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He argued that since he had established that around ¼ of the payments received by him as cheques from a corporation, with which he did not deal at arm’s length, properly reimbursed him for business expenses, he had demolished the Minister’s “exact” assumption made in assessing him under s. 160 that the taxpayer had “provided no consideration for the cheques.” In rejecting this position, Monaghan JA stated that the taxpayer “places far too much emphasis on the word ‘exact’ and gives insufficient weight to the word ‘demolish’ in … Hickman. ” and further stated that “establishing some consideration for the cheques is not sufficient to demolish the Minister’s assumption,” noting in this regard that the “purpose of pleading the assumption is to provide the appellant with notice of the case the appellant has to meet” and here, the taxpayer knew that, in the context of a s. 160 assessment, he needed to establish that he had provided fair market consideration for the cheques, “not merely some consideration.” ...

Before agreeing with the position of the Minister that the “gratuity” was part of the consideration for the supply under the contract, Bocock J referred inter alia to U.K jurisprudence that [V]oluntary gratuities are not subject to VAT because voluntary gratuities are: ‘[N]o part of the contract that the customer should pay a charge for service ….’ ... 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…. ... The King, 2022 TCC 141 under ETA – 123(1) – consideration. ...

7 May 2018- 12:11am CRA confirms that there is no requirement on a supplier to refund GST/HST on an excess charge Email this Content ETA s. 232(2) provides that where a supplier has charged GST/HST on consideration that is subsequently reduced, the supplier “may” then refund the GST/HST it charged on the excess consideration. ... As such, it is at the discretion of the [supplier] whether to refund the GST on the reduction in consideration. ...

In the first case, the the 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 with the consideration it received for its demolition work effectively being grossed up by this estimated amount. ... A similar gross up of consideration for reciprocal supplies might occur under ETA s. 153(1). ... Veronsaajien oikeudenvalvontayksikkö, [2019] EUECJ C-410/17 (10 January 2019) European Court of Justice (9 th Chamber) under ETA s. 123(1)- consideration. ...

17 September 2018- 11:18pm CRA confirms that it is possible to structure a P3 project so as to defer the applicability of GST/HST until revenues are ascertained Email this Content Typically, P3 project construction costs for a hospital, bridge etc. are intended for ITA purposes to be viewed as consideration for the grant of a concession or licence (a Class 14 property) by the public authority to the private operating company to enter onto the premises to operate it and earn a monthly operating fee (see e.g., 2006-0218781R3). On the ETA side, CRA instead views the consideration for the incurring of the construction costs as being included in the subsequent monthly amounts payable by the authority. Provided that the amount of such consideration is not yet ascertainable, GST/HST is not triggered (one month after substantial completion) under ETA s. 168(3)(c) on the value of the supply made to the public authority by virtue of the supply of the hospital etc. and is deferred under s. 168(6) until the monthly amounts become ascertainable. ...

., the distribution restriction in s. 74.4(4) was not complied with), the preferred shares received on the refreeze will be excluded consideration that do not reduce the “outstanding amount” (as determined under s. 74.4(3)) on which the deemed interest benefit is computed under s. 74.4(2). If the refrozen preferred shares are redeemed for cash consideration, that consideration will reduce the outstanding amount, but only to the extent of the fair market value of those shares. ...

10 August 2021- 1:55am CRA position accommodating extracting cash on an amalgamation may facilitate surplus stripping Email this Content 2018-0785921E5 and 2017-0696821E5 indicate that where there is a distribution of cash and shares to shareholders of predecessor corporations pursuant to an amalgamation, the conditions of s. 87(1)(c) will be met, while the receipt of the non-share consideration will preclude s. 87(4) from applying, so that such shareholders will realize a capital gain or loss based on the value of the shares and cash received from Amalco. This suggests that surplus of a corporation can be extracted on its amalgamation as cash or other non-share consideration. S. 84(2) risk can be minimized by continuing to operate the businesses of the predecessors and taking the non-share consideration as a note that is drawn down over time. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2012-04-27 17 April 2012 External T.I. 2011-0427411E5 F- Bien de remplacement-immobilisation admissible Income Tax Act- Section 14- Subsection 14(7) shares cannot be replacement property 17 April 2012 External T.I. 2012-0440931E5 F- Crédit d'impôt pour frais médicaux Income Tax Regulations- Regulation 5700- Section 5700- Paragraph 5700(i) motorized stationary bicycle did not qualify 2012-04-20 10 April 2012 External T.I. 2011-0428701E5 F- Lien de dépendance- commanditaire et SEC Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) limited partner at arm's length with LP if it has no management authority 10 April 2012 Internal T.I. 2011-0430291I7 F- Montant d'aide versé par la SAAQ à un conjoint Income Tax Act- Section 3- Business Source/Reasonable Expectation of Profit automobile insurance payments received for care of injured spouse were non-taxable 3 April 2012 External T.I. 2011-0426341E5 F- Catégories 29 et 43 Income Tax Regulations- Schedules- Schedule II- Class 29 scrap metal shearing device and container for sliced metal described in Class 29 2011-04-01 23 March 2011 Internal T.I. 2010-0389081I7 F- Disposition of a resource property Income Tax Act- Section 54- Proceeds of Disposition- Paragraph (a) proceeds included full (undiscounted) deferred cash proceeds, but might exclude share consideration (with volatile market price) until issued Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) deferred share consideration potentially not recognized until issuance Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(b) full undiscounted amount of future cash consideration to be included as an amount receivable Income Tax Act- Section 66.2- Subsection 66.2(5)- cumulative Canadian development expense- Element F proceeds from mineral claims sale included undiscounted deferred cash proceeds, but might exclude share consideration until issued; purchaser’s CEE obligation excluded ...

R & S then appealed to the Tax Court with a view to convincing the Court that the allocation of consideration between partnership-interest and non-partnership interest consideration set out on the (T2059) election form did not reflect the actual agreed allocation. ... Graham J considered that there was a crucial distinction between the T2059’s agreed amounts, which could not be altered by the Minister, and the allocation of the consideration, which was a purely factual matter which was merely recorded on the T2059, and which either CRA or the taxpayer were free to challenge in the Tax Court as not according with the actual facts. ...

24 August 2017- 1:36am CRA considers the HST questions of who has acquired a service or property, and who is the recipient of a supply, to be cognate Email this Content The definition in the ETA of the “recipient” of a supply refers to the person who, under the agreement for a supply, is liable to pay the consideration therefor. CRA indicated that it did not consider someone to be the recipient of a supply merely because that someone was contractually liable to pay the consideration for the supply. ... The [recipient] definition refers to ‘consideration for the supply’. However, in the present case, the [Lessor] has not acquired any supply of software licences, and is therefore not entitled to claim any ITC for the tax paid for them. ...