Search - consideration

Bank C uses the appraisal service directly and exclusively to provide an exempt financial service of issuing a mortgage loan to a homebuyer in Canada (that is, the service is in no way used to provide a taxable supply for consideration). The supply of the appraisal service is an exclusive input of Bank C because it is not an excluded input and it is acquired by Bank C for consumption or use directly and exclusively for purposes other than making taxable supplies for consideration (that is, for making exempt supplies of financial services). ...

The consideration paid for the actual grant of the interest may be considered as being in respect of the sale of the interest where there is no consideration related to the actual use of the underlying property. … ...

The consideration paid for the actual grant of the interest may be considered as being in respect of the sale of the interest where there is no consideration related to the actual use of the underlying property. … ...

When these charges are passed onto the third-party charterers, they are part of the consideration payable for the passenger transportation service. ... The charges for the ferry flights and crew costs would therefore form part of the consideration payable for the passenger transportation service. However…the excess valuation charges for baggage would be viewed as a separate charge in respect of a passenger's baggage and not part of the consideration payable for the supply of the passenger transportation service. ...

Specifically, where it is possible to record the actual consumption or use of a particular input in making taxable supplies for consideration and otherwise, this is a reasonable method to apply. ... Where an allocation factor is used, it should directly approximate the use of the particular input in making taxable supplies for consideration and otherwise using a systematic approach and an appropriate allocation base. ... A revenue-based method uses the ratio of revenue from making taxable supplies for consideration to total revenues to determine the ITC eligibility. … 57. ...

Therefore, commercial rationality requires consideration of the reasonable expectations of the best possible outcome for the entity. For the purpose of documenting commercial rationality of a transaction, taxpayers should provide an economic discussion to explain the nature of the transaction and should include consideration of the history of the arrangement and the activity of the broader market to justify the tested party’s decision. ... Determining how risk should be treated in a transaction will require consideration of the delineation exercise mentioned earlier, combined with an understanding of the economically relevant characteristics and the industry at large. ...

CRA stated that provided this purchase agreement (the "APS") contained all the relevant terms: and if the Purchaser is liable under the agreement to pay the consideration for the supply, then the Purchaser is required to pay the GST/HST payable on the supply. Further, if… [FinanceCo] not liable to pay consideration for the supply under that agreement, then [FinanceCo] is not liable to pay the GST/HST should the Purchaser fail to pay tax on the purchase of the Property. ...

1995 International Fiscal Association Conference, Q. 3 6363-1-- summary under Investment Business Summary Under Tax Topics- Income Tax Act- Section 95- Subsection 95(1)- Investment Business In response to a question as to how Revenue Canada assesess whether a foreign affiliate employs more than five employees full time in the active conduct of the business, CRA stated: Whether or not a foreign affiliate employs more than five full-time employees in the active conduct of its business is a question of fact and in order to make this determination it would be necessary to review all the facts surrounding the particular situation under consideration. ... Generally, it does not matter what facet of the business the employee is engaged in, provided all of the employee's duties as such are directly related to the active conduct of the business under consideration. ...

CRA stated: The Dealer's Fee paid to the Dealer may be consideration for a supply of an exempt service of arranging for a financial service under paragraph (l) depending on all of the facts and circumstances. ... However, if the Dealer's services are predominantly to "service" the Client's account, the Dealer's Fee received for such services would generally be consideration for a taxable supply. ...

One of the requirements that must be met for section 85 to apply to a transfer of property to a corporation is that the transferor receives consideration that includes at least one share of the capital stock of the corporation. It is the practice of the CCRA to accept an election under subsection 85(1) where the shares to be issued as consideration for the transferred property have not been legally authorized under the articles of the corporation at the time of the transfer provided that all of the following conditions are satisfied: (a) there is an agreement between the transferor and the transferee which requires, among other things, that the transferee issue the required shares; (b) the transferee immediately carries out the necessary steps to authorize the issuance of the shares, that is it files supplementary letters patent or articles of amendment, as the case may be; (c) once the necessary amendments to the corporation's constituting documents are made, the transferee corporation issues the shares without delay. ...