Search - 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... ...

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…. ...

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. ...

The Queen, 2020 TCC 56-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration determination by NPO's member to pay NPO's budget gave rise to consideration by operation of law CanLII was a not-for-profit corporation providing an open-access virtual law library that had all of its operating budget (of around $3 million per annum) funded by its sole member, being the Federation of Law Societies of Canada (Federation), which collected matching fees from 14 Canadian law societies. ... The Minister disallowed these ITCs on the basis that CanLII provided its service for no consideration (i.e., to its readers) and, therefore, provided an exempt supply pursuant to Shed. ... Lamarre ACJ found that CanLII instead was making a taxable supply for which the amounts collected from the Federation were the consideration. ...

The Queen, 2016 TCC 17-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration subsidy paid in consideration for future access rights Quebec City and the University of Laval entered into an agreement providing that the City would pay a grant of $10 million to the University for the expansion of the University’s sports complex and provide preferred access to the complex by the City populace, and simultaneously entered into a second agreement specifying inter alia that the populace would have access to the complex for 70% of its operating hours. After finding (at paras. 30-32, 50-51) that the two agreements created reciprocal and integrated obligations, Tardif J found (at para. 59) that “the grant was paid in consideration for a supply.” ...

The Queen, 2010 TCC 358-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration s. 153(2) required a reasonable allocation of consideration between the two distinct supplies made In order to promote the sale of its farm products (mostly honey), the appellant developed a “labyrinth” of trails on its forest lands and, when it sold tickets for access by visitors to the trails, stipulated that the ticket, generally sold for $12, also constituted a coupon of $1.50 to be applied to the purchase of honey or other products. ... Before confirming the resulting reassessments that treated $1.50 of the ticket prices as being zero-rated consideration for the honey or other food products, and the balance as consideration that was subject to tax, Boyle J indicated that s. 153(2) required that the “cost of admission to … the … forest must be reasonably divided between access to the labyrinth and other activities, and the mandatory purchase of a coupon to be exchanged for a honey or maple food product” (para. 8, TaxInterpretations translation) and then stated (at para. 19): Appellant was unable to present any valid reason why the value of the initial coupon should be other than $1.50, which is what it charged for the same coupons when purchased individually. ...

The Queen, 2018 TCC 59-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration statutorily-mandated waste recycling charges were consideration for a taxable supply Stewardship Ontario (“SO”) was a not-for-profit corporation that operated, as part of a regime governed by the Waste Diversion Act, 2002 (Ontario) ('WD Act"), an Ontario program for recycling various types of waste such as paints, solvents, batteries, empty propane tanks and antifreeze. ...

In rejecting the submission of the Crown that the shares had to be validly issued in the year of the transfer of the building, Bowman J. found (at p. 1110) that the expression "consideration that includes shares" was not confined to executed consideration, and that: What is essential is that there be either an actual issuance of shares or a binding obligation to do so at the time of transfer and that the shares be issued within a period of time that, in all the circumstances, is reasonable.... Consideration is of two kinds- executed and executory- and it would be an unwarranted restriction on that term to limit it to only one of the two types [citing Chitty on Contracts on the meaning of "consideration"]. ... Words and Phrases consideration ...

The Queen, 2020 TCC 101-- summary under Subparagraph 160(1)(e)(i) Summary Under Tax Topics- Income Tax Act- Section 160- Subsection 160(1)- Paragraph 160(1)(e)- Subparagraph 160(1)(e)(i) shareholders’ services were not consideration for dividends received by them for s. 160 purposes The taxpayers were an electrician and his spouse who were equal shareholders of their corporation and who provided services respectively as electrician and administrator to it. ... In rejecting their submissions that the dividends paid to them were partial consideration for such services so as to oust the application of s. 160 to the dividends, Monaghan J stated (at paras 15, 17, 19): The evidence that the dividends … were partial consideration for their services … was not very strong. … However, even if I accept that the Valovics reduced the amount of employment income and increased the amount of dividends, and that all payments were made because of the services they provided, the appeals must fail. … [T]his Court and the Federal Court of Appeal have consistently rejected the argument that consideration may be given for dividends, including in the context of section 160. These decisions accepted and endorsed the view expressed in Neuman that dividends relate to shareholding and rejected the argument that there was consideration for the dividends. … …Having decided to transform what the Valovics now wish to characterize as consideration for services rendered into a dividend for any reason, including tax advantages, the Valovics must accept the consequences of that decision. … ...