Search - consideration

It is the Department's view that a transaction that otherwise increases the capital of a corporation without any consideration being given by the corporation in respect of that increase may result in a contribution of capital for the purposes of paragraph 53(1)(c). ... In computing the ACB of a capital interest of a taxpayer in a trust, other than an interest in a "personal trust" (see 16 below) acquired by the taxpayer for no consideration or an interest of the taxpayer in those trusts referred to in 15 below, the taxpayer shall (a) deduct under subparagraph 53(2)(h)(i) any amount paid to the taxpayer by the trust after 1971 and before the time of the computation as a distribution or payment of capital by the trust, other than as proceeds of disposition of the interest or part thereof, to the extent that such amount became payable before 1988, (b) deduct under subparagraph 53(2)(h)(i.1) any amount that has become payable to the taxpayer after 1987 (subject to the transitional rules discussed in 14 below) and before the time of the computation in respect of that interest, other than as proceeds of disposition of all or part of an interest, except to the extent of the portion (i) that has been included in the taxpayer's income by reason of subsection 104(13) or, where the taxpayer is not resident in Canada, that is subject to Part XIII tax by reason of paragraph 212(1)(c), or (ii) that, where the trust was resident in Canada throughout its taxation year in which the amount became payable, (A) is equal to one-third (one-half if payable before 1990) of the net taxable capital gains of the trust designated by the trust under subsection 104(21) in respect of the taxpayer, or (B) represents non-taxable dividends of the trust designated by the trust under subsection 104(20) in respect of the taxpayer, (c) deduct under subparagraph 53(2)(h)(ii) any amount deducted for post 1981 taxation years by the taxpayer under subsection 127(5) in calculating the tax otherwise payable under Part 1 for taxation years ending before the time of the computation in respect of an investment tax credit allocated by the trust pursuant to subsection 127(7), (d) deduct under subparagraph 53(2)(h)(iii) the amount of share-purchase tax credit allocated to the taxpayer after the 1982 taxation year by the trust and added under subsection 127.2(3) in calculating the tax otherwise payable under Part 1 for a taxation year ending before or after the time of the computation, (e) deduct under subparagraph 53(2)(h)(iv) 50% of the amount of any scientific research tax credit allocated to the taxpayer after the 1982 taxation year and before the time of the computation by the trust under subsection 127.3(3), and (f) deduct under subparagraph 53(2)(h)(v) the amount of any assistance received by the taxpayer before the time of the computation from a government, municipality or other public authority that has resulted in a reduction to the trust under subsection 13(7.2) of the capital cost of a depreciable property acquired after May 9, 1985. ... A "personal trust" is defined in subsection 248(1) to mean (a) a testamentary trust, or (b) an inter vivos trust, no beneficial interest in which was acquired for consideration payable directly or indirectly to (i) the trust, or (ii) any person who has made a contribution to the trust by way of transfer, assignment or other disposition of property, and, for the purposes of (b) above and paragraph 53(2)(h), where an inter vivos trust is created by way of the transfer, assignment or other disposition of property by an individual (or two or more individuals each of whom was, at the time the trust was created, related to each of the other individuals), any beneficial interest in the trust acquired by such individual (or such individuals) at the time the trust was created shall be deemed to have been acquired for no consideration. ...

Where a supply of one or more financial services together with other properties (excluding capital properties) or services that are not financial services is made for a single consideration, the supply of all properties and/or services is treated as a supply of financial services if: the financial services are related to the other services or properties; it is the usual business practice of the supplier to supply those or similar properties and services together; and the consideration for the financial services (if supplied separately) would be more than 50% of the consideration for all of the properties or services if they had been supplied separately. ... In this case, if more than 50% of the consideration relates to financial services, the supply of all property and services is treated as a supply of financial services. ...

