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3 May 2000 GST/HST Interpretation 7582/HQR0001188- The General Imposition Rules under the Excise Tax Act (ETA) and the Replacement of a Destroyed Leased Vehicle Unedited CRA Tags ETA 123(1) consideration; ETA 165 XXXXX XXXXX XXXXX Attention: XXXXX Excise and GST/HST Rulings Directorate Place de Ville, Tower A, 16th Floor 320 Queen Street Ottawa, Ontario K1A 0L5Case: HQR0001188CN7582 R100667435May 3, 2000 Subject: GST/HST INTERPRETATION The General Imposition Rules under the Excise Tax Act (ETA) and the Replacement of a Destroyed Leased Vehicle Dear XXXXX I am in receipt of the facsimiles of April 30, 1998, May 1, 1998, July 2, 1998, and April 6, 1999, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to your operations. ... In this situation, the amount paid by the lessee is viewed as consideration under the agreement. ... Yours truly, Douglas Wood A/Technical Officer General Operations Unit General Operations & Border Issues Division Excise and GST/HST Rulings Directorate c.c.: Dave Caron Douglas Wood Connie Waters Don Dawson Encl.: Section 1.4 of Chapter 1 of the GST/HST Memoranda Series Legislative References: Subsection 123(1) of the ETA- "consideration" Section 165 of the ETA NCS Subject Code(s): I-11665-3 ...

Our interpretation of s. 154 of the Excise Tax Act (ETA) is that the consideration for any supplies of dutiable spirits made prior to excise duty becoming payable will not include amounts of excise duty; whereas, consideration for supplies of dutiable spirits made after the duty on the spirits has become payable will include the amount of duty. ... Although the application of s. 154 to supplies of dutiable spirits was addressed in a XXXXX interpretation to the XXXXX, most of the industry has, for a number of reasons, been treating in-bond supplies of dutiable spirits as if the duty were payable (calculating GST/HST based upon a duty-included consideration). ...

Our interpretation of s. 154 of the Excise Tax Act (ETA) is that the consideration for any supplies of dutiable spirits made prior to excise duty becoming payable will not include amounts of excise duty; whereas, consideration for supplies of dutiable spirits made after the duty on the spirits has become payable will include the amount of duty. ... Although the application of s. 154 to supplies of dutiable spirits was addressed in a XXXXX interpretation to the XXXXX, most of the industry has, for a number of reasons, been treating in-bond supplies of dutiable spirits as if the duty were payable (calculating GST based upon a duty-included consideration). ...

XXXXX pays the GST calculated on consideration that is attributable to XXXXX of the space it occupies. ... Interpretation Given It is our opinion that a participant (e.g. financial institution) in a joint venture who enters into a lease agreement with the joint venture operator for a supply of a portion of the real property that is subject to the joint venture agreement, is required to pay tax calculated on consideration that is equal to the fair market value of the use, occupation or possession of that property by the participant. ... This means that XXXXX having entered into a lease agreement with the joint venture operator for XXXXX of the space that it occupies in the building, is required to pay tax calculated on consideration that is equal to the fair market value of the total space it occupies in the building. ...

Both provisions provide guidance in determining the tax status of mixed supplies of a financial and non-financial nature when the supplies are provided for a single consideration. Neither of sections 138 or 139 apply in this situation since there is more than one consideration. ... The monthly payments made by XXXXX Trust to the Seller is consideration for a taxable supply. ...

In this situation, the payment made by the carrier to its customer to compensate for the damage done to the goods in transit, was not consideration for a taxable supply of property or services. ... In addition, it should be noted that even though the ownership of the damaged goods was transferred to the carrier as part of the settlement of the claim, the payment is not consideration for the supply of those goods. In summary, the payment of money by a carrier in settlement of a freight claim for lost or damaged goods is generally not consideration for a supply. ...

The Employer is the recipient of the Services and pays consideration and applicable GST/HST directly to the suppliers. Moreover, under the terms of the Agreement, the Employer is legally responsible for the payment of the consideration for the Services and any applicable GST/HST. ... INTERPRETATION REQUESTED You have asked us for our views on whether 1. in the case where the pension plan assets are held through a group annuity contract, there would exist a “pension entity” of the Plan; and 2. the Employer would be entitled to claim ITCs for the GST/HST paid or payable on the consideration for the Services. ...

In other words, a non-resident individual or non-resident tour company generally would continue to be able to claim a FCTIP rebate in respect of the GST/HST payable for a supply of an eligible tour package or accommodation made on or before March 22, 2017, regardless of when the consideration for the supply is paid or the tour occurs. ... If a secondary agreement for the purchase of an eligible tour package or accommodations is entered into after Budget Day, then the rebate under FCTIP will not be payable in respect of that supply, unless the supply is made before 2018 and all the consideration for that supply is paid before January 1, 2018. As a result, if a UK agent purchases an eligible tour package on April 1, 2017, at a price set by the umbrella agreement, for travel in Canada after 2017, the FCTIP rebate will only be available if the consideration for that supply is fully paid before 2018. ...

Under the terms and conditions of the Company's vehicle rental agreement, the customer agrees to rent the vehicle for consideration which may be calculated based as a specific charge, distance driven or a combination thereof. 3. ... The payment to the Company does not represent consideration for a supply. ... Where a service charge is imposed in addition to an amount for a parking/traffic violation and/or highway toll, the service charge is consideration in respect of a taxable supply of an administrative service and is subject to the GST/HST. ...

As such, GST/HST is exigible on the subsequent reimbursement by the client (to the extent that GST/HST is exigible on the consideration for the service provided by the lawyer to the client). ... Conversely, when an expense is not incurred as agent of a client, the disbursement billing is generally consideration for a supply of the legal services made by the lawyer to the client. ... As a result, the client is the person liable to pay the consideration for the supply made by the third party. ...