Search - consideration

As well, the Host Rewards have to be consideration for a supply of a service, made by the sales representative, of arranging for the sale of a select product or a sales aid of the person to be a “network commission.” As defined in subsection 123(1), “consideration” includes any amount that is payable for a supply by operation of law, while a “service” means anything other than property, money, and anything that is supplied to an employer by a person who is or agrees to become an employee of the employer in the course of or in relation to the office or employment of that person. ... Therefore, hosting a party as described in the facts set out above would be considered part of the Representative’s single supply of a service of arranging for the sale of select products of the Company, and all amounts provided as consideration, including the select products provided as Host Rewards, are “network commissions.” ...

The Corporation must charge GST/HST on the value of the consideration for the supply. 3. ... For GST/HST purposes a recipient includes “where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration”. ... Based on the information provided, the Corporation is supplying a “program management service” to [Member #1] for consideration. ...

In a situation where subsection 153(4) does not apply, the trade-in does not reduce the consideration being paid for the other property. ... If it is a taxable supply that is not zero-rated, the supplier (if a registrant) must collect tax on the value of the consideration. ... This is not only evident from contract principles, but in fact is expressly spelled out in subsection 153(1) of the ETA, which provides that the consideration for a supply is equal to the amount expressed in money plus, where the consideration or a part is other than money, the fair market value of the non-monetary consideration. ...

Section 13 of Part III of Schedule V states that a student may receive for a single consideration only the right to receive at a restaurant or cafeteria at the university or college not less than 10 meals weekly throughout the period. ... Taking into consideration the requirements of section 13 of Part III of Schedule V, we will respond to each of your questions separately: 1. ... The CRA considers "top-ups" or the addition of funds to a qualifying meal plan to be additional consideration for the same supply. ...

. * [The Corporation] is liable to pay the consideration for the supplies made by [A Co] and [B Co] and is the recipient of those supplies. ... Application of TIB B-32 Under TIB B-32, where pension related expenses incurred by the employer (i.e., the person liable to pay the consideration under the agreement for the supply) have been paid for out of pension plan trust assets, the payment by the trust is generally treated as consideration for a supply made by the employer to the trust where: * the plan trust pays the third party supplier directly, * the employer invoiced the plan trust for the costs of the inputs, and/or * the plan trust reimburses the employer. ... In the present case, since the pension entity paid [A Co] and [B Co] directly for the investment management services, we would consider [the Corporation] to have made a taxable supply of the services to the pension entity for consideration equal to the invoice amounts. ...

Subsection 168(1) provides that “tax under this Division (Division II) in respect of a taxable supply is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due”. Subsection 152(1) indicates when consideration is due. It provides that “(…) the consideration, or a part thereof, for a taxable supply shall be deemed to become due on the earliest of a) the earlier of the day the supplier first issues an invoice in respect of the supply for that consideration or part 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 the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing.” ... Therefore, even though there is no equivalent to subsection 169(4) or to the Regulations previously mentioned, there is a reference to tax paid or payable and by inference, to the moment the consideration is due. ...

Determining when a brokerage performs its services Generally, section 43 of the New Harmonized Value-Added Tax System Regulations (the Regulations) provides that the HST at 13% applies to any consideration that become due or is paid without having become due, on or after May 1, 2010, for a taxable supply of a service made in [Participating Province X] to the extent that the consideration relates to the portion of the service performed on or after July 1, 2010. However, if all or substantially all (i.e., 90% or more) of the service is performed before July 2010, only the GST at 5% is payable on the consideration for the taxable supply of the service. ... The commission is the consideration for the taxable supply of the listing brokerage's service to the seller. ...

In other words, when a Card bearer takes a discount on a meal or beverage, Co A/ Co B is viewed as making a taxable supply of meals and beverages to *** for which it subsequently receives monetary consideration. ... Instead, they fall within subsection 181(4), which deems the value of the consideration for the supply to be the amount, if any, by which the value of the consideration for the supply as otherwise determined exceeds the exchange value of the coupon (i.e., the GST/HST applies to the price net of the coupon value). Accordingly, where a coupon confers a free meal or beverage to the user, subsection 181(4) essentially deems the value of consideration for the supply to be zero, and no tax will be payable on the supply. ...

The correct amount of GST calculated in accordance with subsection 173(1) of the ETA as it applies prior to the technical bill changes is as follows: Standby charge $4,800.00 Less: Amounts reimbursed   1,200.00 Taxable benefit $3,600.00 Tax deemed collected on the standby charge (7% x $3,600.00) $   252.00 Add: tax deemed collected on the reimbursement (7/107 x $1,200.00)        78.50 Total tax deemed collected $   330.50 For your information, under the proposed legislative changes to subsection 173(1) of the ETA, the GST deemed collected by the employer is: Standby charge (benefit amount) $3,600.00 Add: Amount reimbursed   1,200.00 Total consideration $4,800.00 Tax deemed collected on the total consideration (6/106 x $4,800.00) $   271.70 Answer 3(b): Under the proposed legislation, the GST remittance by a registrant pursuant to subsection 173(1) of the ETA would be equal to: •   the prescribed percentage of the total consideration (i.e., the total of the benefit amount and all reimbursements) as required to be included in the individual's income under paragraphs 6(1)(k) or (l) of the ITA; and, •   in any other case, 6/106th of the total consideration Accordingly, the GST deemed collected will be calculated as 6/106ths of the total consideration except for automobile operating expense benefits [6(1)(k) and (l) of the ITA] which will continue to be calculated using a "prescribed percentage" [i.e., the GST remittance will be equal to the prescribed percentage (currently 5%) of the total consideration]. ... Under proposed subparagraph 173(1)(d)(v) of the ETA the total of the benefit amount and the reimbursement is deemed to be the "total consideration" payable in respect of providing property during the year to an individual or a person related to the individual. GST is then calculated accordingly under proposed subparagraph 173(1)(d)(vi) of the ETA on the total consideration rather than on a supply by supply basis as discussed above. ...

In this case, however, no consideration was given for this supply as the provision of a loan which will be fully repaid is not usually considered to be consideration for a supply. ... Thus pursuant to section 162 the consideration of XXXXX for this right is not subject to the GST. ...