Class 12 includes low value assets depreciated at a rate of 100 per cent, while Class 14 includes limited-time patents, concessions, franchises, and licences; " commercial activity " means (a) any business carried on by a person, (b) any adventure or concern of a person in the nature of trade, and (c) any activity engaged in by a person that involves the supply of real property or of a right or interest in respect of real property by that person, but does not include (d) any activity engaged in by a person to the extent that it involves the making of an exempt supply by the person, (e) any activity engaged in by an individual without a reasonable expectation of profit, or (f) the performance of any duty or activity in relation to an office or employment; " exclusive ", in respect of the consumption, use or supply of property or a service, means all or substantially all of the consumption, use or supply of the property or service, and "all or substantially all", in respect of the consumption, use or supply of property or a service by a financial institution, means all of the consumption, use or supply of the property or service; " fair market value " of property or a service supplied to a person means the fair market value of the property or service without reference to any tax excluded by section 154 of the Act from the consideration for the supply; " financial institution ", at any time, means a person who is at that time a financial institution under section 149 of the Act; " improvement ", in respect of capital property of a person, means any property or service that is supplied to, or goods that are imported by, the person for the purpose of improving the capital property, to the extent that the consideration paid or payable by the person for the property or service or the value of the goods is, or would be if the person were a taxpayer under the Income Tax Act, included in determining the adjusted cost base to the person of the capital property for the purposes of the Income Tax Act; " individual " means a natural person; (version anglaise seulement) " input tax credit " means a credit claimable by a registrant for the Goods and Services Tax paid or payable by the registrant in respect of the acquisition or importation of any property or service for consumption, use or supply in the course of commercial activities of the registrant; " Minister " means the Minister of National Revenue; " person " means an individual, partnership, corporation, trust or estate, or a body that is a society, union, club, association, commission or other organization of any kind; " personal property " means property that is not real property; " prescribed " means (a) in the case of a form, the information to be given on a form or the manner of filing a form, prescribed by the Minister, and (b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation; " property " means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money; " public sector body " means a government or a public service body; " public service body " means a non-profit organization, a charity, a municipality, a school authority, a hospital authority, a public college or a university; " real property " includes (a) in respect of property in the Province of Quebec, immovable property and every lease thereof, (b) in respect of property in any other place in Canada, messuages, lands and tenements of every nature and description and every estate or interest in real property, whether legal or equitable, and (c) a mobile home; " recipient ", in respect of a supply, means the person who pays or agrees to pay consideration for the supply or, if no consideration is or is to be paid for the supply, the person to whom the supply is made; " registrant " means a person who is registered under section 241 or who is required to apply to be registered under section 240 of the Act; " sale ", in respect of property, includes any transfer of the ownership of the property and a transfer of the possession of the property under an agreement to transfer ownership of the property; " tax" means the Goods and Services Tax payable under Part IX of the Act. ...

The rebate will continue to be available in respect of a supply of a tour package or accommodation made on or before March 22, 2017, regardless of when the consideration for the supply is paid or the tour takes place. ... On this page Find out if you are eligible for the rebate Determine what is an eligible tour package for the rebate How to calculate and claim the rebate When to file and where to send the rebate application What information to include with the rebate application and what records to keep What to do if someone else is completing and filing the rebate application for you What to do if you choose to credit or pay the GST/HST rebate for a tour package How to request a GST/HST ruling on the eligibility of a tour package Find out if you are eligible for the rebate You may be eligible for a rebate of the GST/HST paid on an eligible tour package if one of the situations described below apply: Eligibility and conditions If you are Rebate eligibility To qualify you must meet all of the following conditions a non-resident individual visiting Canada OR a non-resident organization or business (other than a tour operator) that is not registered for the GST/HST and you bought the eligible tour package for use by an employee or client you bought an eligible tour package and the supplier did not pay or credit you with the rebate amount the short-term and/or camping accommodation included in the eligible tour package was made available to a non-resident individual the supply of the tour package was made on or before March 22, 2017, or if the supply was made after that date, it was made before 2018 and all of the consideration for the supply was paid before January 1, 2018 you did not buy the eligible tour package to resell in the ordinary course of a business of selling tour packages you are a non-resident of Canada at the time the rebate application is filed you paid at least $200 before taxes (this amount does not include property and services included in the tour package that are not subject to tax, such as overseas transportation services) you send us your rebate application by the filing deadline (see When to file and where to send the rebate application) you provide the necessary documents to prove you are eligible for the rebate a non-resident tour operator that is not registered for the GST/HST you bought an eligible tour package and resold it OR you bought short-term and/or camping accommodation in Canada and resold it as part of an eligible tour package you made the purchase in the ordinary course of your business of selling tour packages you sold the eligible tour package to another non-resident person the short-term and/or camping accommodation included in the eligible tour package was made available to a non-resident individual the supply of the tour package or accommodation was made to you on or before March 22, 2017, or if the supply was made to you after that date, it was made before 2018 and all of the consideration for the supply was paid before January 1, 2018 you received payment for the eligible tour package at a place outside of Canada where you or your agent conducts business, which we will consider to be where payment is processed and deposited you are a non-resident of Canada at the time the rebate application is filed you paid at least $200 before taxes (this amount does not include property and services included in the tour package that are not subject to tax, such as overseas transportation services) you send us your rebate application by the filing deadline (see When to file and where to send the rebate application) you provide the necessary documents to prove you are eligible for the rebate Note Travel agencies, persons who sell packages for tour operators and persons who sell packages that include a convention facility or related convention supplies are not eligible for a FCTIP rebate. ... This information must include: the supplier’s name, address, telephone number and business number the recipient’s name, address and telephone number details concerning the supply such as a description of the accommodation, the number of nights and consideration the GST/HST charged proof that the amount was paid (for example, copy of a cancelled cheque or wire payment confirmation number) What to do if someone else is completing and filing the rebate application for you If you enter into an agreement with someone else to complete and file your rebate application for you, see What to do if someone else is completing and filing your rebate application for you. ...

