Search - consideration

EXPLANATION Generally, every recipient of a taxable supply (other than a zero-rated supply) made in Canada is required to pay GST/HST on the value of the consideration for the supply pursuant to subsections 165(1) and 165(2). ... As a result, in our view, the additional funding paid by the Region to the Authority under the Agreement is not consideration for a supply of technical input and advice or the processing of Regional permit applications. Rather, it is consideration for a supply of a service of ensuring there is a dedicated staff team to exclusively address the needs of the Region within agreed upon service delivery standards. ...

Ruling Given Based on the facts set out above, we rule that: The fees payable by members of the public to the City for an admission to its XXXXX session at the XXXXX Recreation Centre and the XXXXX Recreation Centre, and an admission to its XXXXX session at the XXXXX Recreation Centre, the XXXXX Recreation Centre or the XXXXX Arena are consideration for a taxable supply as no exempting provision within the ETA applies. ... Explanation Section 9 of Part VI of Schedule V to the ETA exempts the following: "A supply made by a public sector body of an admission in respect of a place of amusement where the maximum consideration for a supply by the body of such an admission does not exceed one dollar. ... The consideration charged for supplies of an admission to these recreational facilities to skate or swim varies depending upon the session offered, the time it is offered and to whom it is offered. ...

B) The Act of Transfer: Under the Act of Transfer, Her Majesty transfers the Immovable to XXXXX in the consideration of the sum of one dollar ($1.00), subject to certain conditions, in particular the obligation of I XXXXX to continuously operate the XXXXX for the purposes of ship construction and repair. ... The parties declare that the value of the consideration for the purposes of the Excise Tax Act is one dollar ($1.00) and for the purposes of the Act respecting the XXXXX sales tax is one dollar ($1.00). ... Based on the facts set out above, we rule that payments made by Her Majesty to XXXXX with respect to the operation of the XXXXX for the purposes of ship construction and repair during the operating period are not consideration for a supply and are not subject to GST. ...

These "allowable benefits" are: •   the right to receive an indirect benefit intended to accrue to all members collectively; •   the right to receive investigation, conciliation, or complaint-settlement services supplied by the body for issues involving members; •   the right to vote at or participate in meetings; •   the right to receive or acquire property or services for consideration equal to the fair market value of the property or services at the time the supply is made; •   the right to receive a discount on the fee paid for a supply provided by the organization where the total value of all such discounts to which a member is entitled is insignificant in relation to the membership fee; and •   the right to receive periodic newsletters, reports or publications for which the value is insignificant in relation to the consideration paid for the membership, or that provide information on the activities of the body or its financial status, other than newsletters, reports or publications the value of which is significant in relation to the consideration for the membership and for which a fee is ordinarily charged by the body to non-members. ...

.: Section 1 of Part V.[1] of Schedule V EXEMPT SUPPLIES BY CHARITIES A supply made by a charity of any property or service, but not including a supply of (a) property or a service included in Schedule VI; (b) property or a service where the supply is deemed under Part IX (other than section 187) of the Act to have been made by the charity; (c) personal property (other than property that was acquired, manufactured or produced by the charity for the purpose of making a supply by way of sale of the property) where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used (otherwise than in making the supply) in commercial activities of the charity or, in the case of capital property, primarily in such activities; (d) tangible personal property that was acquired, manufactured or produced by the charity for the purpose of making a supply of the property and was neither donated to the charity nor used by another person before its acquisition by the charity, or any service supplied by the charity in respect of such property, other than such property or such a service supplied by the charity under a contract for catering; (e) an admission in respect of a place of amusement unless the maximum consideration for a supply by the charity of such an admission does not exceed one dollar; (f) a service involving, or a membership or other right entitling a person to, supervision or instruction in any recreational or athletic activity except where (i) it could reasonably be expected, given the nature of the activity or the degree of relevant skill or ability required for participation in it, that such services, memberships or rights supplied by the charity would be provided primarily to children 14 years of age or under and the services are not supplied as part of, the membership is not in, or the right is not in respect of, a program involving overnight supervision throughout a substantial portion of the program, or (ii) such services, memberships or rights supplied by the charity are intended to be provided primarily to individuals who are underprivileged or who have a disability; (g) a membership (other than a membership described in subparagraph (f)(i) or (ii)) where the membership (i) entitles the member (A) to an admission in respect of a place of amusement the supply of which, were it made separately from the supply of the membership, would be a taxable supply, or (B) to a discount on the value of consideration for a supply of such an admission, or (ii) includes a right to participate in a recreational or athletic activity, or use facilities, at a place of amusement, except where the value of the admission, discount or right is insignificant in relation to the consideration for the membership; (h) services of performing artists in a performance where the supply is made to a person who makes taxable supplies of admissions in respect of the performance; (i) a right, other than an admission, to play or participate in a game of chance where the charity is a prescribed person or the game is a prescribed game of chance; (j) a residential complex, or an interest therein, where the supply is made by way of sale; (k) real property where the supply is made by way of sale to an individual or a personal trust, other than a supply of real property on which is situated a structure that was used by the charity as an office or in the course of commercial activities or of making exempt supplies; (l) real property where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used (otherwise than in making the supply) primarily in commercial activities of the charity; or (m) real property in respect of which an election under section 211 of the Act is in effect at the time tax would become payable in respect of the supply if it were a taxable supply. c.c.: M. ...

If an overpayment is made, ABC Inc. is to repay the amount on demand or the amount of the overpayment is to be offset against subsequent payments made under the capital agreement. 5. 2000 Subsidiary Operating Agreement In consideration for the XXXXX service provided by ABC Inc., the Minister of XXXXX is to pay the monthly payments for the period January to December, 2000. ... "Government funding" as defined in the Regulations includes an amount of money paid or payable to a non-profit organization by a government for the purpose of: (i) financially assisting the organization in carrying out its objectives and not as consideration for supplies made by the organization, or (ii) payment for exempt supplies of property or services provided to persons other than the grantor or a person related to the grantor. ... Amounts received pursuant to the 2000 Subsidiary Operating Agreement may fall within (i) above or, alternatively, may be regarded as consideration for exempt XXXXX services provided to persons other than the federal government; as such they would fall within (ii) above. ...

Explanation Pursuant to subsection 123(1) of the ETA, a " recipient of a supply of property or a service means... where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration...." ... That is, the Company is liable under the agreement between it and the consultant to pay consideration in respect of consultations performed and supplements provided by the consultant to the Company during a particular calendar month. ...

The Company negotiates each Merchant Agreement with the relevant merchant and then presents it to the Acquirer for consideration. ... For each transaction in respect of which an Acquirer provides its Acquirer Service to a merchant under a Merchant Agreement negotiated by the Company on behalf of the Acquirer, the Acquirer is liable to pay the Company a fee (the “Transaction-Based Fee”) as the sole form of consideration for the Company’s services to the Acquirer under their Client Agreement. ... In the present case, the Company receives a single consideration (in the form of the Transaction-Based Fee) for all of the elements that it provides to the Acquirer under a Client Agreement. ...

For instance, a sandwich and a carbonated beverage may be sold together as a combo meal for a single consideration. ... However, when the items are sold together for a single consideration, the supply of the entire combo meal is exempt. ... The supply of the sandwich is exempt and the supply of the can of pop is taxable at 13%, because the items are not sold for a single consideration. ...

Consideration There is a further issue of whether or not there is consideration for the joint venture interest. ... We are unable to determine at this point whether or not consideration other than assumption of joint venture obligations will be paid for the joint venture interest. A ruling on section 167, however does not require that the amount of consideration be established. ...