Search - consideration

It must be determined whether this reimbursement is the return of a deposit or if it is consideration for a supply or if perhaps an even different GST application exists pursuant to the agreement. For your information, pursuant to subsection 168(9) of the Act, a deposit is not "...considered consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply". ... The GST would not be payable on the deposit until the time the supplier applies the deposit against any consideration for a supply. ...

The compensation paid to [the Dealer] for underwriting a private placement is separate from the consideration paid for the Distribution Service. ... The Broker introduced the Investor to the Issuer as a possible funding source, including arranging various meetings between the Issuer and Investor and assisting in the discussion of possible funding alternatives. * In consideration for the Broker’s services in bringing the two parties together, the Issuer has agreed to pay the Broker a finder’s fee (Fee 1) on any financings which are arranged for the Issuer or its subsidiaries by the Investor. ... There is no further explanation provided in either Agreement 1 or Agreement 2 that details the actions, obligations, roles, or responsibilities of the Broker/Finder (i.e., [the Dealer]) for which Fee 1 or 2 (respectively) is paid as consideration for the supply of the Distribution Service. ...

For example, if all the supplies included in an invoice are taxable at 13%, the tax may be calculated on the total consideration for those supplies as opposed to calculating the tax on the consideration payable for each separate supply and then totalling the tax payable. ... However, some items in the total consideration are zero-rated and some are taxable at [...]%. ... This method uses option (a) described above which indicates clearly on the invoice or receipt the consideration paid or payable by the recipient and the actual amount of tax payable in respect of the supply. ...

BACKGROUND / FACTS [The ISO] supplies POS Terminals to merchants and charges GST/HST on the consideration. ... The ISO has not collected GST/HST on the fees received from the Merchant as consideration for its services under [Agreement 1]. ... The supply provided by the ISO to the Merchant is therefore the supply of a taxable service which the consideration charged for the service is subject to GST/HST. ...

Head lease of a nursing home prior to the amendments With respect to supplies for which consideration became due on or before February 26, 2008, or was paid on or before that date without having become due, section 6.1 of Part I of Schedule V to the ETA provided, in part, that the head lease of a residential complex may have been exempt for each lease interval iiifootnote 3. ... Head lease of a nursing home after the amendments A lessor's supplies of the residential complex portion of a nursing home will be exempt under section 6.11 of Part I of Schedule V to the ETA for each lease interval in respect of which consideration becomes due after February 26, 2008, and was not paid on or before that date or is paid after that date without becoming due. ... In such a case, the coming into force provisions for section 6.11 provide that the section applies only to those supplies for which consideration becomes due after February 26, 2008, without having been paid on or before that date, or is paid after that date without having become due. v 5. ...

XXXXX has been treating a portion of its premiums from automobile insurance policies it has issued to Canadian XXXXX companies as consideration for zero-rated supplies, evidenced by the fact that it has claimed input tax credits (ITCs) for GST/HST paid in respect of purchases acquired to the extent that they relate to these supplies. ... Issue #3- Application of GST/HST to sales of salvaged property: Subsection 184(1) provides, in part, that where at any time after 1990 personal property of a person is transferred to an insurer in the course of settling an insurance claim, there is a deemed supply of the property by the person to the insurer which is generally deemed to have been made for no consideration. ... Where XXXXX acquires or imports property and services for consumption, use or supply in the course of, or in connection with both of these activities (i.e., the sale of the salvaged vehicle and the transfer of the vehicle) it has to determine the extent to which the property or service is for use in making taxable supplies for consideration in order to determine its ITC eligibility. ...

[direct quote] Interpretation Requested You would like to know whether the Dealers' Fee payable by the Investment Manager to the Dealers is consideration for an exempt supply of "arranging for" a financial service under paragraph 123(1)(l) of the definition of "financial service". ... The Dealer's Fee paid to the Dealer may be consideration for a supply of an exempt service of arranging for a financial service under paragraph (l) depending on all of the facts and circumstances. ... However, if the Dealer's services are predominantly to "service" the Client's account, the Dealer's Fee received for such services would generally be consideration for a taxable supply. ...

Where, in consideration for a fee or commission paid by the investor to a mutual fund dealer, the dealer provides a service of assisting the investor in purchasing, redeeming or exchanging units held in the investor's account and the dealer is a financial intermediary as described in subparagraph 149(1)(a)(iii), the service would generally be an exempt supply of arranging for a financial service. Whether services, for which consideration is a commission on the purchase of the units or a trailing commission, provided by a fund dealer to a fund manager or other third party are considered to be a single supply of a financial service is a question of fact. ... Where in your Example 3, a fee is charged by the intermediary to an investor who redeems his or her DSC units/shares in an investment fund early and that fee is for services of arranging for the transfer of the units, it would generally be regarded as consideration for an exempt supply of a financial service and would not be excluded from the definition of financial service only by reason of paragraph (r.4). ...

Pursuant to subsection 6(2) of Division 2 of Part 1 of the Regulations, a supply of IPP (other than IPP that relates to real property or to TPP) in respect of which the Canadian rights can only be used primarily (more than 50%) in participating provinces is considered to be made in a particular participating province if: (a) in the case of a supply for which the value of the consideration is $300 or less that is made through a specified location of the supplier in the particular participating province and in the presence of an individual who is, or who acts on behalf of, the recipient, the IPP can be used in the particular participating province; (b) in the case of a supply that is not determined under paragraph (a) to be made in a participating province, the following conditions are satisfied: (i) in the ordinary course of business of the supplier, the supplier obtains an address (in this paragraph referred to as the "particular address") that is (A) if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address in Canada obtained by the supplier, (B) if the supplier obtains more than one address described in clause (A), the address described in that clause that is most closely connected with the supply, or (C) in any other case, the address in Canada of the recipient that is most closely connected with the supply, (ii) the particular address is in the particular participating province, and (iii) the IPP can be used in the particular participating province; and (c) in the case of a supply that is not determined under paragraph (a) or (b) to be made in a participating province, the tax rate for the particular participating province is the highest among the tax rates for the participating provinces in which the IPP can be used. ... In the case of a supply for which the value of the consideration is $300 or less that is made through a specified location of the supplier in the particular province and in the presence of an individual who is, or who acts on behalf of, the recipient, the IPP can be used in the particular province. 2. If Rule 1 does not deem the supply to be made in a province (i.e. where either the value of the consideration for the supply is more than $300 or the supply is not made through a specified location of the supplier), the supply is deemed made in a province if the supplier obtains an address of the recipient in the province in the ordinary course of its business. ...