Search - consideration

For GST/HST purposes, the amount of the security charge is included in the consideration for the supply of the air transportation service. As such, where the supply of the service, other than a zero-rated supply, is made in a participating province, the total consideration for the supply, which includes the security charge, is subject to HST at 15%. Where the supply is made in a non-participating province, the total consideration for the supply, including the security charge is subject to GST at 7% providing the supply is not zero-rated. ...

For GST/HST purposes, the amount of the ATSC is included in the consideration for the supply of the air passenger transportation service. As such, where the supply of the service, other than a zero-rated service, is made in a participating province, the total consideration for the supply, which includes the ATSC, is subject to the HST at 15%. Where the supply is made in a non-participating province, the total consideration for the supply, including the ATSC, is subject to GST at 7% provided the supply is not zero-rated. ...

Organizational structure Identification of the participants in the related party dealings and their relationship (with a brief history of and any significant changes in the relationship), including associated enterprises whose transactions directly or indirectly affect the pricing of the related party dealings A description of taxpayer's worldwide organizational structure (including an organization chart) covering all associated enterprises engaged in transactions potentially relevant to determining an arm's length price for the documented transactions Nature of the business/industry and market conditions An outline of the business including a relevant recent history of the taxpayer, the industries operated in, the general economic and legal issues affecting the business and industry, and the taxpayer's business lines The corporate business plans to the extent they give an insight into the nature and purpose of the relevant transactions between the associated enterprises A description of internal procedures and controls in place at the time of the related party dealings Analysis of the economic and legal factors that affect the pricing of taxpayer's property and services A description of the structure, intensity and dynamics of the relevant competitive environment(s) A description of intangible property potentially relevant to the pricing of the taxpayer's property or services in the controlled transactions Copies of annual reports and financial statements for the year to which the Package relates and the prior five years Information as to the functions performed, assets employed and risks assumed relevant to the transactions An explanation of capital relationships (for example, balance and source of debt and equity funding) relevant to the transactions Controlled transactions A description of the controlled transactions that identifies the property or services to which the transaction relates and any intangible rights or property attached thereto, the participants, the scope, timing, frequency of, type, and value of the controlled transactions (including all relevant related party dealings in relevant geographic markets), as well as the currency of the transactions, and the terms and conditions of the transactions and their relationship to the terms and conditions of each other transaction entered into between the participants Identification of internal data relating to the controlled transactions Copies of all relevant inter-company agreements Assumptions, strategies, policies Relevant information regarding business strategies and special circumstances at issue, for example, set-off transactions, market share strategies, distribution channel selection and management strategies that influenced the determination of transfer prices If the taxpayer pursues a market share strategy, documentation demonstrating that appropriate analysis was done prior to implementing the strategy, that the strategy is pursued only for a reasonable period, and that the costs borne by each associated enterprise are proportionate to projected benefits to such enterprise Assumptions and information regarding factors that influenced the setting of prices or the establishment of any pricing policies for the taxpayer and the related party group as a whole Cost contribution arrangements (CCA) Footnote 5 A copy of the CCA agreement that is contemporaneous with its formation (and any revision) and any other agreements relating to the application of the CCA between the CCA participants A list of the arrangement's participants, and any other associated enterprises that will benefit from the CCA The extent of the use of CCA property by associated enterprises which are not CCA participants, including the amounts of consideration paid or payable by these non-participants for use of the CCA property A description of the scope of the activities to be undertaken, including any intangible or class of intangibles in existence or intended to be developed A description of each participant's interest in the results of the CCA activities The duration of the arrangement Procedures for and consequences of a participant entering or withdrawing from the agreement (i.e., buy-in and buy-out payments) and for the modification or termination of the agreement The total amount of contributions incurred pursuant to the arrangement The contributions borne by each participant and the form and value of each participant's initial contributions (including research) with a description of how the value of initial and ongoing contributions is determined and how accounting principles are applied A description of the method used to determine each participant's share of the contributions including projections used to estimate benefits, any rationale and assumptions underlying the projections, and an explanation of why that method was selected The consistent accounting method used to determine the