Search - consideration

For purposes of the Excise Tax Act (the "ETA"), forgiven debts pursuant to an arrangement under the Companies' Creditors Arrangement Act are considered to be bad debts as opposed to reductions of consideration. ... Opco could not pay the consideration nor the GST/HST payable in respect of the supplies. ... Rationale Suppliers A, B and C filed their returns accounting for the GST/HST payable under Division II in respect of the supplies, remitted their net tax and a portion of the debt consisting of both consideration and tax owed by Opco became uncollectible. ...

The lease payment is consideration for a supply of the right to explore for or exploit a mineral deposit and the supply is deemed not to be a supply and any consideration paid or due, in respect of such a right is deemed not to be consideration for the right pursuant to subsection 162(1) of the Act. ...

Ruling Given The consideration paid for the supply of Level II ballet to the student from Springfield Private School will be exempt of tax, since it is a mandatory prerequisite for the Level III ballet class. Also, the consideration charged for Level III ballet to the student who is eligible to receive a school credit from Springfield Private School will be exempt of tax. ... Furthermore, the consideration charged for the supply of lessons to the other dance school students who are not eligible to receive a credit will be subject to tax, even if they are in the same dance class as the Springfield student. ...

The platform may also include the collection and payment of consideration in respect of those activities. Software that exclusively allows, without any further intervention, for the following activities is not considered a platform under the rules: the processing of payments listing or advertising redirecting or transferring of users to another platform What is a relevant activity A relevant activity is: The sale of goods for consideration A relevant service What is a relevant service A relevant service is, when provided for consideration, any of the following: The rental of real or immovable property A personal service The rental of a means of transport A prescribed service Sellers who will have their information collected and reported to the CRA may include those who participate in the following activities: Sale of goods Rental of real or immovable property (both residential and commercial) Rideshare and delivery services Personal services What are personal services Personal services are time- or task-based work performed by one or more individuals at the request of a user. ...

Definitions Amount of advantage: The total value of all property, services, compensation or other benefits to which the donor of a property, or a person not dealing at arm's length with the donor, is entitled as partial consideration for, or in gratitude for, the gift. ... To determine whether there is a gift, certain factors are taken into consideration, including: whether the expenses are incurred voluntarily or whether the volunteer was compelled to assume them For example, prior to agreeing to work on behalf of a charity, the individual voluntarily agrees to incur the hardships and costs associated with the work. The payment of the expenses would not constitute a gift if the volunteer is somehow compelled to assume them. whether the consideration accruing to the volunteer negates donative intent (that is, intention to give) For example, where a volunteer agrees to assume travel costs to work abroad for the charity, and then takes the opportunity to take a three-week vacation at the end or beginning of the work term. ...

The inclusion rate of zero applies if you donate any of the following property: a share, debt obligation, or right listed on a designated stock exchange a share of the capital stock of a mutual fund corporation a unit of a mutual fund trust a prescribed debt obligation an interest in a related segregated fund trust ecologically sensitive land (including a covenant, an easement, or in the case of land in Quebec, a personal servitude (when certain conditions are met), or a real servitude donated to certain qualified donees other than a private foundation (for more information, see "Gifts of ecologically sensitive land" in Pamphlet P113, Gifts and Income Tax) For donations of publicly traded securities, the inclusion rate of zero also applies to any capital gain realized on the exchange of shares of the capital stock of a corporation for those publicly listed securities donated when they meet all of the following conditions: at the time they were issued and at the time of disposition, the shares of the capital stock of a corporation included a condition allowing the holder to exchange them for the publicly traded securities the publicly traded securities are the only consideration received on the exchange the publicly traded securities are donated within 30 days of the exchange In cases where the exchanged property is a partnership interest (other than prescribed interests in a partnership), the capital gain will generally be the lesser of: the capital gain otherwise determined the amount, if any, by which the cost to the donor of the exchanged interests (plus any contributions to partnership capital by the donor) exceeds the ACB of those interests (determined without reference to distributions of partnership profits or capital) If you donate property to a qualified donee that is, at the time of the donation, included in a flow-through share (FTS) class of property, in addition to any capital gain that would otherwise be subject to the zero inclusion rate discussed earlier, you are deemed to have a capital gain from the disposition of another capital property equal to the lesser of the following amounts: the amount of your exemption threshold, at that time, in respect of the FTS class of property the total capital gains from the actual disposition For more information, call 1-800-959-8281. ... At that time, the amount of the gift that you may claim is generally equal to: where the option is exercised by the qualified donee, the FMV of the underlying property minus any consideration that you receive from the qualified donee for the property and the option where the option is sold by the qualified donee, the lesser of: the FMV of the underlying property the FMV of any consideration, other than a non-qualifying security of any person, received by the qualified donee for the option minus any consideration that you receive from the qualified donee for the option. ...

