Search - consideration

INTERPRETATION REQUESTED You have requested a GST/HST interpretation on whether the […] fees earned by the Taxpayer are consideration for supplies of exempt financial services. In particular, you would like to know whether the fees earned by the Taxpayer: * from the merchant in respect of an arrangement governed by Agreement 1 are consideration for supplies of exempt financial services on the basis that the Taxpayer is a “person at risk” under the Financial Services and Financial Institutions (GST/HST) Regulations (the Regulations); and * from the acquirer in respect of an arrangement governed by Agreement 2 are consideration for supplies of exempt financial services on the basis that the Taxpayer is an agent of a “person at risk” under the Regulations. ...

You indicated that XXXXX charges GST/HST on the consideration for these services, other than the sale of insurance. Ruling Requested Are the amounts paid to you, as a partner of XXXXX, under Section XXXXX of the Agreement by XXXXX, consideration for a financial service? Ruling Given Based on the facts set out above, we rule that the amounts paid to you, as a partner of XXXXX, by XXXXX under Section XXXXX of the Agreement, are consideration for a financial service. ...

According to the Agreement, the consideration for the supply is based solely on the qualifications of the various personnel provided by XXXXX. ... The consideration is calculated by multiplying the number of hours a particular type of personnel has worked by the hourly rate applicable to that type of personnel. This method of calculating the consideration for the supply (i.e., an hourly rate based on the qualifications of the personnel) does not suggest a 'fee for nursing services', but rather it is indicative of a supply of personnel or human resources. ...

Based on section [...] of the Agreement, in consideration for the services performed by [the Company], the Funder agrees to pay [the Company] a finders fee equal to [...] percent [...] arising from Clients referred to the Funder by [the Company] under this Agreement. 6. ... Specifically, the amendments would not apply where, under a written agreement: • all of the consideration for the supply became due or was paid on or before December 14, 2009; • the supplier did not, on or before December 14, 2009, charge, collect or remit any amount as or on account of tax in respect of the supply; and • the supplier did not, on or before December 14, 2009, charge, collect, or remit any amount as or on account of tax in respect of any other supply that is made under the agreement and that includes the provision of a service referred to in paragraphs (q), (q.1) and (r.3) to (r.5) of the definition of financial service. ... Please note that where [the Company] provides a supply to a funder that is the same as in the Agreement and consideration for the supply became due or was paid after December 14, 2009, the supply will also be subject to GST/HST. ...

Under section [...] of the Agreement, in consideration for the services to be rendered by [Corporation A] under the Agreement, including those related to the origination of Accounts, the Bank will pay [Corporation A] as set forth in Schedule [...], such amounts to be inclusive of all applicable taxes. 18. ... If it is determined that [Corporation A] is providing multiple supplies you would like to know whether [...] paid to [Corporation A] are consideration for supplies of financial services. ... Please note that paragraphs (r.3) and (r.4) are deemed to have come into force on December 17, 1990, except where it is in respect of a service rendered under an agreement, evidenced in writing, for a supply if all of the consideration for the supply became due or was paid on or before December 14, 2009, and the supplier did not, on or before that day, charge, collect or remit any amount as or on account of GST/HST in respect of the supply or any other supply that is made under the agreement that includes a credit management service or a preparatory service. ...

The [...] franchise fee is in consideration of the grant by the Franchisor to the Franchisee of the opportunity to establish the franchise. 6. ... Ruling Given With respect to your question 1 and based on the facts set out above, we rule that any and all fees payable by the Franchisee to the Franchisor under the Franchise Agreement are consideration for taxable supplies and therefore GST/HST is applicable on these amounts paid (i.e. $[...] franchise fee, [...]% of [...] revenues, other amounts) by the franchisee to the Franchisor under the Franchise Agreement. ... The $[...] franchise fee, [...]% of [...] revenues and other commission amounts paid to the Franchisor by the Franchisee are consideration for the supply of this right and licence. ...

The payment is consideration for the services provided by the Bank in paragraph [...] of the Agreement. ... The [...] is consideration for various administrative, marketing and promotional services provided by the Bank, as set out in section [...] of Schedule [...] of the Agreement. 12. ... This paragraph is deemed to have come into force on December 17, 1990, except where it is in respect of a service rendered under an agreement, evidenced in writing, for a supply if all of the consideration for the supply became due or was paid on or before December 14, 2009, and the supplier did not, on or before that day, charge, collect or remit any amount as or on account of GST/HST in respect of the supply or any other supply that is made under the agreement that includes a preparatory service. ...

The Mortgage Broker fee received from the mortgage lender is consideration for an exempt supply of a financial service under paragraph (l) of subsection 123(1) of the definition of financial service. 2. The mortgage fee paid by a borrower to a Mortgage Broker is consideration for an exempt supply of a financial service under paragraph (l) of subsection 123(1) of the definition of financial service. ... ADDITIONAL INFORMATION Although you did not request information on future compensation programs (e.g. trailer fees), please note that a renewal commission payable in future years may not be consideration for the arranging for the supply of a mortgage loan. ...

RULING GIVEN After careful consideration of your submission and the facts set out above, we rule that the supplies of acne scar treatments rendered by the Doctor to [individual X] are not exempt supplies. ... ETA Provisions Section 9 of Part II of Schedule V, in part, exempts a supply of any service but only if, and to the extent that, the consideration for the supply is payable or reimbursed by the government of a province under a plan established under an Act of the legislature of the province to provide for health care services for all insured persons of the province. ... The professional opinion of the Doctor was that the services rendered to [individual X] were done for cosmetic purposes rather than for medical or reconstructive purposes. […] As stated above, when determining if a procedure is done for cosmetic purposes the guidelines of the province would also be taken into consideration. ...

What did the supplier provide for the consideration received? You state that the new media content and the printed book are distinct and are sometimes supplied independently (either for free or for consideration). ... You indicate that in some cases where the printed book has related new media content, the new media content is supplied separately for no consideration, i.e., the content is freely available on websites accessed over the Internet. ...