Words and Phrases - "conditional obligation"

a
92
b
44
c
87
d
58
e
43
f
32
g
20
h
15
i
77
j
2
k
3
l
32
m
63
n
29
o
42
p
83
q
3
r
80
s
96
t
48
u
16
v
11
w
25
y
2

Fortino v. R., 97 DTC 55, [1997] 2 CTC 2184 (TCC), briefly aff'd on procedural grounds 2000 DTC 6060 (FCA)

Summary Under
Tax Topics - Income Tax Act - Section 42

Lump sums received by individual vendors of shares for their execution of non-competition agreements with the share purchaser did not form part of the proceeds of disposition of their shares because their non-compete covenants did not represent "conditional obligations" i.e., obligations where there is uncertainty in respect of any of three things: "(1) whether the payment will be made; (2) the amount payable; or (3) the time at which the payment shall be made". (p. 71)

Words and Phrases
conditional obligation