contributions and benefits (including the method used to translate foreign currencies), and to the extent that the method materially differs from accounting principles accepted in the relevant PATA member's country, an explanation of the material differences Identification of each participant's expected benefits to be derived from the CCA, the extent of the benefits expected, and the formula and projections used for allocating or sharing the expected benefits, and the rationale and assumptions underlying the expected benefits Where material differences arise between projected benefits and actual benefits realized, the assumptions made to project future benefits need to be amended for future years, and the revised assumptions documented Procedures governing balancing payments, e.g. where payments are required to reflect differences between projected benefits and actual benefits realized Comparability, functional and risk analysis Description of the comparables including, for tangible property, its physical features, quality, availability; for services, the nature and extent of the services; and for intangible property, the form of the transaction, the type of intangible, the rights to use the intangible that are assigned, and the anticipated benefits from its use Documentation to support material factors that could affect prices or profits in arm's length dealings For the taxpayer and the comparable, identify the factors taken into account by the taxpayer to evaluate comparability, including the characteristics of the property or service transferred, the functions performed (and the significance of those functions in terms of their frequency, nature and value to the respective parties), the assets employed (taking into consideration their age, market value, location, etc.), the risks assumed (including risks such as market risk, financial risk, and credit risk), the terms and conditions of the contract, the business strategies pursued, the economic circumstances (for example, the geographic location, market size, competitive environment, availability of substitute goods and services, levels of supply and demand, nature and extent of government regulations, and costs of production, etc.), and any other special circumstances Criteria used in the selection of comparables including database screens and economic considerations Identification of any internal comparables Adjustments (and reasons for those adjustments) made to the comparables Aggregation analysis (grouping of transactions for comparability) Supporting transfer pricing methodology or methodologies used, if any If a range is used, documentation supporting the establishment of the range Extension of the analysis over a number of years with reasons for the years chosen, where relevant Selection of the transfer pricing method Description of the method selected and the reasons why it was selected, including, for example, economic analysis and projections relied upon Description of the data and methods considered and the analysis performed to determine the transfer pricing and an explanation of why alternate methods considered were not selected Application of the transfer pricing method Documentation of assumptions and judgments made in the course of determining an arm's length outcome (refer to the comparability, functional and risk analysis section above) Documentation of all calculations made in applying the selected method, and of any adjustment factors, in respect of both the taxpayer and the comparable Appropriate updates of prior year documentation relied upon in the current year to reflect adjustments for any material changes in the relevant facts and circumstances Index to documents Background documents Documents that provide the foundation for or otherwise support or were referred to in developing the transfer pricing analysis General index of documents and a description of the record-keeping system used for cataloging and assessing those documents (required in the United States and encouraged, but not required, by other PATA members). 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In these calculations, consideration for most taxable supplies (including zero-rated supplies) that became due or was paid without having become due to the person during a specified period is aggregated with a similar total for all associated persons. 3. ... The instalment base of the registrant for reporting periods that begin before 1992 is the lesser of (a) 75 per cent of the amount as determined under paragraph 237(2)(a) of the Act, and (b) the amount determined by the formula A x B x 365/C where A is the prescribed percentage, B is the total consideration received by or due to the registrant for supplies of property (other than supplies by way of sale of capital property of the registrant) or services by the registrant in the fiscal year of the registrant that immediately preceded that reporting period, and C is the number of days in the fiscal year of the registrant that immediately preceded that reporting period. 17. ... For example, assume that in the fiscal year immediately preceding the "transitional" reporting period, total consideration for supplies as defined above was $300,000, and the applicable prescribed percentage was five per cent. ...

In the case of an imported taxable supply of tangible personal property (including drop shipments) the tax is to be assessed based on the full value of the consideration that is paid or becomes due. For any other property or service, the tax is to be assessed on the percentage of the total consideration paid for the supply that the consumption, use or supply by the recipient in the participating province, is of the total consumption, use or supply of the intangible personal property or service. ... Payment of tax (s 218.2, s 219) The provincial component of the HST relating to imported taxable supplies is payable on an amount of consideration for a supply each time it becomes due or is paid without having become due. ...

