient’s hands be regarded either as a capital receipt or as a trading receipt forming part of the trading profit. ...

Nearly four months previously, on July 28, 1965 an agreement had. been entered into in the form of an offer made by Mr Perrault to acquire the 193 common shares of Montreal Terra Cotta Limited held by Central Motor Sales Ltd which offer read as follows (translated): I, the undersigned, offer to become the purchaser of the 193 shares of Montreal Terra Cotta Limited held by Central Motor Sales Co Ltd for $1.00 and other valuable considerations. As a consideration, if my offer is accepted, I undertake to have paid to Central Motor Sales Co Ltd the sum of $350,000 after which the 193 shares of Montreal Terra Cotta Limited shall be delivered to me duly endorsed.-. ... Some consideration must therefore be given to the question of whether, in fact, any benefit resulted which would render plaintiff taxable on same under subsection 16(1) of the Act. ...

[3] provided that premiums or like consideration “demanded and given in connection with leasehold estates” should, as the case may be, either be included in or deductible from taxable income, to adopt Canadian terminology. The High Court of Australia has held that consideration for local goodwill was paid and received “in connection with leasehold estates” in sales of going concerns where the vendor granted a lease of the subject premises.! ... The aggregate sum realized was insufficient to satisfy the debt secured and it was sought to apportion the consideration and to pay the mortgagee only that part attributable to the unexpired term. ...

The purpose test may be an objective one, but a taxpayer's intention is certainly a relevant consideration (see Ludco Enterprises Ltd. v. ... Within this framework, policy considerations and the requirements of fact-finding can be weighed and balanced on the basis of their relative importance in each case. ... The balancing of the injury to the relationship against the benefit of the correct disposal of the matter involves purely public policy considerations. ...

Netolitzky's decision had been influenced by personal rather than purely business considerations. ... Justice Rothstein cautioned in Rich, supra at paragraph 14:   While future prospects of the debtor company may be relevant in some cases, the predominant considerations would normally be past and present. ... If future considerations are only speculative, they would not be material in an assessment of whether a past due debt is collectible.   ...

On December 24, 1974, MDC filed a notice of appeal from this judgment but meanwhile an agreement was entered into between plaintiff and MDC whereby MDC agreed to pay the amount found due by the judgment with interest making a total of $6,072,595 immediately in consideration of plaintiff agreeing to refrain from execution proceedings, to repay any amounts as might be deducted from the judgment by the Manitoba Court of Appeal, and a guarantee in the amount of $1,500,000 by Guy F Atkinson Company, an American corporation being the sole shareholder of the plaintiff. ... In his acceptance of this, together with the footnotes, he did not take Justice Dickson’s reasons for judgment into consideration and, in fact, did not learn of them until later. ... In the circumstances of that case it was held that the sums there in question had been paid outright to the Association as part of the consideration for the services it rendered; no question of a deposit arose. ...