Search - consideration

In finding that this sum was a tax-free receipt, and in reversing a finding of the Tax Court Judge that it represented the value of consideration from a disposition pursuant to s. 7(1)(b), Malone J.A. stated that "a 'disposition' under paragraph 7(1)(b) refers to a transaction in which the taxpayer voluntarily agrees to exchange property rights that have accrued under an employee stock option agreement for some other consideration", and noted here that instead there had been a unilateral repudiation of the taxpayer's rights under the option agreement by the employer, and that such unilateral conduct constituted a fundamental breach of the contract that terminated it as of that date. ...

Lamarre J. found that the related fees paid by PC Bank to CIBC were consideration for arranging for financial services and, therefore, consideration for an exempt supply. ...

Profit- Rents The taxpayer, which had leased five properties to a related company, assigned the right to receive rents payable in respect of a period of five years and one day to a bank in consideration for a lump sum. ... He also was influenced by the consideration that if the taxpayer had granted the bank a six-year lease at nominal rents, the premiums payable would have been capital payments; and noted that the case was fundamentally different from the pre-payment by a tenant of a lump sum representing the discounted value of future rents payable by the tenant under a lease. ...

The Queen, 2003 DTC 951, 2003 TCC 494-- summary under Other Summary Under Tax Topics- General Concepts- Fair Market Value- Other The taxpayer assigned a commission of $3.9 million that was to be paid on a deferred basis by a limited partnership in consideration for the taxpayer having helped secure $49 million in equity capital that was to be invested (largely on as deferred basis) in the limited partnership, which was slated to purchase an office tower property approximately six months later, to a Cayman Islands corporation that was an indirect shareholder and with which it did not deal at arm's length, for cash consideration of $41,300. ...

The Queen, 2003 DTC 951, 2003 TCC 494-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) The taxpayer assigned a commission of $3.9 million that was to be paid on a deferred basis by a limited partnership in consideration for the taxpayer having helped secure $49 million in equity capital that was to be invested (largely on as deferred basis) in the limited partnership, which was slated to purchase an office tower property approximately six months later, to a Cayman Islands corporation that was an indirect shareholder and with which it did not deal at arm's length, for cash consideration of $41,300. ...

The Queen, 84 DTC 6073, [1984] CTC 92 (FCA)-- summary under Paragraph 7(1)(b) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(1)- Paragraph 7(1)(b) Prior to the effective date of an amalgamation squeeze out, the taxpayer agreed to surrender his unvested stock option rights in consideration for a cash payment from his employer equal to the accrued gain. ... In addition, s. 7(1)(b) was not found to be restricted to amounts received from a person other than the optioner/employer, and the words "otherwise disposed of" are "sufficiently broad as to include an amount received as consideration for the surrender of rights that are thereby extinguished. ...

The Queen, 2009 DTC 1394 [at at 2155], 2009 TCC 597-- summary under Subsection 103(1.1) Summary Under Tax Topics- Income Tax Act- 101-110- Section 103- Subsection 103(1.1) family trust allocated unreasonable return on its nominal-cost units The taxpayer and her son transferred real estate on a rollover basis to a partnership in consideration for Class A units of the partnership having a redemption value, subject to a price adjustment clause, of approximately $1.25 million for each of them. Several days later, the partnership issued Class C units to a family trust for consideration of $100. ...

Hogan J found that it was "manifestly incorrect" for the Minister's Reply to refer to the "consideration for the guarantee fee" rather than "consideration for the guarantee" (para. 29). ...

The transaction was one for other than a money consideration, and the parties were free to make their own bargain. No authority were cited for the claim of the Revenue in a case like this to go behind the agreed consideration and substitute a different figure.... ...

The Court noted that "although we state in Stewart supra, at para. 55, that reasonable expectation of profit may be used as one factor in making the overall determination as to whether or not the taxpayer's activities are personal or commercial, where, as here, the activities have no personal aspect, reasonable expectation of profit does not arise for consideration."" In addition, "although the respondents in this case were clearly motivated by tax considerations when they purchased their interests in the Partnership, this does not detract from the commercial nature of the storage park operation or its characterization as a source of income.... ...