Search - consideration

2 August 2017 Ruling 182285-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration Ontario electricity rebate does not reduce the consideration for the supply The Ontario Rebate for Electricity Consumers Act, 2016 provided a rebate equal to the provincial portion of HST on the electricity bills of residential, farm, small business and other eligible customers. CRA ruled that the rebate is financial assistance and does not reduce the consideration for the supply of the electricity – so that input tax credits or public service body rebate claims of the recipient are not reduced by the rebate amount. ...

("Time Tax Becomes Payable When Consideration Is Comprised Of A Forgivable Loan")-- summary under Subsection 152(1) Summary Under Tax Topics- Excise Tax Act- Section 152- Subsection 152(1) Respecting the situation where the consideration that is payable for a taxable management service is comprised of a forgivable loan which has a 5 year term (20% of principal amount being forgiven each year), CRA stated: Consistent with subsection 152(1) of the ETA, this consideration would be considered to become due according to the relevant written agreement between the management service provider and the client and when any invoices are issued. In the absence of any particular conditions on the loan advance or forgiveness of amounts under the loan and assuming that the entire amount of the loan advance is required to be advanced at the outset under the agreement, the consideration would generally be considered to be paid and to become due, and the tax would therefore generally be payable, at the time the loan advance is made, not at the time the loan is forgiven. ...

18 September 2015 Ruling 168521r-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration HST applicable to on-charges for waste diversion fees imposed on Ontario tire seller As also described in 144133, Ontario Tire Stewardship (“OTS”) was designated by Waste Diversion Ontario (“WDO”) as an industry funding organization (“IFO”) for used tires and, as such, was responsible for operating the waste diversion and recycling program in Ontario for used tires including collection, transporting and processing. ... For ETA purposes, this cost, even when separately identified as an “OTS” charge on an invoice to a tire customer, forms part of the consideration for a taxable supply of tires and is subject to GST/HST…. ... [ACo]’s tire customer) and it is not excluded from the consideration for the tire charged to the tire customer by virtue of section 154…. ...

19 January 2017 Ruling 172004-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration contributions, resulting from collective agreement, to workplace development fund were not conisderation for supply An employers’ organization for collective bargaining on behalf of employers (i.e., construction contractors) in the construction industry agreed during the negotiation of the collective agreements between the organization and the unions, that for each hour worked by employees pursuant to the collective agreements, the employers would contribute amounts to support workforce development initiatives. ... The payment of amounts as an industry development fee set by [the Organization] are therefore not consideration for a supply and therefore not subject to GST/HST. ...

GST/HST Memorandum 14-5, Election to Deem Supplies to be Made for Nil Consideration, June 2023-- summary under Qualifying Group Summary Under Tax Topics- Excise Tax Act- Section 156- Subsection 156(1)- Qualifying Group Example 1 Where OpCo (a registrant substantially all of whose preoperty was acquired for use or supply exclusively in commercial activities) establishes NewCo, which performs activities in connection with the establishment of the commercial activity which it plans to carry out "and therefore becomes a registrant. ... In this regard, subsection 141.01(7) ensures that any provision deeming a supply to be made for no consideration does not apply for the purposes of determining the extent to which inputs used in making the supply are acquired, imported, used or consumed by the person for the purpose of making taxable supplies for consideration in the course of an endeavour of the person. ...

22 May 2014 Ruling 156633-- summary under Consideration Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Consideration additional rent for municipal taxes applied to ground rent is taxable until constructed apartment commences its exempt use The Lessee of the “Property” constructed a multi-storey, multi-unit residential apartment building (the “Complex”) on the rooftop of an existing building. ... Therefore, the Additional Rent relating to Realty Taxes is additional consideration for the supply of real property made under the Agreement. ...

GST M 300-7 "Value of Supply" under "Nil Consideration"-- summary under Subsection 153(1) Summary Under Tax Topics- Excise Tax Act- Section 153- Subsection 153(1) Where there is no consideration for an arm's length supply, the customer who receives the goods or services for free pays no GST. ...

GST M 300-7 "Value of Supply" under "Nil Consideration"-- summary under Subsection 169(1) Summary Under Tax Topics- Excise Tax Act- Section 169- Subsection 169(1) The deeming by s. 153(3) of a supply to be made for nil consideration does not alter the status of the supply as a taxable supply for other purposes, e.g., ITC purposes. ...

Income Tax Regulation News, Release No. 3, 30 January, 1995 under "Interest-Bearing Note issued in Consideration for the Redemption or Repurchase of Shares"-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) Interest payable on a promissory note issued as consideration for the redemption or purchase for cancellation of a corporation's capital stock is not deductible under s. 20(1)(c) (nor would a deduction be available under draft s. 20.2(1)). ...

IT-239R2 "Deductibility of Capital Losses from Guaranteeing Loans for Inadequate Consideration and from Loaning Funds at less than a Reasonable Rate of Interest in Non-arm's Length Circumstances"-- summary under Subparagraph 40(2)(g)(ii) Summary Under Tax Topics- Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(g)- Subparagraph 40(2)(g)(ii) 6. Where a taxpayer has loaned money at less than a reasonable rate of interest to a Canadian corporation of which he is a shareholder, or to its Canadian subsidiary, or has guaranteed the debts of such a corporation for inadequate consideration, any subsequent loss arising to him from the inability of the corporation to discharge its obligations to him, or from having to honour the guarantee, may be a deductible capital loss to him despite the absence of a reasonable rate of interest or adequate consideration. ...