The core charge forms part of the consideration payable for the new part. ... Where the non-registrant supplies the used part to the vendor at the time the new automotive part is purchased, the GST/HST trade-in rules apply and the GST/HST is calculated on the difference between the consideration payable, including the core charge, for the new part being sold and the amount credited for the trade-in. ... The vendor is required to collect GST/HST on the total consideration payable for the new part, including the core charge. ...

Any amount to which the trustee is entitled for acting as a trustee of the trust that is included in computing the trustee's income under the ITA, or where the trustee is an individual, the individual's business income, is deemed to be consideration for the supply of that service. ... The consideration for the supply is deemed to be equal to the amount determined under the ITA to be the proceeds of disposition of the property. ... The consideration for the deemed supply of the property is deemed to be equal to the amount determined under the ITA to be the proceeds of disposition of the property. ...

. ¶3.35 (formerly ¶18 of IT-530R) has been modified to emphasize the requirement for a court order or written agreement and also that the amount deductible under paragraph 60(b) is the total of all amounts determined by the formula in paragraph 60(b) after giving consideration to support amounts paid to a particular person. ¶3.40 (formerly ¶10 of IT-530R) has been modified to expand the discussion of adjusting support amounts where the court order or written agreement gives consideration to bonuses and incentive payments. ¶3.42 has been added to address circumstances similar to former ¶11 where a support amount is offset by an equalization amount owed by the recipient to the payer. ¶3.44 (formerly contained in ¶22 of IT-530R) has been has been changed to note the CRA’s general acceptance of the Tax Court of Canada decision in Craig James v HMTQ, 2013 TCC 164, 2013 DTC 1135 for a lump-sum payment for retroactive periodic maintenance paid pursuant to a court order. ¶3.45 (formerly contained in ¶22 of IT-530R) has been expanded to clarify that where a lump-sum amount meets the requirements of a support amount, it is deductible by the payer and included in the income of the recipient. ... The paragraph has also been modified to clarify that the payer may be entitled to personal tax credits after the death of the recipient. ¶3.68 has been added to discuss the treatment of payments directly from a pension plan to the recipient and includes a reference to paragraph 11 of Interpretation Bulletin IT-499R, Superannuation or Pension Benefits. ¶3.73 has been added to refer readers to Interpretation Bulletin IT-513, Personal Tax Credits. ¶3.74 (formerly ¶35 of IT-530R) has been modified to note that the restriction in subsection 118(5) is applied in respect of a particular person as well as giving consideration to amounts paid to third parties. ¶3.75 – 3.76 have been added to include discussion of the exception in subsection 118(5.1) for claiming a personal tax credit in respect of a person where more than one individual is required to make a child support payment in respect of that person. ...

In the case of an imported taxable supply of tangible personal property (including drop shipments) the tax is to be assessed based on the full value of the consideration that is paid or becomes due. For any other property or service, the tax is to be assessed on the percentage of the total consideration paid for the supply that the consumption, use or supply by the recipient in the participating province, is of the total consumption, use or supply of the intangible personal property or service. ... Payment of tax (s 218.2, s 219) The provincial component of the HST relating to imported taxable supplies is payable on an amount of consideration for a supply each time it becomes due or is paid without having become due. ...

Where the excess land does not qualify as part of the residential complex, the self-supply rules relating to a residential complex would not apply to that portion of the excess land and any part of the GST paid on the consideration for the supply of a residential building and land that relates to such excess land would not be eligible for the housing rebates. ... The allocation must be based on a method that is fair and reasonable (for example, the fair market value of each of the properties) and consideration must be given to any restrictions and/or severance laws or regulations, in effect on the date of acquisition, of any part of the property, including the portion that does not qualify as the residential complex. ... The allocation of the consideration payable for the residential complex (including the qualifying land) and the non-qualifying land should be determined on a fair and reasonable basis. ...