Search - consideration

In finding that the early-termination amounts so received by MEO were “for consideration” and, thus, subject to VAT, the Court stated (at paras. 39-40, 45): [A] supply of services is carried out ‘for consideration’, within the meaning of that provision, only if there is a legal relationship between the provider of the service and the recipient pursuant to which there is reciprocal performance, the remuneration received by the provider of the service constituting the actual consideration for the service supplied to the recipient …. This is the case if there is a direct link between the service supplied and the consideration received …. ... Words and Phrases consideration ...

La Reine, 2003 TCC 295-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration City school renovation subsidy was consideration The City of Quebec City paid a subsidy to a school board of $880,000 to enable the school board to renovate a school and expand its gymnasium. ... In such a situation, this term must be given its normal legal meaning. … If we refer to the definition of that term in this same reference work, we read: Consideration provided by the person who receives a benefit in the synallagmatic contract; reciprocal benefit (perceived as equal) charged to a party to a contract, for example, wages in consideration for work, or the price in consideration for the article sold. ... I am therefore obliged to find that this amount is the consideration for the supply by way of lease... ...

Agence du revenu du Québec, 2021 QCCA 1068-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration consideration for a transfer of waste included the assumption of environmental responsibility The taxpayer received organic sludge from suppliers in the agri-food industry, and was paid by them for taking over the sludge, which it then treated and transformed, using electricity, into residual fertilizer materials ("RFM"). ... In my view, this relief conferred a benefit on the Appellant and, in light of the foregoing analysis, constituted valuable consideration that may be characterized as "any other consideration" within the meaning of section 2(9) of the RSTA. Words and Phrases consideration sale ...

The King, 2022 TCC 141 (Informal Procedure)-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration a “gratuity” stipulated in the contract was part of the consideration The taxpayer was a banquet hall which held such events as weddings and other large celebrations. ... Before dismissing the taxpayer’s appeal, he stated (at paras. 21, 27-28): [T]he inclusion of an obligation as part of the bargain, cannot be viewed as a gift but part of the consideration. … Subsection 133(b) combined with subsection 138(a) … suggests that tips included in an agreement are part of the overall supply of prepared meals, which is subject to HST. … The ETA defines “consideration” as “any amount that is payable for a supply by operation of law.” The almost mandatory tip is enforceable by operation of contract law whereas a voluntary tip is not “consideration” because it is not payable by operation of law…. ...

Re 472601 Ontario Ltd. and Minister of Revenue (1987), 59 OR (2d) 25 (HCJ)-- summary under Value of the Consideration Summary Under Tax Topics- Other Legislation/Constitution- Ontario- Land Transfer Tax Act- Subsection 1(1)- Value of the Consideration value of consideration included referenced value of services to be rendered The appellant entered into an agreement to purchase real property for a stipulated purchase price of approximately $7.0 million, with the purchase price being stated to include the provision of services by a third party pursuant to a separate services agreement which indicated that the value of such services was approximately $3.3 million. Given that the parties clearly specified that the value of the services was included in the consideration for the sale, such value was included in the "value of the consideration". ...

The Queen, 2005 DTC 1807, 2005 TCC 269, [2005] GSTC 124 (Informal Procedure)-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration funds received by snowmobile club from government for managing trails were taxable consideration The appellant operated a snowmobile club as a member of Snowmobilers of Manitoba Inc., which was dedicated to developing and maintaining snowmobiling trails on provincial crown lands. ... Funding in respect of that retention can, in my view, properly be regarded as consideration for the services provided.... Section 123 of the Act defines consideration as including any amount paid for a supply. ...

The Queen, 2014 TCC 375-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration management fee distributions to large MFT unitholders The appellant, which was the manager (and also trustee) for various mutual fund trusts, charged reduced management fees to the trusts to reflect the reduced management fees agreed with the larger investors (with a corresponding reduction in the GST collected). ... Before finding that the trust obligations to pay the Management Fee Distributions to the large investors was not part of the consideration that the Funds provided in exchange for the appellant's management services, Campbell J stated (at para. 35): Pursuant to Commission Scolaire des Chênes and the common law definition of consideration, all that would be required for the Management Fee Distributions to constitute consideration for the taxable supply of management services would be a contractual obligation. ...

Canada, 2013 FCA 269-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration "consideration" under law of contract In the course of finding that the appellant was receiving a financial supply from the casinos it contracted with, Sharlow JA stated (at para. 15): In the context of this appeal, the word "consideration" should be understood to mean anything that would be consideration under the law of contract, and "taxable supply" should be understood to include anything supplied in the course of a commercial activity except a "financial service" as defined in subsection 123(1) of the Excise Tax Act. ...

Veronsaajien oikeudenvalvontayksikkö, [2019] EUECJ C-410/17 (10 January 2019) (European Court of Justice (9th Chamber))-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration a demolition contract entailed a barter exchange of dismantling services and scrap Pursuant to demolition contracts, a company (“A”) undertook to demolish old factory buildings with responsibilities that included the disposal and processing of materials and waste. ... In finding that there was a reciprocal supply of the dismantling services and the materials for consideration, the Court first stated (at paras. 39-40, 45): [I]t is clear from settled case-law that the consideration which is the taxable amount for a transaction has a subjective value … [being] the value which the recipient of services constituting the consideration for the supply of goods attributes to the services which he is seeking to obtain and must correspond to the amount which he is prepared to spend for that purpose …. [T]he supply of recyclable scrap metal is made for consideration if the person acquiring it, namely a demolition company, attributes a value to that supply which it takes into account in the calculation of the price quoted for carrying out the demolition works …. ...

The Queen, 2012 TCC 7-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration consideration not reduced by credit for subsequent provincial subsidy The appellant was entitled to receive amounts under an Alberta energy assistance program to defray additional costs to users (consumers and businesses) from a spike in natural gas and electricity costs. ... The appellant applied for a GST rebate under s. 261 on the basis that the GST payable by it should reflect consideration net of the credit, and was denied that rebate. ... Words and Phrases consideration ...