Search - consideration

The general rule is that tax is payable by the recipient on the earlier of the day that consideration for a taxable supply is paid or the day that consideration becomes due. Subsection 152(1) deems consideration for a taxable supply to become due on the earliest of the following days: (a) the day that the supplier first issues an invoice in respect of the supply; (b) the day of the invoice; (c) the day when, but for an undue delay, the supplier would have issued an invoice in respect of the supply; and (d) the day that consideration is due pursuant to an agreement in writing. ...

. •   The Charity paid the Supplier $XXXXX (the amount originally agreed upon as consideration for the Prize). ... Ruling Given Based on the facts set out above, we rule that the Charity's payment to the Supplier is consideration for the supply of the Prize and the Charity is required to pay HST on that consideration. ... As a result, the Charity's payment to the Supplier is consideration for the supply of the Prize even though the prizewinner arranged with the Supplier to receive cash instead of the Prize. ...

The employee further confirmed that this settlement constitutes the entire agreement between the parties, and that the undertakings are the sole consideration for the release. 8. ... Decision XXXXX in accordance with our analysis of the facts and in consideration of your submission, we are confirming XXXXX that XXXXX is the recipient of the supply of the legal service made by XXXXX lawyer and is required to pay the GST owing XXXXX. Explanation Subsection 123(1) provides for a definition of "recipient" and includes, in part, the situation where consideration is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration. ...

Based on these facts you ask whether excise duties should be included in the value of the consideration for the supply of spirits made in Canada by a registrant and supplied in-bond under the Authority of the Excise Act. ... Consequently, GST will be calculated on the value of the consideration, excluding excise duty which in these circumstances, is not payable. ... Therefore, as Excise duty is imposed and payable, in accordance with section 154 of the Excise Tax Act, GST will be calculated on the value of the consideration including such excise duty. ...

The company has determined that the bad debts include amounts which are neither consideration for a taxable supply nor GST. 5. ... Subsection 231(1) requires the company to establish that the tax or the consideration for a supply, in whole or in part, has become a bad debt. ... The Department requires this information to establish that the consideration and tax have become in whole or in part a bad debt. ...

Any consideration received by the surety from the obligee with respect to the completion contract under the performance bond is not subject to GST. ... GST is applicable to the consideration for the taxable supplies made by the subcontractors to the surety. ... These payments do not represent consideration for a supply made by the subcontractors and suppliers to the surety. ...

., XXXXX in the vehicle's value at the termination of the lease period, any shortfall amount paid XXXXX in this example) is considered for GST purposes to be additional consideration paid in relation to the supply of the vehicle. Accordingly, the lessee is required to pay, and the lessor is required to collect GST equal to 7% of the value of the consideration for the supply (i.e. ... The amount of XXXXX paid by the lessor to the lessee at the termination of the lease period is not considered for GST purposes to be an adjustment (i.e., reduction) of the consideration paid by the lessee for the supply of leasing the vehicle from the lessor during that period but is regarded as consideration paid in relation to the vehicle's leasehold interest. ...

Therefore, Section 10 of Part VI of Schedule V exempts the supply of schools or hospitals where all or substantially all of these schools or hospitals are provided by the province for no consideration in an arm's length transaction. Subsection 155(1) of the ETA provides an anti-avoidance rule whereby certain non-arm's length supplies made for less than fair market value or for no consideration are deemed to have been made for fair market value. ... Therefore, Subparagraph 155(2)(b)(iii) and Section 10 of Part VI of Schedule V to the ETA act together to exempt the supply of schools or hospitals where all or substantially all of these schools or hospitals are provided by the province for no consideration in a non-arm's length transaction. ...

Are the voluntary contributions consideration for a supply? Analysis To determine if a voluntary contribution is consideration for a supply, it must first be established whether the recipient has, or will, make a supply as a result of having received the contribution. ... If no, the contributions will not be consideration for a supply since there is no activity involved that can be considered to be a supply. ... Since there is no activity present that can be considered to be a supply by the Club, that is, lifetime members do not receive any property, services, or rights or privileges beyond those that occur as a result of their already existing membership, the amounts contributed are not regarded as consideration for a supply (in other words, those rights and privileges conferred to lifetime members are conferred by reason of their membership). ...

Pursuant to subsection 165(1) of the Excise Tax Act, every recipient of a taxable supply made in Canada must pay the GST on the value of consideration for the supply unless a specific provision applies to exempt or zero-rate it. ... Explanation Subsection 2(a) of the Egg Production Agreement specifically states that the Producer will be paid XXXXX of the net egg receipts in consideration for the service of maintaining the flock. ... Further, any consideration received that relates to the service provided such as the FCB and the Production Bonus will take on the tax status of the supply, taxable at 7%. ...