Search - consideration

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. ...

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 ...

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, 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. ...

Agenzia delle Entrate, Case C-94/19 (ECLI:EU:C:2020:193) (7th Chamber)-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration reimbursement of payroll was consideration Although the European VAT Directive provided that supplies of services (or goods) for consideration were taxable for VAT purposes, Italian VAT legislation provided that the secondment of staff where only the payroll costs were reimbursed was to be ignored for VAT purposes. In finding that this Italian legislation was contrary to the VAT Directive, so that VAT was applicable to the payments made by an Italian subsidiary (San Domenico Vetraria) to its Italian parent (Avir) to reimburse the latter for the payroll costs of a staff member who had been seconded to San Domenico Vetraria, the 7 th Chamber stated (at paras. 21-23: [A] supply of services is effected ‘for consideration’ … 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 value actually given in return for the service supplied to the recipient. …. ...

Re Assaly and Minister of Revenue (1986), 56 OR (2d) 30 (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 obligation of purchaser to pay for vendor's subsequent construction of condos A corporation owned by the appellant entered into an agreement with him in 1981 to sell vacant land to him for a purchase price of $185,000 with the agreement of purchase and sale being conditional upon the appellant and the corporation entering into a building contract under which the corporation would construct condominium units on the land. ... Consequently, the total "value of the consideration" was $2,142,700 (i.e., including such liability). ...

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. ...

National Car Parks Ltd v Revenue and Customs, [2019] EWCA Civ 854-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration car park machines that did not refund coin payments thereby received extra consideration for VAT purposes The case focused on this hypothetical example. ... In finding that the consideration received by NCP for VAT purposes was £1.50, and rejecting NCP’s submission that £0.10 was a gratuitous payment, Newey LJ stated (at para. 18): English law, of course, generally adopts an objective approach when deciding what has been agreed in a contractual context. ... Words and Phrases consideration ...