Search - consideration

RULING REQUESTED You would like to know whether you are required to pay the HST on the consideration charged to you by the surgeon for the additional upper vertical component of the Fleur de lis abdominoplasty and the mastopexy procedures. ... Therefore, the HST does not apply to the consideration charged to you by the surgeon for these supplies. ... EXPLANATION The general rule under the GST/HST legislation is that every recipient of a taxable supply made in Canada shall pay tax calculated at the applicable GST or HST rate on the value of the consideration charged for the supply, unless the supply is exempt from tax or a zero-rated supply (i.e., taxed at the rate of 0%). ...

As a general rule, the intentions of the supplier, and not those of a purchaser or a tenant, are taken into consideration in determining whether the real property held for purpose of supply is a residential complex. ... In summary, based on our analysis of these factors, it is our view that the proposal put forth for our consideration does not reflect a reasonable allocation between the physical portion of each Unit which constitutes a "residential complex" and that which does not. ... As such, consideration should be given to the relative value of the improvements made to the respective portions. ...

Head lease of the residential complex portion of the Facility prior to the amendments With respect to supplies for which consideration became due on or before February 26, 2008, or was paid on or before that date without having become due, section 6.1 of Part I of Schedule V to the ETA provided, in part, that the head lease of a residential complex may have been exempt for each lease interval ivFootnote 4. ... In such a case, the coming into force provisions for section 6.11 provide that the section applies only to those supplies for which consideration becomes due after February 26, 2008, without having been paid on or before that date, or is paid after that date without having become due. Supplies for which consideration becomes due, or was paid, on or before February 26, 2008, will not be exempt under section 6.11. vi 6. ...

Head lease of the residential complex portion of the Facility prior to the amendments With respect to supplies for which consideration became due on or before February 26, 2008, or was paid on or before that date without having become due, section 6.1 of Part I of Schedule V to the ETA provided, in part, that the head lease of a residential complex may have been exempt for each lease interval ivFootnote 4. ... In such a case, the coming into force provisions for section 6.11 provide that the section applies only to those supplies for which consideration becomes due after February 26, 2008, without having been paid on or before that date, or is paid after that date without having become due. Supplies for which consideration becomes due, or was paid, on or before February 26, 2008, will not be exempt under section 6.11. vi 6. ...

Head lease of the residential complex portion of the Facility after the amendments LESSEE's supplies of the residential complex portion of the Facility will be exempt under section 6.11 of Part I of Schedule V to the ETA for each lease interval in respect of which consideration becomes due after February 26, 2008, and was not paid on or before that date or is paid after that date without becoming due. ... In such a case, the coming into force provisions for section 6.11 provide that the section applies only to those supplies for which consideration becomes due after February 26, 2008, without having been paid on or before that date, or is paid after that date without having become due. Supplies for which consideration becomes due, or was paid, on or before February 26, 2008, will not be exempt under section 6.11. vi 6. ...

Head lease of the residential complex portion of the Facility prior to the amendments With respect to supplies for which consideration became due on or before February 26, 2008, or was paid on or before that date without having become due, section 6.1 of Part I of Schedule V to the ETA provided, in part, that the head lease of a residential complex may have been exempt for each lease interval ivFootnote 4. ... In such a case, the coming into force provisions for section 6.11 provide that the section applies only to those supplies for which consideration becomes due after February 26, 2008, without having been paid on or before that date, or is paid after that date without having become due. ... Supplies for which consideration becomes due, or was paid, on or before February 26, 2008, will not be exempt under section 6.11. vi 6. ...

ManageCo would be required to collect the GST/HST on the value of consideration for the supply of its management services that it supplies to TrustCo. ... Every recipient of a taxable supply (other than a zero-rated supply) made in a participating province is required to pay, in addition to the tax imposed by subsection 165(1) (i.e. 5%), tax in respect of the supply calculated at the tax rate for that province (i.e., the provincial part of the HST) on the value of the consideration for the supply under subsection 165(2). ... Whether a fee paid to a registered dealer is consideration for a financial service is a question of fact and it is necessary to look at the activities performed by the dealer in return for the fee. ...

More specifically, you have provided us with the following examples for our review and consideration: Example 1- General agent/broker The insurer has an agreement with a general insurance agent/broker to promote and effect the sale of the insurer's insurance policies. ... In providing our comments we have assumed that the term only refers to insurance policies. 2) Please note that concerning Compensation Arrangements, a renewal commission payable in future years may not be consideration for arranging for the supply of an insurance policy. ... With regards to your Example 4, in general, a commission paid to an Advisor who is not the person who arranged for the issuance of the policy may not be consideration for a supply of a financial service, as there is no direct involvement in a supply of a financial service. ...

., is considered to be a "residential unit" and is affixed to the land), is determined on a case-by-case basis taking into consideration the facts and circumstances of the particular case. ... In determining whether a particular recreational unit is affixed to the land, consideration is given to the method and degree of physical attachment of the unit to the land, as well as the purpose for which the unit has been attached to the land. ... Where a separate amount is paid by a lessee on account of property taxes assessed against the property owner, this amount is generally part of the consideration for the rental of the property, even if the lessee pays the amount directly to the municipality. ...

Generally, transfer payments made by a government are not regarded as consideration for a supply unless there is a direct link between the payment and a supply received by that government or a specified third party (as stipulated by the government). It is our view that the operating subsidy provided by the Ministry to the Corporation under the Service Agreement is a grant and not consideration for a supply. ... The Ministry provides operating subsidies based on a funding formula that takes into consideration the care requirements of residents once the operator has signed a Service Agreement in respect of a facility. ...