Search - consideration

As a result of the application of paragraph 152(1)(c) and subsection 168(1), the supply of XXXXX by the Distributor to the Customer is made at the time the consideration is due under the written agreement, i.e., three days after the vessel containing the XXXXX leaves the Canadian port. ... Contrary to the suggestion in your letter, the provisions of paragraph 152(1)(c) of the Act and subsection 168(1) of the Act, which deal with when consideration for a taxable supply comes due and the timing of the liability for payment of the tax under Division II, are not relevant when determining the place of supply by way of sale of tangible personal property. ...

The flowers are being supplied to the consignee for no consideration. The supply of the flowers by Florist 2 to the wire service is, therefore, deemed to be made for "nil" consideration under the provisions of subparagraph 179(1)(c.2)(i) of the Act. 8. ...

You suggest that it would be consistent with the policy underlying proposed section 232.1 that the allowances paid to XXXXX under its contractual arrangements be accorded a "no consideration" treatment. You also suggest that proposed section 232.1 be amended to provide the "no consideration" treatment to an allowance paid to a person that "arranges" for supplies between registrants (e.g. between a manufacturer and that person's franchisees) in circumstances where that person does not acquire property exclusively for supply by way of sale for a price in money in the course of its commercial activities. ...

Further, reimbursements and advances received from members for these services represent taxable consideration for these supplies and so are subject to the tax. ... Rather, as noted above, it appears that the tax properly applies to the consideration (reimbursements, advances) paid by member clubs for the taxable services provided by bingo associations through their employees, since the associations are generally GST registrants. ...

The continuous journey would also be zero-rated if it originated within the taxation area, but outside Canada, and the recipient of the supply tenders the consideration for the supply at a place outside Canada. Also, please note that a proposed amendment to paragraph 3(c) of Part VII of Schedule VI would remove the requirement that consideration be tendered outside Canada for the zero-rating of journeys that include air travel and originate within the taxation area, but outside Canada. ...

Subsection 141.01(2) of the Excise Tax Act (ETA) provides, in part, that where a person acquires or imports a property or a service for consumption or use in the course of an endeavour of the person, that person shall be deemed to have acquired or imported the property or service for consumption or use in the course of commercial activities of the person, to the extent that the service is acquired or imported by the person for the purpose of making taxable supplies for consideration in the course of that endeavour. ... It is our view that property or services acquired or imported by a corporation in fulfilling obligations under a securities or corporations act, such as producing circulars for shareholders concerning takeover bids, would generally be considered to have been acquired or imported for the purpose of making supplies for consideration in the course of the corporation's endeavour for the purposes of section 141.01. ...

Interpretation Given Based on the information provided, we advise that the supply of bulk hemp seed is zero-rated (taxable at 0%) on sales for which consideration (i.e. payment) becomes due after April 12, 2001 or is paid after that date without having become due or on importations after April 12, 2001, provided the sale or importation meets all requirements set out in either of the proposed section 3.1 of Part IV of Schedule VI or the proposed section 12 of Schedule VII to the Excise Tax Act ("the Act"). ... These proposed amendments apply to sales for which all or part of the consideration (i.e. payment) becomes due after April 12, 2001, and to importations after April 12, 2001. ...

Given industry standards, we submit that a "reasonable" period would be approximately 3 months, taking into consideration the necessary system changes, the time necessary to advise all participants in the distribution chain, etc. ... Changes in the labelling, packaging and/or marketing will not necessarily result in a different tax status Although we consider placement of a product in store aisles as a relevant consideration, it alone is not considered a determinative factor. ...

Paragraph 123(1)(n) of "financial service" definition: Where the fee is paid as consideration for a service other than one set out at 123(1)(a)-(m), it will be excluded at para. 123(1)(n). As discussed above, the facts indicate that the fee is charged as consideration for a financial service. ...

Interpretation Requested It is our understanding based upon your letter of September 20, 2001 and our discussions with XXXXX that you are requesting re-consideration of our position that the XXXXX is not entitled to claim ITCs related to the construction of the Centre (This position was communicated in a telephone conversation on XXXXX and in an interpretation letter dated XXXXX.). ... This provision permits a PSB, for a particular reporting period in which the SQM election is in effect, to claim ITCs for improvements ("Improvement" for purposes of Part IX of the ETA and the Regulations thereto is defined in subsection 123(1) as: "... in respect of property of a person, means any property or service supplied to, or goods imported by, the person for the purpose of improving the property, to the extent that the consideration paid or payable by the person for the property or service or the value of the goods is, or would be if the person were a taxpayer under the Income Tax Act, included in determining the cost or, in the case of property that is capital property of the person, the adjusted cost base to the person of the property for the purposes of that) made to real property, provided such real property is acquired by way of purchase. ...