Search - consideration

The correct amount of GST calculated in accordance with subsection 173(1) of the ETA as it applies prior to the technical bill changes is as follows: Standby charge $4,800.00 Less: Amounts reimbursed   1,200.00 Taxable benefit $3,600.00 Tax deemed collected on the standby charge (7% x $3,600.00) $   252.00 Add: tax deemed collected on the reimbursement (7/107 x $1,200.00)        78.50 Total tax deemed collected $   330.50 For your information, under the proposed legislative changes to subsection 173(1) of the ETA, the GST deemed collected by the employer is: Standby charge (benefit amount) $3,600.00 Add: Amount reimbursed   1,200.00 Total consideration $4,800.00 Tax deemed collected on the total consideration (6/106 x $4,800.00) $   271.70 Answer 3(b): Under the proposed legislation, the GST remittance by a registrant pursuant to subsection 173(1) of the ETA would be equal to: •   the prescribed percentage of the total consideration (i.e., the total of the benefit amount and all reimbursements) as required to be included in the individual's income under paragraphs 6(1)(k) or (l) of the ITA; and, •   in any other case, 6/106th of the total consideration Accordingly, the GST deemed collected will be calculated as 6/106ths of the total consideration except for automobile operating expense benefits [6(1)(k) and (l) of the ITA] which will continue to be calculated using a "prescribed percentage" [i.e., the GST remittance will be equal to the prescribed percentage (currently 5%) of the total consideration]. ... Under proposed subparagraph 173(1)(d)(v) of the ETA the total of the benefit amount and the reimbursement is deemed to be the "total consideration" payable in respect of providing property during the year to an individual or a person related to the individual. GST is then calculated accordingly under proposed subparagraph 173(1)(d)(vi) of the ETA on the total consideration rather than on a supply by supply basis as discussed above. ...

In this case, however, no consideration was given for this supply as the provision of a loan which will be fully repaid is not usually considered to be consideration for a supply. ... Thus pursuant to section 162 the consideration of XXXXX for this right is not subject to the GST. ...

Consequently, the 7% GST applies calculated on the value of the consideration, i.e., the initial evaluation fee and the ongoing program fees paid by the individuals, for this taxable supply. 1. ... A separate consideration is charged for these supplies. Most of these separate supplies of goods are subject to the 7% GST (or, where these supplies are made in a participating province, the 15% HST). Consequently, the 7% GST applies calculated on the value of the consideration paid by the individuals for these taxable supplies. ...

Under this provision, where a coupon is accepted by a registrant vendor, the value of the consideration for the supply (in your case, the award ticket) is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined exceeds the discount or exchange value of the coupon. ... Therefore, airlines that are registrants for GST/HST purposes 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. ...

The medical practitioners also receive consideration for the services they provide from XXXXX, which you referred to as "professional fees". ... For instance, where there is a supply and consideration is payable for that supply, the GST/HST is payable unless, for example, the supply is listed in Schedule V or VI of the ETA. ... The payment made by the locum or associate would represent consideration for this supply and the GST/HST would apply on the value of the consideration. ...

GST applies to the consideration payable for these supplies. Included in the consideration payable for XXXXX services are the XXXXX fee, the administration fee charged when a claim is paid, and the Insurance Premium Tax to the extent that this tax is imposed on the administrative services (i.e. not to the Insurance Premium Tax imposed on the benefits paid under the plan). ... As defined in subsection 123(1) of the ETA, "consideration includes any amount that is payable for a supply by operation of law". ... As such, these services would be taxable supplies and GST applies to the consideration payable for these supplies. ...

Are the payments made by XXXXX to XXXXX under Agreement I consideration for a supply? ... Are the payments made by XXXXX to XXXXX under Agreement II covering the period October 25, 1993 to April 1994 consideration for a supply? ... As such, it must be established whether the payments made are consideration for any supply which may be provided under Agreement I. ...

[INTERPRETATION REQUESTED] […][You ask if a registrant can adjust] previously filed net tax returns arising from […][foreign currency] transactions by using the day the GST/HST is payable for converting the value of the consideration for a supply into Canadian currency pursuant to section 159 of the ETA or by using another day acceptable to the Minster as described in GST/HST Memorandum 3.6, Conversion of Foreign Currency, provided the method used is applied consistently for a period of at least one year. ... [INTERPRETATION GIVEN] With respect to retroactively adjusting the method for converting the value of consideration, […], [a registrant] may request an adjustment to its previously filed net tax returns within four years after the later of the day the return was filed and the due date of the return. For a particular reporting period(s) being adjusted, [the registrant] may use the exchange rate on the day the GST/HST was payable to convert the value of the consideration for a supply into Canadian currency pursuant to section 159 or by using another day acceptable to the Minster as described in GST/HST Memorandum 3.6 provided the method used is applied consistently for a period of at least one year. […]. ...

With respect to expenses incurred by a supplier in the provision of services to a recipient, section 178 of the Act deems any reimbursement of these expenses to be part of the consideration for the supply of the service, except where the expenses are incurred as an agent of the recipient. ... The amount of $100 will be added to the consideration payable by the recipient. GST will be charged on the total consideration depending on the tax status of the supply. ...

Interpretation Requested Section 6 of Part VII of Schedule VI to the ETA zero-rates a supply of a freight transportation service in respect of the transportation of tangible personal property from a place in Canada to a place outside Canada where the value of the consideration for the supply is $5 or more. ... Where the total consideration for that supply is $5 or more, the supply will be zero-rated in accordance with section 6 of Part VII of Schedule VI. 2) Where non-commercial goods are transported outside Canada (international outbound freight), are invoiced to a single customer on a single invoice, and the value of the consideration for the transportation is $5 or more, the supply will be zero-rated in accordance with section 6 of Part VII of Schedule VI. ...