Search - consideration

For example, a person makes quilts and sells them to a store for consideration of $50 per quilt plus 10 per cent of the amount for which the store sells the quilt. ... However, the tax on the value of the consideration which is the percentage of the sale made by the store cannot be ascertained until the quilt has been sold by the store. ... Tax on the balance of the consideration (the rental income) would become payable when the amount became ascertainable. ...

GST/HST Memorandum 19.3.1 “Rebate for Builder-Built Unit (Land Purchased)” July 1998-- summary under Paragraph 254(2)(h) Summary Under Tax Topics- Excise Tax Act- Section 254- Subsection 254(2)- Paragraph 254(2)(h) Determination of consideration 10. In addition to amounts paid or payable in respect of the purchase of the unit (e.g., the housing rebate when the purchaser and builder agree to include it as part of the consideration for the unit), total consideration includes payment to the builder for:....(c) other supplies (for example, free-standing appliances) if they: (i) form part of an all-inclusive single consideration made at the time of signing the agreement of purchase and sale for the unit and for which there is no separate identification in the agreement for the consideration paid or payable for the supplies, (ii) are of the type normally supplied by the builder for similar residences, that is, they were not custom ordered (as opposed to simple colour changes or normal upgrades), are offered generally by others in the construction industry, and relate to the use and enjoyment of the unit by the purchaser, and (iii) the purchaser did not have a choice of taking a cash discount or other supply instead of the supply in question;... ...

Bulletin LTT 6-2000 Leases and the Land Transfer Tax Act June 2000-- summary under Subsection 1(6) Summary Under Tax Topics- Other Legislation/Constitution- Ontario- Land Transfer Tax Act- Subsection 1(6) Documentary requirements/no options Although leases that cannot exceed 50 years are not subject to tax, an Affidavit of Residence and Value of the Consideration is required for registered conveyances. ... Consideration equals the FMV of the land (including building) where remaining lease term can exceed 50 years Paragraph (c) of the definition of "value of the consideration" in section 1 of the Act sets out the value of consideration of land conveyed by lease not exempt from tax (see 1 above) as follows: "in the case where a lease of land, a transfer of the interest of a lessee under a lease of land, or a notice of any kind in writing signifying the existence of an unregistered lease of land or of an unregistered transfer of the interest of a lessee under a lease of land is not exempt from tax by virtue of subsection (6), the fair market value, ascertained as at the time of the tender of submission for registration, of the land to which the lease extends or of a smaller portion of such land if only such smaller portion is conveyed." This definition also applies to the determination of the consideration in the case of an unregistered disposition under section 3 of the Act, that is a lease that is not exempt from tax pursuant to clause 3(1)(f). ...

Land Transfer Tax and the Treatment of Unregistered Dispositions of a Beneficial Interest in Land 6 April 2022-- summary under Subsection 3(1) Summary Under Tax Topics- Other Legislation/Constitution- Ontario- Land Transfer Tax Act- Section 3- Subsection 3(1) S. 3 tax not triggered until consideration paid Completion of a transaction occurs when the value of the consideration called for in the agreement is satisfied. Clause 3 (1)(g) reflects this indicator of completion of an agreement, and in effect suspends section 3 tax being levied on a purchaser or assignee until such time, if ever, as the conditions at 3(1)(g)(i) and (ii) cease to exist. … For example, A and B execute an agreement in which A agrees to sell and B agrees to buy an interest in land. … The consideration is the assumption of an existing mortgage and payment of cash. ... This is due to the fact that the provisions in subclauses 3(1)(g)(i) and (ii), respectively, being the value of the consideration specified in the agreement has not been paid to or for the benefit of the transferor and the liability for the value of the consideration specified in the agreement has not been assumed by or on behalf of the transferee have not been fulfilled....Back to Back agreements of purchase and sale In some instances A will enter into an agreement of purchase and sale of land with B.... ...

CRA Audit Manual §27.6.4-- summary under Subsection 153(2) Summary Under Tax Topics- Excise Tax Act- Section 153- Subsection 153(2) S. 153(2) is anti-avoidance provision Combined Consideration Subsection 153(2) is an anti-avoidance rule that applies where there has been an unreasonable apportionment of the consideration for two or more supplies or for supplies and other matters. This subsection requires a reasonable attribution of the total amount of consideration between the separate billings and charges. ...

GST/HST Memorandum 19.3.1.2 “Stated Price Net of Rebate” December 2007-- summary under Paragraph 254(2)(h) Summary Under Tax Topics- Excise Tax Act- Section 254- Subsection 254(2)- Paragraph 254(2)(h) Amount of consideration where price is net of rebate 7. The “consideration” payable for the purchase of a unit is the amount to be paid for the unit before any calculation of the tax payable and rebate entitlement in respect of the purchase of the unit. If the builder and the purchaser agree to use a stated price net of rebate for the unit, the rebate amount credited by the builder must be considered in determining the value of the consideration payable for the unit upon which the tax is payable. ...

Excise and GST/HST News- No. 108 September 2020-- summary under Paragraph 154(2)(b) Summary Under Tax Topics- Excise Tax Act- Section 154- Subsection 154(2)- Paragraph 154(2)(b) B.C. sales tax on vapour products is included in the value of the consideration Although taxes imposed under BC’s Provincial Sales Tax Act are in most cases prescribed and therefore excluded from the consideration for a supply, the new provincial sales tax rate of 20% on sales and leases of vapour products exceeds BC’s specified tax rate of 12% set out in the Regulations. As such, it is not a prescribed tax and is therefore included in the value of the consideration for the supply of vapour products in BC. ...

Bulletin B-095 June 2011 "The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules)"-- summary under Paragraph 218.1(1.2)(b) Summary Under Tax Topics- Excise Tax Act- Subsection 218.1- Subsection 218.1(1.2)- Paragraph 218.1(1.2)(b) Test of whether the expense (re qualifying consideration) was used in a participating-province activity The provincial part of the HST is determined by a formula that in general terms is the qualifying consideration multiplied by the extent (expressed as a percentage) to which the expense that corresponds to the qualifying consideration was used in carrying on an activity of the qualifying taxpayer in the particular province. ...

Bulletin B-095 June 2011 "The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules)"-- summary under Paragraph 217.1(2)(a) Summary Under Tax Topics- Excise Tax Act- Section 217.1- Subsection 217.1(2)- Paragraph 217.1(2)(a) Canco deductions for parent head office expenses are included Examples- Qualifying consideration- Part A Example 1 A non-resident FI has its head office outside Canada and a branch in Canada. ... Therefore the amount is included in Part A of qualifying consideration. … Example 3 Data processing services were performed outside Canada by a foreign parent corporation for the benefit of a qualifying taxpayer resident in Canada in the qualifying taxpayer's Canadian activities. ... Therefore, the amount of the expense is included in Part A of qualifying consideration. ...

Bulletin B-095 June 2011 "The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules)"-- summary under Specified Arm's Length Supply Summary Under Tax Topics- Excise Tax Act- Section 217- Specified Arm's Length Supply Example of specified non-arm’s length supply Qualifying consideration- Permitted deduction … For example, a qualifying taxpayer that is a non-resident FI incurred an expense for an insurance premium for property outside Canada used in part in respect of its Canadian branch. ... Therefore, the amount is included in Part A of qualifying consideration, but since the supply of the insurance policy was made by an unrelated third party it would also be deducted under Part B, and so there would not be an amount subject to self-assessment. ...