Search - consideration

P-239 "Meaning of the Term 'Arranging For' as Provided in the Definition of 'Financial Service'" 30 January 2002. 31 March 2000 HQ Letter 25522-- summary under Financial Service Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Financial Service A commitment fee payable in connection with a merger transaction entailing share and note consideration represented consideration for a financial supply. A break-up fee (referred to as a "non-completion fee") did not represent consideration for a supply, nor was it governed by subsection 182(1) as the agreement to which the fee related was an agreement for the making of an exempt financial service. ...

Since the amounts left over were not in respect of the consideration for the purchase, they were viewed as being in respect of a separate consideration for the supply of administration services. Accordingly, ss.138 and 139 were not applicable as the single consideration criterion contained in those sections had not been satisfied. ...

21 December 2016 Ruling 157873-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply assignment fee was part of consideration for assignment A car dealer enters into contracts with customers, which could be conditional sales contracts, instalment sales contracts, credit agreements or finance contracts with instalments, and immediately sells each contract to a lender for cash consideration. Consistently with Canada Trustco, CRA found that a separate fee charged by the car dealer on those sales was also part of the consideration for the assignment, so that the fee was also exempted. ...

GST/HST Notice 323, Proposed GST/HST Treatment of Assignment Sales, May 2022-- summary under Paragraph 254(2)(i) Summary Under Tax Topics- Excise Tax Act- Section 254- Subsection 254(2)- Paragraph 254(2)(i) Effect of s. 192.1 on amount of rebate (p. 4 under Q.4) CRA noted that the amount of the rebate is based on the total tax paid and the total consideration for the taxable supply of the house, including any consideration paid by an assignee for a taxable assignment sale of an agreement to purchase the house from the builder, so that s. 192.1, which renders non-taxable assignments, taxable, but excludes the amount attributable to a deposit from the consideration for the taxable assignment sales, can affect the federal or provincial rebate amount. ...

A provincial levy that is collectible by the supplier either in respect of a supply of property or services or in respect of the consumption or use of the property or services, is included in the value of the consideration for the supply unless the provincial levy is payable by the recipient of the supply and is a prescribed provincial levy. ... Accordingly, under the Act, the amount identified by the retailer as a "stewardship fee" on the invoice forms part of the consideration for the tires and is subject to the GST. ... The amount of the carbon tax is included in the consideration payable for the supply of the gasoline upon which the supplier will calculate the HST. ...

. … [U]nder subsection 141.02(8), the following rules apply: the extent to which the consumption or use of the residual input is for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class of financial institution the extent to which the consumption or use of the residual input is for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class of financial institution (that difference being 88% for banks, 90% for insurers and 85% for securities dealers) the extent to which the residual input is acquired by the qualifying institution for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class of financial institution the extent to which the residual input is acquired by the qualifying institution for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class of financial institution (that difference being 88% for banks, 90% for insurers and 85% for securities dealers) for the purpose of determining an ITC in respect of the residual input of the qualifying institution, the description of Element B of the formula in subsection 169(1) is deemed to be equal to the prescribed percentage for the prescribed class of financial institution Required to follow the usual rules for exclusive and excluded inputs A qualifying institution will still generally be required to follow the rules in subsection 141.02(6) in respect of each exclusive input and use a specified method pursuant to subsection 141.02(14) for each excluded input. ... As a result, the extent to which each of Insurer G’s direct and non-attributable inputs is acquired, imported or brought into a participating province, or consumed or used, for the purpose of making taxable supplies for consideration is 10% (that is, the prescribed percentage for insurers) and the extent to which each of Insurer G’s direct and non-attributable inputs is acquired, imported or brought into a participating province, or consumed or used, for purposes other than making taxable supplies for consideration is 90%. ...

3 April 2017 Interpretation 164742-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply court costs award not consideration for a supply A registered corporation, in a judgment for infringement of its copyright, was awarded costs on a solicitor and client scale plus GST/HST thereon. ... In giving its interpretation that “where the Court awards judicial costs plus GST or HST directly to a winning party, there is no amount of GST or HST to be included in the net tax calculation under paragraph 225(1)(a),” CRA stated: The costs awarded by the Court directly to the winning party are not subject to the general taxing provisions, as they do not constitute consideration for a taxable supply or a service and do not form part of the consideration paid for the lawyer’s services of the winning party. ... In other words, since the amount awarded is not consideration for a taxable supply, the amount equal to the GST/HST that is included does not represent an amount collectible or collected as or on account of tax that has to be included in the net tax calculation. ...

27 February 2020 CBA Roundtable, Q.29-- summary under Subsection 221(2) Summary Under Tax Topics- Excise Tax Act- Section 221- Subsection 221(2) determination as to whether adjustments under a statement of adjustments are consideration for the real estate turns on application of the single-supply doctrine In the context of sales of real property, the parties will normally prepare a statement of adjustments whereby, at closing, adjustments are made for expenses pre-paid by the vendor (e.g., lawn mowing or snow removal fees, property taxes, amenities fees) and/or revenues of the vendor that should partly be attributed to the purchaser (e.g. rents paid in advance by tenants), so that there is a net amount either owed to, or by, the vendor, therefore resulting in a purchase-price adjustment. ... CRA responded: [T]he adjustment for prepaid property taxes that relate to the period during which time the purchaser will be the owner of the real property is additional consideration for the sale of the real property. … With respect to other adjustments for amounts that the vendor has paid or collected and that relate to the period during which time the purchaser will be the owner of the real property, it is a question of fact as to whether the adjustments increase or decrease the value of consideration for the sale of the real property. … [I]f an obligation is inextricably tied to the real property itself, then it is likely not a separate supply from the sale of the real property and the adjustment likely increases or decreases the value of consideration, as the case may be. ...

Where consideration is payable pursuant to an invoice and the invoice includes a clause which stipulates that an additional amount will be charged if payment is not received within a reasonable period specified on the invoice, then pursuant to section 161 of the Act, the consideration due is deemed to be the amount of the consideration for the supply shown on the invoice. The tax will be payable on the value of the consideration shown on the invoice whether or not the penalty is imposed for late payment. 14. ...

Subsection 141.02(1) defines procurative extent as the extent to which property or a service is acquired for the purpose of making taxable supplies for consideration or the extent to which the property or service is acquired for purposes other than making taxable supplies for consideration. The procurative extent is used in the application of subsection 141.01(2), which generally deems the financial institution to have acquired the property or service for consumption or use in commercial activities for purposes of subsection 169(1) to the extent that the financial institution acquired the property or service for the purpose of making taxable supplies for consideration. … 11. ... Such acquired services can “be attributed to the making of particular supplies (both taxable supplies for consideration and exempt supplies).” ...