Search - consideration

Barter units are accepted by XXXXX as partial consideration, to a maximum of XXXXX%, of the consideration for the supply of media time sold by XXXXX or goods and services from other parties. ... In the case at hand, XXXXX limits the total percentage of the consideration that can be paid with trade credits to XXXXX% of the consideration for supplies of advertising services from XXXXX. ... (b) where the consideration or that part is other than money, the fair market value of the consideration or that part at the time the supply was made. ...

Interest at a specified rate is also payable on the amount calculated to be the "Unearned Consideration". The interest is calculated from the day XXXXX paid the Monetary Consideration to the dealer to the day the "Unearned Consideration" is repaid to XXXXX 7. ... To the extent that XXXXX prepays consideration, it is not required to pay a rate per litre of fuel as the dealer makes its fuel purchases. ...

However, the vendor may also opt under subsection 181(3) to treat the coupon as reducing the value of consideration for the supply as provided for under subsection 181(4), in which case the recipient would be required to pay tax to the vendor on the net consideration for the supply after deducting the exchange value of the coupon. ... In that case, the recipient of the supply would be required to pay tax on the net value of consideration after deducting the coupon value. ... As such, if the value of the consideration for the supply of the specific good in question is fully reduced by the number of points exchanged, the net consideration on which tax would apply would be zero, and the recipient of the supply would pay no tax. ...

The general timing of liability rule under subsection 168(1), is that tax is payable by the recipient of a taxable supply on the earlier of the day the consideration for the supply is paid and the day that consideration for the supply becomes due. ... Under subsection 152(1), consideration for a taxable supply, or a part thereof, is deemed to become due on the earliest of the following days: •   the day the supplier first issues an invoice in respect of the supply for that consideration or part; •   the date of that invoice; •   the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part; and •   the day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing. ... In such cases, subsection 168(7) does not apply and the tax is payable on the earlier of the day the consideration is paid and the day the consideration becomes due in respect of the supply. ...

Interest at a specified rate is also payable on the amount calculated to be the "Unearned Consideration". The interest is calculated from the day XXXXX paid the Monetary Consideration to the dealer to the day the "Unearned Consideration" is repaid to XXXXX 7. ... To the extent that XXXXX prepays consideration, it is not required to pay a rate per litre of fuel as the dealer makes its fuel purchases. ...

One might question whether a penalty can be regarded as "consideration" for a supply. ... While in some cases penalties could fall under a specific rule such as section 182 of the Act and could become "consideration" for a deemed taxable supply, in other cases they could fall under the general provisions of the Act and be regarded as consideration for an actual supply being made. ... Therefore, depending on the specific facts of the situation, a penalty could take the form of: further consideration for a previous supply, consideration for a new supply, or "not consideration for a supply" In this case, one could argue that the Safety Committee Levy is imposed as a consequence of the breach of the agreement (e.g. safety measures agreed upon by the operator) entered into between the carrier and the operator and thus the payment should fall within the provisions of section 182. ...

As the value of the trade-in was greater than the consideration for the leased vehicle, no PST was charged on the lease payments. 5. ... With respect to the situation described above, the value of the consideration for the PST was nil and thus the value of the consideration for determining the provincial component of the HST applicable to the lease payments would also be nil. ... Section 354.1 of the ETA provides the following: a. if a motor vehicle is made by way of lease in a participating province before April 1, 1997, and b. a trade-in is accepted as consideration as full or partial consideration for the supply of the vehicle, and c. the PST would have applied to the lease intervals except for the trade-in, and d. the value of the consideration exceeds the "adjusted value" of the supply, e. the value of the consideration for purposes of determining tax under 165(2) or 218.1(1) on that supply is the "adjusted value. ...

Specifically, where a supplier has charged or collected tax from a purchaser on the consideration for a supply and, for any reason, that consideration is subsequently reduced (for instance, where a supplier agrees to refund the consideration paid for a returned good), the supplier may refund or credit to the purchaser the portion of the GST/HST that was calculated on the amount by which the consideration was so reduced (Subsection 232(2) of the ETA). ... A deposit given in respect of a supply is not considered as consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply (Subsection 168(9) of the ETA). Any applicable GST/HST will therefore only become payable on the deposit amount when it is applied as consideration for the supply. ...

Pursuant to section 159 of the Act, where the consideration for a supply is expressed in foreign currency, the value of the consideration for GST/HST purposes shall be calculated based on the value of that foreign currency in Canadian currency. ... Subsection 168(1) of the Act provides that tax is payable by the recipient of a taxable supply on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due. Consideration or a part thereof for a taxable supply is deemed to become due on the earliest of: (a) the day the supplier first issues an invoice in respect of the supply and the date of that invoice; (b) the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part; and (c) the day that the recipient is required to pay that consideration or part pursuant to an agreement in writing. ...