Search - consideration

XXXXX has specifically asked whether XXXXX is incurring the expenses under Paragraphs 3 & 4 of the standard agreements as an agent of the property owners or if the reimbursement of these expenses is deemed, pursuant to section 178 of the Excise Tax Act (ETA), to be part of the consideration for the supply of XXXXX services to the property owners. ... However, the importance of any one indicator will depend on the facts of the specific expense under consideration. ...

There may be occasions where the GST registered mail order company has charged or collected from another person tax under Division II calculated on the consideration, and subsequently adjusts the consideration. ...

When determining who is considered to have received a supply, you may wish to refer to the definition of "recipient" contained in section 123(1) of the ETA as follows: "recipient" of a supply of property or a service means (a) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration,... ...

The notional ITC was equal to the tax fraction (7/107ths) of the consideration for the supply at the time it was paid. ... When the item is not claimed within the redemption period, it is considered seized for the purpose of satisfying a debt obligation pursuant to subsection 183(1) and the creditor is deemed to have received, at that time, a supply by way of sale and that supply is deemed to have been made for no consideration. ...

Other Items Delayed Exam Fees It is our position that delayed exam fees represent consideration for either a supply of intangible personal property (i.e., a right) or a service so that, in either case, the supply would be exempt pursuant to section 2 of Part VI to Schedule V. ... For example, section 10 of Part VI exempts a supply of tangible personal property made by a public institution where such supplies are made for no consideration and section 6 of Part VI exempts a supply of tangible personal property and certain services that do not exceed the direct cost. ...

Can XXXXX claim ITCs on the construction of the recreation centre, taking into consideration that the recreation centre is not used for commercial activity, but rather is "appurtenant to the exempt activity of renting residential land"? ... "maintenance fee", etc.) are considered to be part of the consideration for the supply of the real property and therefore, take on the same tax status, in this case that being GST exempt. ...

Consequently, if a physician or other practitioner orders these diagnostic services, the consideration charged for the testing procedures is exempt of the GST/HST pursuant to section 10 of Part II of Schedule V to the ETA. For example, if the CMO of a Life Insurance company orders a laboratory, radiological or other diagnostic test for an individual, the consideration for the supply of this service is exempt whether billed to the individual patient, insurance company or other entity. ...

Also, paragraph 6(b) of Part I of Schedule V would only apply in this case where: •   the purpose of the supply described in paragraph 6(b) is for the individual, as lessee, to occupy the unit as a place of residence or lodging as opposed to re-supplying the unit in the course of a business, and •   the consideration for the supply described in 6(b) does not exceed $20 for each day of occupancy. ... For example, if one assumes that the lessees' intend to use their respective units as their own places of residence or lodging (as would appear to be the case for XXXXX then the supplies made by XXXXX. would likely be exempt in accordance with paragraph 6(b) of Part I of Schedule V on the basis that the consideration for these supplies would not likely exceed $20 for each day of occupancy. ...

Comments The opinion provided by the XXXXX April 1, 1998 that each of the strata units in XXXXX were not residential complexes at the time ownership of the units passed from XXXXX to the purchasers appears to have been based largely upon two considerations: •   the Section 215 Convenant making the placing or listing of all units in XXXXX with a rental pool mandatory, and •   despite provision in the Section 215 XXXXX allowing for unlimited personal use by the owner of a unit, their view that it is not reasonable that a person would purchase a unit with the intention of using it primarily for personal use given the substantial restrictions and additional fees placed upon personal use and given the substantial fixed costs of maintaining a unit in XXXXX[.] ... For purposes of the definition of "residential complex" and the application of the exclusionary provisions following paragraph (e) of that definition, the intentions of the purchaser are generally not taken into consideration in determining whether property held for the purpose of supply is a residential complex. ...

To assist you in determining whether a particular cost item would be considered to be an "improvement", we should advise that subsection 123(1) of the Act defines improvements to capital property to be property or services acquired or imported for use in improving the capital property to the extent that the consideration for the property or services is included in determining the adjusted case base of the capital property for the purposes of the Income Tax Act (or would be so included if the person were a taxpayer under the Income Tax Act). ... Under paragraph (a) of the definition of "basic tax content" in subsection 123(1), the BTC of the XXXXX property would be: (A- B) x C A is the total of (i) GST payable on acquisition XXXXX (ii) GST payable on improvements XXXXX XXXXX B is the total of * (i) part of A the XXXXX is exempt from paying XXXXX (iii) part of A the XXXXX was entitled to as a rebate (XXXXX) XXXXX XXXXX C is the lesser of one and H/I where H is the current fair market value of the property and I is the total of the consideration paid on the acquisition of the property and improvements to the property. ...