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17 January 2007 GST/HST Ruling 83892- Eligibility for a GST/HST Transitional Rebate Unedited CRA Tags ETA 123(1) amount; ETA 123(1) consideration; ETA 123(1) invoice; ETA 123(1) money; ETA 123(1) record; ETA 123(1) supply; ETA 123(1) tax; ETA 123(1) taxable supply; ETA 133; ETA 152(1); ETA 159; ETA 165(1); ETA 165(2); ETA 165.2(1); ETA 168(2); Currency Act; Currency Exchange for Customs Valuation Regulations Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence. ... The suppliers at issue are located in Canada, but the consideration due is in US dollars. 7. ... A statistical analysis of rates between the Bank of Canada and the XXXXX Bank as reported by XXXXX in another case shows there is a negligible difference between these FX rates when used consistently for both consideration received for supplies made and payments made for supplies received. ...

For consideration of the amount agreed upon per mile, the municipality shall allow the contactor to haul product along a specified route on a municipal road. 2. ... Ruling Requested You would like to know whether the amounts payable by the contractor; i.e., haul road fees and estimated costs of road maintenance, to the municipality are consideration for a taxable supply and thus subject to the 6% GST/HST. ... The consideration for this right, which includes haul road fees and any other amounts, are based on percentages of volume hauled by the contractor as well as part of the municipality's estimated cost of maintaining the road. ...

(If a signed trade slip is not submitted to the XXXXX head office within XXXXX, XXXXX has the right to reverse authorization, in which event, it will be the responsibility of the supplier to collect another form of consideration from the purchaser.)      ... Ruling Given Trade dollars are not subject to the GST when used by a member as consideration for a supply of property and/or service irrespective of whether or not the member is a registrant for purposes of the GST. The amount of GST payable on the supply of a particular property or service is not affected when a member uses trade dollars as consideration for that particular supply. ...

Ruling Requested The municipality is providing taxable services for consideration to the province in respect of the MOA between the parties relating to the construction and maintenance of such parts of the freeway that lie within the boundaries of the municipality. ... Therefore, the payment made by the province is not consideration for a supply. ... It is our opinion that the payment made by the province to the municipality is a grant rather than consideration for a supply. ...

Therefore, unless a tax, duty or fee is "prescribed", the amount is included in determining the value of the consideration. ... The RST that is included in the value of the consideration for the supply and installation of greenhouses is not a prescribed tax for purposes of section 154 of the ETA. The amount of the RST is included in determining the value for consideration and the GST/HST is calculated on the total amount inclusive of the RST. ...

Ruling Given Based on the facts set out above, we rule that the contract service fees and the administration fees payable by the XXXXX to the XXXXX are consideration for an exempt supply pursuant to subparagraph 189(a)(i) of the Excise Tax Act and therefore the XXXXX is not required to collect tax on these fees. ... We are of the view that the amounts paid by the XXXXX in this case represent consideration for that deemed exempt supply to the members, notwithstanding that the amount is paid by the XXXXX. That is to say, pursuant to the collective agreements, the XXXXX have undertaken to pay part of the consideration for services, deemed to be exempt, provided by the union to all its members. ...

The co-promotion agreement indicates an amount of monetary consideration is payable by XXXXX to XXXXX based upon the number of coupons redeemed by XXXXX purchasers to obtain XXXXX. 5. ... You have also specifically requested confirmation tha tXXXXX payment to XXXXX is deemed not to be consideration for a supply under paragraph 181(5)(a) and that XXXXX is allowed an input tax credit under paragraph 181(5)(c). ... Therefore, this amount paid to XXXXX under the co-promotion agreement is regarded as consideration for a taxable supply made by XXXXX. ...

Explanation What must be determined is whether the payment from XXXXX is consideration for the supply provided by XXXXX or whether it is a grant. ... Therefore, XXXXX is viewed as contracting out its responsibilities and, based on TIB-067, the payment made to your company is consideration for a supply. Section 165 of the Excise Tax Act (ETA) requires every recipient of a taxable supply made in Canada to pay to Her Majesty the GST/HST on the value of the consideration for the supply except where the supply is zero-rated. ...

The Acknowledgement Agreement also provides that in consideration of [CCo] providing financial assistance to [BCo] and for other valuable consideration, the receipt and sufficiency of which is acknowledged, [BCo] acknowledges and agrees that the Term Sheet and all terms and conditions thereof will continue in full force and effect notwithstanding the advance of the Loan by [CCo] and will govern the relationship between [CCo] and [BCo] in relation to the Loan as if the Term Sheet were a loan agreement entered into at the time of the advance of the Loan. 11. ... RULING GIVEN Based on the facts set out above, we rule that the interest and the Closing Fee are consideration for [CCo’s] supply of a financial service which is exempt under section 1 of Part VII of Schedule V to the ETA. ... The interest and the Closing Fee are consideration for this exempt supply. ...

The Acknowledgement Agreement also provides that in consideration of [CCo] providing financial assistance to [BCo] and for other valuable consideration, the receipt and sufficiency of which is acknowledged, [BCo] acknowledges and agrees that the Term Sheet and all terms and conditions thereof will continue in full force and effect notwithstanding the advance of the Loan by [CCo] and will govern the relationship between [CCo] and [BCo] in relation to the Loan as if the Term Sheet were a loan agreement entered into at the time of the advance of the Loan. 11. ... RULING GIVEN Based on the facts set out above, we rule that the Commitment Fee was consideration for [ACo]’s supply of a financial service which was exempt under section 1 of Part VII of Schedule V to the ETA. ... The Commitment Fee is consideration that was paid for this exempt supply. ...