Search - consideration

RULING REQUESTED You would like to know whether the trade ticket fees payable by the introducing broker to the carrying broker are consideration for the supply of an exempt financial service. RULING GIVEN Based on the facts set out above, we rule that the trade ticket fees charged by the carrying broker to the introducing broker are consideration for a taxable supply for GST/HST purposes. ...

A person (who is not a charity or public service body) is a small supplier during any particular calendar quarter and the following month if the total value of the consideration for world-wide taxable supplies (other than supplies of financial services, sales of capital property, and goodwill attributable to the sale of a business) made by the person, or an associate of the person at the beginning of the particular calendar quarter, that became due, or was paid without becoming due, in the previous four calendar quarters does not exceed $30,000. ... According to the financial information you provided for the years [yyyy-yyyy] inclusive, the total value of the consideration you received for the taxable supply of instruction of dance lessons exceeded $30,000. ...

As consideration for servicing the mortgages under the Servicing Agreement, the Seller is entitled to receive a servicing fee that is set forth in a Fee Agreement. ... The servicing fee is calculated as a percentage of the mortgages serviced by the Seller and is consideration for the services rendered by the Seller to the Purchaser. ...

Explanation Every recipient of a taxable supply made in Canada is required to pay GST/HST at the rate of 5%, 12%, 13% or 15% (depending on the place of supply) on the value of the consideration for a supply unless it is an exempt supply. ... Section 135, "Sponsorship of public service bodies", states that: "For the purposes of this Part, where a public sector body makes a) A supply of a service, or b) A supply by way of licence of the use of a copyright, trade-mark, trade-name or other similar property of the body, to a person who is the sponsor of an activity of the body for use by the person exclusively in publicizing the person's business, the supply by the body of the service or the use of the property shall be deemed not to be a supply, except where it may reasonably be regarded that the consideration for the supply is primarily for a service of advertising by means of radio or television or in a newspaper, magazine or other publication published periodically or for a prescribed service. ...

Explanation Generally, in accordance with section 165, every recipient of a taxable supply made in Canada is required to pay GST/HST on the value of the consideration for the supply, unless the supply is zero-rated (listed in Schedule VI to the ETA and subject to the GST/HST at the rate of 0%) or exempt (listed in Schedule V to the ETA and not subject to the GST/HST). ... Though product placement is a relevant consideration, it alone is not considered a determinative factor. ...

Explanation Generally, in accordance with section 165 of the ETA, every recipient of a taxable supply made in Canada is required to pay GST/HST on the value of the consideration for the supply, unless the supply is zero-rated (listed in Schedule VI to the ETA and subject to the GST/HST at the rate of 0%) or exempt (listed in Schedule V to the ETA and not subject to the GST/HST). ... Though product placement is a relevant consideration, it alone is not considered a determinative factor. ...

Ruling Given Based on the facts set out above, we rule that the amount charged for the rental of the Site is consideration for a supply of land that is exempt of the GST/HST under subparagraph 7(a)(i) of Part I of Schedule V to the ETA. ... Whether a particular unit has the same permanent residential characteristics as a house such that it is considered to be a "residential unit", is affixed to the land, and is used as a place of residence for individuals is determined on a case-by-case basis taking into consideration the facts and circumstances of the particular case. ...

EXPLANATION As indicated in your incoming letter, you would like to receive an explanation of the primary factors that the Canada Revenue Agency takes into consideration in determining the nature of a supply. ... Each factor must be given equal consideration and a determination must be made based on the overall facts relating to the transaction in question. ...

In the present case, the expenses incurred by [A Co] (the person liable to pay the consideration under the agreement for the supply) with respect to services related to the administration of the Pension Plan relate to property or services acquired for consumption, use or supply in the course of [A Co]’s activities. ... As with the investment management services of [C Co], where expenses incurred by [A Co] have been paid from the Pension Fund, we would consider [A Co] to have made a taxable supply of services for consideration equal to the invoice amounts. ...

(Footnote 1) [INTERPRETATION REQUESTED] [Are the Canada Emergency Wage Subsidy (“CEWS”) and the 10% Temporary Wage subsidy for Employers (“TWS”) considered government funding for purposes of the Public Service Bodies’ (“PSB”) Rebate] [INTERPRETATION GIVEN] […] For purposes of the PSB rebate, “government funding” is defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations as (a) an amount of money (including a forgivable loan but not including any other loan or a refund, rebate or remission of, or credit in respect of, taxes, duties or fees imposed under any statute) that is readily ascertainable and is paid or payable to the particular person by a grantor i. for the purpose of financially assisting the particular person in carrying out the purposes of the particular person and not as consideration for supplies made by the particular person, or ii. as consideration for making property or services available for consumption or use by other persons (other than the grantor, individuals who are officers, employees, shareholders or members of the grantor, or persons related to the grantor or to such individuals), where supplies of the property or services made by the particular person to such other persons are exempt supplies, and (b) an amount of money paid or payable to the particular person by an organization (in this paragraph referred to as the "intermediary") that received the amount from a grantor or by another organization that received the amount from an intermediary, where i. in the case of an amount that, after 1990, becomes payable or is paid to the particular person, the intermediary or the other organization, as the case may be, provides to the particular person, at the time the amount is paid to the particular person, a certificate in a form prescribed by the Minister certifying that the amount is government funding, and ii. the amount would be government funding of the particular person because of paragraph (a) if the amount were paid by the grantor directly to the particular person for the same purpose as it was paid to the particular person by the intermediary or the other organization, as the case may be, and if the reference to "grantor" in subparagraph (a)(ii) included a reference to that intermediary or other organization, as the case may be. ...