Search - consideration

10 February 2017 GST/HST Ruling 162056- Application of the GST/HST to an investment transaction-- summary under Commercial Activity Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Commercial Activity receipt of royalty not considertion for a taxable supply A Canadian registrant (Investor) enters into an agreement with a Canadian corporation (Corporation 1) under which it pays lump sums in consideration for the right to receive monthly royalties calculated as a percentage of intellectual property (IP) related revenue streams of Corporation 1. ... After ruling that the lump sums so paid are consideration for the taxable supply to Investor of intangible personal property (the right to the royalty payments), CRA went on to find that when Corporation 1 makes the subsequent Royalty Payments to Investor pursuant to the right that Investor has acquired, Investor is not considered to be making a taxable supply in exchange for those payments. ...

10 February 2017 GST/HST Ruling 162056- Application of the GST/HST to an investment transaction-- summary under Subsection 182(1) Summary Under Tax Topics- Excise Tax Act- Section 182- Subsection 182(1) buyout of royalty agreement not subject to s. 182 A Canadian registrant (Investor) enters into “Agreement 1” with a Canadian corporation (Corporation 1) under which it pays lump sums in consideration for the right to receive monthly royalties calculated as a percentage of intellectual property (IP) related revenue streams of Corporation 1. ... " CRA ruled that the lump sums so paid are consideration for the taxable supply to Investor of intangible personal property (the right to the royalty payments). ...

3 November 2009 GST/HST Interpretation 109447- Lease Surrender-- summary under Sale Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Sale surrender of leasehold interest was sale of real property The surrender of a lease to the landlord qualified as a demise of real property, so that s. 221(2)(b) and 228(4) applied to the consideration therefor paid by the landlord. ...

3 November 2009 GST/HST Interpretation 109447- Lease Surrender-- summary under Subsection 221(2) Summary Under Tax Topics- Excise Tax Act- Section 221- Subsection 221(2) surrender of realty lease is transfer of realty The surrender of a lease to the landlord qualified as a demise of real property, so that s. 221(2)(b) and 228(4) applied to the consideration therefor paid by the landlord. ...

CRA ruled that the Royalty Acquisition Amount is consideration for a taxable supply made by Corporation 1 of intangible personal property (a right to be paid money, that is, the Royalty Payments). ...