Search - consideration

The preamble of subsection 232(2) contains the criteria that must be met in order to apply the provision and reads as follows: 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… Paragraph 6 of GST/HST Memorandum 12.2, Refund, Adjustment, or Credit of the GST/HST under Section 232 of the Excise Tax Act states that a reduction in consideration may occur under various circumstances, including “where goods are returned to the supplier for a full or partial refund of the consideration.” ... To be considered a reduction of consideration, it must be evident that the goods are being returned to the supplier rather than being sold to the supplier.” ... In our view, it would be difficult to view the transaction as a “reduction in consideration” contemplated by subsection 232(2), since the amount of the consideration would effectively be reduced by an amount that is greater than that consideration. ...

A copy of the purchase agreement between [Company A] and […][Company B] for the supply of an ownership interest in [product 1] was submitted for our consideration. ... A copy of the lease agreement between [Company A] and a lessee ([…]) was submitted for our consideration. ... This is not an agreement for the supply of […] services, notwithstanding that [Company A] bases a part of the consideration for the supply on […]. ...

Are the contributions made by XXXXX and its employees to the XXXXX established by XXXXX consideration for a supply? ... Contributions made by the XXXXX under The XXXXX established by XXXXX are not consideration for a supply. ... Contributions made by XXXXX and its employees to the XXXXX established by XXXXX are consideration for a supply. ...

In the context of the GST, "consideration" generally means the amount paid or payable to a supplier by the recipient of the supply. In all cases, in order to be consideration, the amount must be payable for a supply. ... Consequently, the amount paid by the lease operator to XXXXX as termination penalty fees is not consideration for a supply. ...

Rationale: Subsection 123(1) of the ETA states, in part, that a "recipient" of a supply of property or a service means: (a) 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, (b) where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration. ... Therefore, the determination must be made as to whether the amount charged by the registrant represents consideration only or consideration and tax. ... The administrative fee is subject to tax as it is consideration for a supply of a service made in Canada from CANCO to the O/O. ...

" (item # 2) and "... partial consideration..." (item # 3). ... Apportionment of Tax Subsection 153(2) applies where consideration is paid for a supply and other consideration is paid for one or more other supplies, and the consideration for one of the supplies exceeds the amount that would be reasonable if the other supply were not made. ... In the subject case, we have no evidence that there has been an unreasonable apportionment of the consideration between the supplies. ...

A further indication that the research, teaching, and administrative services are separate and distinct supplies is the manner in which the independent contractors receive consideration from XXXXX for these supplies. ... The consideration payable by the hospital in exchange for these supplies consists of the use of physical space, clerical and administrative staff, medical residents, and equipment. Where the consideration for a supply is other than money, subsection 153(1) of the ETA deems the value of that consideration to be equal to the fair market value of the consideration at the time the supply was made. ...