However, where such a debt was of a kind that would have qualified for consideration as a bad debt had it been retained until the end of the taxation year, any loss at the time of its disposition, or later because of non-payment by the debtor, would normally be deductible by the taxpayer as a general business expense. ... A taxpayer who is in the money-lending business, as in the case of any other taxpayer, may make loans that are not prompted by the ordinary considerations that govern the making of loans in a money-lending business. 13. ... Although the length of time that an account is in arrears is generally an important consideration in deciding whether the account is doubtful of collection, in certain circumstances a lengthy delay may occur without the account being so considered. ...

It is the Department's view that a transaction that otherwise increases the capital of a corporation without any consideration being given by the corporation in respect of that increase may result in a contribution of capital for the purposes of paragraph 53(1)(c). ... In computing the ACB of a capital interest of a taxpayer in a trust, other than an interest in a "personal trust" (see 16 below) acquired by the taxpayer for no consideration or an interest of the taxpayer in those trusts referred to in 15 below, the taxpayer shall (a) deduct under subparagraph 53(2)(h)(i) any amount paid to the taxpayer by the trust after 1971 and before the time of the computation as a distribution or payment of capital by the trust, other than as proceeds of disposition of the interest or part thereof, to the extent that such amount became payable before 1988, (b) deduct under subparagraph 53(2)(h)(i.1) any amount that has become payable to the taxpayer after 1987 (subject to the transitional rules discussed in 14 below) and before the time of the computation in respect of that interest, other than as proceeds of disposition of all or part of an interest, except to the extent of the portion (i) that has been included in the taxpayer's income by reason of subsection 104(13) or, where the taxpayer is not resident in Canada, that is subject to Part XIII tax by reason of paragraph 212(1)(c), or (ii) that, where the trust was resident in Canada throughout its taxation year in which the amount became payable, (A) is equal to one-third (one-half if payable before 1990) of the net taxable capital gains of the trust designated by the trust under subsection 104(21) in respect of the taxpayer, or (B) represents non-taxable dividends of the trust designated by the trust under subsection 104(20) in respect of the taxpayer, (c) deduct under subparagraph 53(2)(h)(ii) any amount deducted for post 1981 taxation years by the taxpayer under subsection 127(5) in calculating the tax otherwise payable under Part 1 for taxation years ending before the time of the computation in respect of an investment tax credit allocated by the trust pursuant to subsection 127(7), (d) deduct under subparagraph 53(2)(h)(iii) the amount of share-purchase tax credit allocated to the taxpayer after the 1982 taxation year by the trust and added under subsection 127.2(3) in calculating the tax otherwise payable under Part 1 for a taxation year ending before or after the time of the computation, (e) deduct under subparagraph 53(2)(h)(iv) 50% of the amount of any scientific research tax credit allocated to the taxpayer after the 1982 taxation year and before the time of the computation by the trust under subsection 127.3(3), and (f) deduct under subparagraph 53(2)(h)(v) the amount of any assistance received by the taxpayer before the time of the computation from a government, municipality or other public authority that has resulted in a reduction to the trust under subsection 13(7.2) of the capital cost of a depreciable property acquired after May 9, 1985. ... A "personal trust" is defined in subsection 248(1) to mean (a) a testamentary trust, or (b) an inter vivos trust, no beneficial interest in which was acquired for consideration payable directly or indirectly to (i) the trust, or (ii) any person who has made a contribution to the trust by way of transfer, assignment or other disposition of property, and, for the purposes of (b) above and paragraph 53(2)(h), where an inter vivos trust is created by way of the transfer, assignment or other disposition of property by an individual (or two or more individuals each of whom was, at the time the trust was created, related to each of the other individuals), any beneficial interest in the trust acquired by such individual (or such individuals) at the time the trust was created shall be deemed to have been acquired for no consideration. ...

