Search - consideration

The second amendment clarified that a contributor includes a partnership, for purposes of the rule that disqualifies a trust from personal trust status if a beneficial interest has been acquired for consideration payable in any way to a contributor to the trust. ... The rule within the definition that generally ensures that one person (or two or more related persons) can make contributions to a trust and retain an interest under the trust without the prohibition on consideration being considered to apply was removed and provided in subsection 108(7). ...

It is important to always provide all relevant information to CRA to allow for a complete consideration of the issue, at the assessing, audit, and objection stages. ... While an application for taxpayer relief from interest or penalties is under consideration, collection action will continue and the amount is due and payable. ...

Therefore, once an election is made pursuant to section 273, a co-venturer will not: include any consideration received for joint venture supplies made by the operator on its behalf when determining if it is a small supplier pursuant to section 148 its filing frequency pursuant to sections 245 to 249 unless it is associated with the operator (within the meaning of section 127), and include any GST/HST paid or payable on joint venture purchases made by the operator on its behalf when calculating its input tax credits. ... According to section 141.01, generally, the extent to which property or a service is consumed or used, or is to be consumed or used, in the course of a commercial activity depends on the extent to which the consumption or use, or intended consumption or use, is for the purpose of making taxable supplies for consideration. ...

Issue and Decision: According to section 138, "where (a) a particular property or service is supplied together with any other property or service for a single consideration, and (b) it may reasonably be regarded that the provision of the other property or service is incidental to the provision of the particular property or service, the other property or service shall be deemed to form part of the particular property or service so supplied. ... The non-profit organization charges a single consideration of $81.00 in respect of both supplies. ...

That formula is A- B, where A is the tax calculated on the deemed consideration and B is the total of the input tax credits that must be deducted from A. ... Paragraph (c) of the subsection states that the creditor is deemed to have received a supply of the property immediately before the supply to the recipient and for the same consideration as the supply to the recipient, which will normally reflect any improvements or capital expenditures. ...