Search - consideration

On XXXXX, XXXXX transferred these roads (XXXXX) and infrastructure consisting of drainage work and paving to the Municipality for no consideration. 2. ... Pursuant to paragraph 152(1)(c) of the Excise Tax Act (ETA), where a supplier does not issue an invoice, consideration for a taxable supply becomes due on the earliest of the day the recipient is required to pay that consideration to the supplier under an agreement in writing. Therefore, when the Municipality transfers the latecomer fees to XXXXX pursuant to the Agreement, the GST should be collected and remitted by XXXXX as these payments are consideration for its supply of construction services to the Municipality. ...

Consideration for uninsured services may be charged directly to patients at the discretion of the physician. ... Annual or block fees are consideration payable by a patient for the "right" to future services. ... Therefore, the annual or block fee represents consideration for a taxable supply. ...

When payments are received from a government, there is always a possibility that the payment is a grant rather than consideration for a supply. ... We have enclosed Technical Information Bulletin B-067, Goods and Services Tax Treatment of Grants and Subsidies, to assist you in determining whether the payments you receive are grants or consideration. If the Province were giving you grants, your supplies of arranging for, described above, would be considered made for no consideration. ...

When the carrying broker executes a trade and performs clearing services in respect of that trade on behalf of the introducing broker, and charges a single fee per trade for both services, this fee is paid in consideration for an exempt financial service (Paragraphs 123(1)(d) and (l) of the definition of "financial service"), as both services provided by the carrying broker are an integral part of the arranging for the transfer of ownership of a financial instrument. 2. ... When the introducing broker executes its own trades but relies upon the carrying broker to perform clearing services for a fee per trade, the fee paid for the clearing services provided by the carrying broker is paid in consideration for a taxable administrative service. 5. When the introducing broker executes its own trades but relies upon the carrying broker to perform clearing services for a fee per trade, in addition to paying a minimum flat fee per month for clearing services, both fees paid for the clearing services provided by the carrying broker are paid in consideration for a taxable administrative service. ...

A municipality will be involved in a commercial activity and will be entitled to claim ITCs if it is making supplies of taxable construction services to a third party for consideration. ... That is, XXXXX has not incurred these costs in order to make taxable supplies for consideration but rather, is participating in these projects in the course of its ongoing municipal activities. ... The costs it incurs in the course of these projects are not inputs to any taxable supply made by XXXXX for consideration. ...

In the situation described above, XXXXX has incurred GST on the consideration paid for construction services undertaken by XXXXX. However, the information provided does not indicate that XXXXX has acquired these services for consumption use or supply in the course of making taxable supplies for consideration. ... In the present situation, XXXXX is paying consideration for taxable construction services provided by the Province. ...

Explanation Subsection 165(1) requires that every recipient of a taxable supply made in Canada is required to pay tax equal to 7% of the value of consideration for the supply. ... Since the lessee's payment is part of the consideration for a taxable supply, it is subject to GST/HST in the same way as the basic rent payable by the lessee. ... Accordingly, the amount paid by the Tenant as property taxes is additional consideration for a taxable supply made by the Landlord and is subject to the GST. ...

Ruling Given Based on the facts set out above, we rule that the levy XXXXX is consideration for a taxable supply. ... The levy paid to the XXXXX in respect of such services is regarded as consideration for these services. ... Yours truly, Susan Mills Specialty Tax Unit Financial Institutions and Real Property Division Excise and GST/HST Rulings Directorate Legislative References: 123(1) definition "supply", "consideration", "commercial activity", "service"; 165(1); 240. ...