Search - consideration

The development levy will be considered to be consideration for an exempt supply of a permit or similar right under Sched. ... Although the supply of the construction services by the developer will be considered to be a taxable supply, no GST or HST will be payable by the municipality if this supply is made for no consideration. Fees collected by the municipality from subsequent developers would generally become consideration for a taxable supply when the fees are used to reimburse the developer. ...

27 February 2020 CBA Roundtable, Q.15-- summary under Land Summary Under Tax Topics- General Concepts- Fair Market Value- Land sales of used apartment buildings used as comparables for cap rate purposes may reflect embedded GST/HST In the context of an inquiry on determining the fair market value of a new apartment building (or other ”MURC”) when there is a self-supply at the time of substantial completion and first occupancy, CRA noted that where the cap rate used in applying the income approach to valuing the MURC was derived from comparable sales of occupied MURCs, such comparables may reflect “GST/HST that may be imbedded in the consideration for a supply as a result of the GST/HST having been imposed at an earlier time.” On the other hand, “where the consideration of a taxable supply of a residential complex is used as a comparable in a valuation methodology, the GST/HST imposed on that supply, even where the supply was ‘GST/HST included’, is excluded from the consideration.” ...

This is achieved by deeming the value of the farmee's contribution as consideration for any property or service given by the farmor to the farmee under the agreement to be nil. However, if part of the consideration given by the farmor for the farmee's contribution is a service or property (each of which is referred to as the farmor's additional contribution) that is not a natural resource right in respect of unproven property: the farmee is deemed to have supplied a separate taxable service to the farmor and this separate service is deemed to be consideration for the farmor's additional contribution; and the value of the farmee's service is deemed to be equal to the fair market value of the farmor's additional contribution. ... In turn, the farmee is deemed to have supplied a service to the farmor for the same value of consideration that was paid for the equipment and must charge tax to the farmor, which is calculated on $8,000. ...

Example of (rare) non-attributable inputs Example 6 Financial Institution F makes taxable supplies for consideration and exempt supplies. ... Direct input where website indirectly promotes the FI’s business Example 7 Financial Institution G makes both taxable supplies for consideration and exempt supplies. ... This is because it is not an excluded input or an exclusive input and it can, at least in part, be attributed to the making of particular supplies (both taxable supplies for consideration and exempt supplies). ...

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. ...

Where the consignee is a recipient of an imported taxable supply of the drop-shipped goods, the consignee must self-assess tax on the value of the consideration for the supply of the goods made by the unregistered non-resident to the consignee. The consignee is required to self-assess GST on the value of the consideration for the imported taxable supply or, HST on the value of the consideration for the imported taxable supply where physical possession of the drop-shipped goods is transferred to the registrant in a participating province ...

After finding that the registrant is not supplying financial services (so that the commissions earned by it from the merchants are not exempt), CRA remarks that: Since the Agreement indicates that the merchants intend to supply the goods and services otherwise valued at the regular price for the promotional price paid for the voucher, the value of the consideration upon which GST/HST must be accounted for should be determined by reference to the [discounted] promotional price. ... A gift certificate is a device (e.g. voucher, receipt, ticket) that usually has a monetary value or is for a particular supply of property or service that can be redeemed on the purchase of property or a service from a particular supplier; i.e. the supplier agrees to accept the device as consideration, or a part thereof, towards the purchase of property or a service, for which consideration was given, and that has no intrinsic value. ...

The insurance premium is paid to a related corporation, and as such the premium is consideration for a specified non‑arm's length supply and is a permitted deduction under paragraph (k) of the definition of permitted deduction. However, paragraph (k) states that the consideration for the supply does not include an amount that is loading. ... But any portion of the insurance premium covering the net premium of the insurance policy is excluded from the amount determined to be loading because of the exclusion in the definition of loading, and therefore would be part of the consideration for the specified non‑arm's length supply that is a permitted deduction. ...

If Project Co's normal business practise in the circumstances is to issue invoices for some of the consideration payable as construction progresses, then tax will have become payable on the date any such invoices would have been issued. And if any part of the consideration that is reasonably attributable to the construction of the [facility] has not been paid or become payable by [mm/dd/yyyy], tax on such consideration will become payable on that date. ...

. … Therefore, airlines...would be required to collect the GST/HST on the net value of the consideration for the award ticket once the accumulated mileage credits have been applied to reduce the value of the consideration for the supply. When a coupon is accepted as the total consideration for a supply, then no GST/HST is payable. ...