Physician A receives consideration from the operator of the facility for the examination, review of the diagnostic test, and expert opinion. ... The operator's supply of the expert opinion made to the insurance company is taxable and the GST/HST is charged on the consideration for this supply. ... The GST/HST is charged on the consideration by the operator for these supplies. ...

One of the technical amendments proposes to add new section 177.1 to the Excise Tax Act, which if enacted, would provide that a collective society or a collecting body must, for the purpose of determining tax payable in respect of the supply of a service of collecting or distributing the levy on blank media under the Copyright Act, use a formula to calculate the value of the consideration for their supply of that service to an eligible author, eligible maker, or eligible performer or for their supply of that service to another collective society. Specifically, the formula would deem the value of the consideration to be equal to the value of the consideration for the supply, as otherwise determined for GST/HST purposes, minus part of the value of the consideration that is exclusively attributable to the collection and distribution of the levy on blank media. ...

., taxable capital gains minus allowable capital losses) on the disposition of "taxable Canadian properties" (see 9 below) not used or held in the year in the course of carrying on business in Canada (not to exceed net taxable capital gains from all dispositions in the year of taxable Canadian properties) (vii) tax payable under Part I for the taxation year less the portion of that tax attributable to net taxable capital gains specified in (vi) above (viii) non-deductible income taxes payable to a provincial government for the taxation year less the portion of such income taxes attributable to the net taxable capital gains specified in (vi) above (ix) allowance claimed for the year in respect of the investment in property in Canada (applicable only if the corporation was carrying on business in Canada at the end of the taxation year), not exceeding the maximum amount specified in subsection 808(1) of the Regulations (see 13 below) (x) amounts included in computing taxable income earned in Canada for the taxation year in respect of Crown resource royalties or the like, to the extent such amounts are not deductible under (viii) or (ix) above, and taxes paid or payable to the Crown (generally in respect of production or processing of petroleum prior to October 1986- see 19 below) under the Petroleum and Gas Revenue Tax Act, and (xi) excess of fair market value of any "qualified property" disposed of in the taxation year over the sum of the increase in paid-up capital resulting from the disposition plus the fair market value of the non-share consideration received (see 7 below for details) Amount subject to tax under section 219 Non-Canadian Corporations Resident in Canada 6. ... The provisions apply with respect to the transfer of "qualified property" to a Canadian corporation wholly owned by the non-Canadian corporation immediately after the transfer where the consideration received by the non-Canadian corporation includes shares of the Canadian corporation. ... Paragraph 219(1)(k) permits a deduction, in computing the amount subject to tax under section 219, of the amount by which the fair market value of the qualified property at the time of its disposition exceeds the aggregate of the amount of the increase in the paid-up capital of the capital stock of the Canadian corporation as a result of the disposition and the fair market value, at the time of receipt, of any non-share consideration given by the Canadian corporation. ...

The deemed sale alone does not cause the co-op to exceed the small supplier threshold since the residential complex is capital property of the co-op and, therefore, not taken into consideration for the small supplier threshold. ... Accordingly, the following considerations apply: Commercial activity paras 123(1)(a) and (b) If a person were to sell a building that is being relocated to another legal description, the sale is made in the course of commercial activities if the building is sold in the course of a business carried on by the person or as an adventure or concern in the nature of trade of the person. ... Return to footnote2 Referrer Footnote 3 Section 6 of Part I of Schedule V exempts long-term residential leases and supplies of residential accommodation by way of lease or licence where the consideration does not exceed $20 per day. ...