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23 August 2002 GST/HST Ruling 37556- Re: [The Amounts Charged by For its Supplies of Medical Reports] Unedited CRA Tags ETA Sch V, Part II Excise and GST/HST Rulings Directorate Place de Ville, Tower A, 15th floor} 320 Queen Street Ottawa ON K1A 0L5XXXXX XXXXX XXXXX XXXXX XXXXXAttention: XXXXX Case Number: 37556August 23, 2002 Subject: GST/HST APPLICATION RULING Re: XXXXX Dear Sir: Thank you for your letter of XXXXX, requesting that we reconsider the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) application ruling of XXXXX, that the amounts charged by XXXXX for its supplies of medical reports are consideration for taxable supplies. ... Based on the information that was provided, this letter confirms our ruling that, for purposes of the Excise Tax Act, the amounts charged by XXXXX to individuals and their primary insurers are consideration paid to XXXXX for a taxable supply. ... XXXXX is required to collect the GST/HST on the consideration for this taxable supply. ...

The transitional rules are generally based on the earlier of when consideration for a supply becomes due and when consideration is paid without having become due. Consideration for a supply becomes due on the earliest of: • the date of an invoice for that consideration for the supply; • the day the supplier first issues that invoice for the consideration; • if there is an undue delay in issuing that invoice, the day the supplier would have issued the invoice; and • the day the customer is required to pay that consideration under a written agreement. Consideration is paid without having become due when a recipient pays the consideration for a supply: • before the date of the invoice, or before a supplier issues, or would have issued, the invoice; or • before the customer is required to pay the consideration under a written agreement and no invoice has been issued. ...

Later, Corp A reduced the consideration on the sale and refunded to Corp B the portion of the tax that was calculated on the amount by which the consideration was reduced. ... INTERPRETATION: Under subsection 232(2), where a particular person has charged to, or collected from, another person tax under Division II calculated on the consideration or a part thereof for a supply and, for any reason, the consideration or part is subsequently reduced, the particular person may, in or within four years after the end of the reporting period of the particular person in which the consideration was so reduced, (a) where tax calculated on the consideration or part was charged but not collected, adjust the amount of tax charged by subtracting the portion of the tax that was calculated on the amount by which the consideration or part was so reduced; and (b) where the tax calculated on the consideration or part was collected, refund or credit to that other person the portion of the tax that was calculated on the amount by which the consideration or part was so reduced. ... Scenario 1 In Scenario 1, the refund of consideration and tax would come within subsection 232(2), and therefore subsection 232(3) applies. ...

Lease: Lease of equipment from XXXXX as lessor to a lessee (XXXXX), in consideration for periodic lease payments to XXXXX. 2. Assignment: Assignment of Lease from XXXXX to XXXXX, in consideration for a lump sum payment equal to the present value of the future payment stream, as per notice of assignment, acknowledgement of assignment XXXXX. 3. ... OUR COMMENTS • Our comments are based on the documents provided, as set out above. • The payment of an advance by XXXXX to XXXXX is consideration for the assignment to XXXXX. ...

Required provincial legislation has been introduced but is still under consideration by the Legislative Assembly of British Columbia. ... Under the transitional rules, the HST would generally apply to any consideration that becomes due, or is paid without having become due, on or after May 1, 2010, for a supply of a service to the extent that the consideration relates to the portion of the service performed on or after July 1, 2010. However, if 90% or more of the service is performed before July 2010, HST would not apply to the consideration for the service. ...

The consideration for the taxable supplies of the memberships will therefore become due after October 14, 2009 and before May 2010. Subsection 165(2) requires every recipient of a taxable supply made in a participating province to pay the provincial part of the HST on the value of the consideration for the supply. ... If an amount of consideration for the taxable supply of the membership becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is for a part of the period of membership that was not before July 1, 2010, for the purposes of applying 165(2) of the ETA to the supply (i.e., the provincial part of the HST), that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day. ...

This amendment applies to supplies for which consideration becomes due after March 9, 2004, or for which consideration is paid after March 9, 2004, without having become due. ... Pursuant to section 125 of the Constitution Act, 1867, GST is not collectible from XXXXX on the consideration for taxable supplies provided to it by the City. ... Based on the facts provided, XXXXX has also provided funding to the City that is not consideration for taxable or exempt supplies made by the City to XXXXX. ...