The ATSC is payable by a person acquiring an air transportation service that includes a chargeable emplanement at the time any consideration is paid or payable for the service. Where no consideration is paid or payable, the ATSC is payable at the time the ticket is issued for the service. ... The new ATSC rates will apply to air transportation services that include a chargeable emplanement on or after May 1, 2024, if any consideration is paid on or after that date. ...

In particular, available financial account identifiers should be provided where the seller resides in a reportable jurisdiction or an immovable property with respect to which relevant services are being provided by a seller is located in a reportable jurisdiction The name of the holder of the financial account to which the consideration is paid or credited (if different from the name of the seller and if available to the platform operator), along with any other identifying information in respect of that account holder available to the platform operator Activity information Total consideration paid or credited to the seller in the reporting period in respect of relevant activities (broken down by calendar quarter) and the number of such relevant activities What is consideration Consideration is compensation in any form that is paid or credited to a seller in connection with relevant activities, the amount of which is known or reasonably knowable by the platform operator. ...

False or misleading information Failing to file a return Misrepresentation of a tax matter by a third party Failing to provide the tax shelter identification number Providing an incorrect tax shelter identification number False or misleading information Under subsection 237.1(7.4), every person: who files false or misleading information in Form T5001, Application for Tax Shelter Identification Number and Undertaking to Keep Books and Records who as a principal or as an agent sells, issues or accepts consideration in respect of a tax shelter before the Minister of National Revenue has issued an identification number is liable to a penalty that is the greater of: $500 25% of the greater of: the total of all consideration received or receivable in respect of the tax shelter before the correct information is filed with the minister, or the identification number is issued the total of all amounts stated or represented to be the value of property a person who acquires or invests in the tax shelter could donate to a qualified donee, if the tax shelter is a gifting arrangement and consideration has been received or is receivable before the correct information is filed with the minister, or the identification number is issued Failing to file a return Under subsection 237.1(7.5), every person who fails to: file an information return in response to a demand by the CRA report in the return: the name, address and either the social insurance number or business number of each participant who acquires or otherwise invests in the tax shelter in the year an amount paid by a participant in respect of the tax shelter is liable to a penalty that is 25% of the greater of: the total of all consideration received or receivable in respect of a tax shelter from a particular person in respect of whom the required information had not been reported at or before the time that the demand was issued or the return was filed if the tax shelter is a gifting arrangement, the total of all amounts stated or represented to be the value of property that the particular person could donate to a qualified donee Misrepresentation of a tax matter by a third party The Income Tax Act provides for third-party civil penalties to deter third parties from making false statements or omissions in relation to income tax or GST/HST matters. ...

You may be entitled to an inclusion rate of zero on any capital gain realized on such gifts if you donate: a share of the capital stock of a mutual fund corporation a unit of a mutual fund trust an interest in a related segregated fund trust a prescribed debt obligation a share, debt obligation, or right listed on a designated stock exchange certified ecologically sensitive land including a covenant or an easement to which land is subject or, in the case of land in Quebec, a personal servitude where certain conditions are met or real servitude gifted to a qualified donee other than a private foundation a real servitude or under certain conditions, a personal servitude (for more details, see Ecologically gifts) The inclusion rate of zero is extended to any capital gain realized on the exchange of shares of the capital stock of a corporation for securities listed in the first five bullets above that are then donated if the capital stock shares meet all of the following conditions: at the time they were issued and at the time of disposition, the shares included a condition allowing the holder to exchange them for the securities the securities are the only consideration received on the exchange the securities are donated within 30 days of the exchange If the exchanged property is a partnership interest (other than prescribed interests in a partnership), the capital gain will generally be whichever of the following amounts is less: the capital gain otherwise determined the amount, if any, by which the cost to the donor of the exchanged interests, plus any contributions to partnership capital by the donor, exceeds the ACB of those interests (determined without reference to distributions of partnership profits or capital) If you donate property to a qualified donee that is, at the time of the donation, included in a flow-through share (FTS) class of property, you are deemed to have a capital gain from the disposition of another capital property. ... Granting of options to a qualified donee You cannot claim a gift related to an option to acquire a property that is granted to a qualified donee until the qualified donee either exercises or sells the option: Where the option is: A) exercised by the qualified donee, the amount of the gift is generally equal to: the FMV of the underlying property, minus any consideration that you receive from the qualified donee for the property and the option B) sold by the qualified donee, the amount of the gift is equal to whichever is less: the result from A) above the result of: the FMV of any consideration (other than a non-qualifying security of any person) received by the qualified donee for the option, minus any consideration that you receive from the qualified donee for the option Completing your Form T1170 and Schedule 3 Complete Form T1170, Capital Gains on Gifts of Certain Capital Property for all donations of these properties. ...