Search - consideration

Interpretation Given Based on XXXXX of the Act, no tax is payable in respect of the consideration for a supply of a service of a personal representative or trustee to the extent that the consideration relates to any part of the service that was performed before 1991 and does not become due until either (a) approved by all beneficiaries of the estate (b) in accordance with the terms of the trust binding the personal representative, or (c) as approved by the Court. ... The onus is on you to prorate the consideration for the services on a reasonable basis in order to account for the tax accurately. ...

In the submitted example, the marina operator is supplying counseling services to the purchaser for consideration corresponding to XXXXX of the sale price. ... The consideration for the service corresponds to XXXXX of the purchase price in the typical case examined. The recipient of the service is the purchaser, who assumes the liability to pay the consideration. ...

You requested an interpretation as to whether GST/HST is payable under subsection 165(1) of the Excise Tax Act (ETA) in respect of damage payments made by a law firm to its client, or whether such payments are deemed to be consideration for taxable supplies under subsection 182(1) of the ETA. ... Subsection 182(1) applies only where, because of a breach, modification or termination of an agreement, the recipient pays an amount to the supplier in addition to the consideration. 2. Subsection 165(1) does not apply to the situation, because the damage payments are not consideration for a supply. ...

Interpretation Given In order for the reimbursement of the costs to have been subject to the GST, the reimbursement must have been consideration for the supply of property or a service. ... If there was no supply, the reimbursement would not have been regarded as consideration for a supply and, as a result, there would not have been any tax implications. ... If this was the case, the reimbursement would have been regarded as consideration for the supply of a service (i.e., a service of administering the share buyback program). ...

Interpretation Requested Do the payments from XXXXX to XXXXX and XXXXX constitute consideration for a supply? Interpretation Given It is the Department's view that a supply of real property is not being made and the payments made by XXXXX to XXXXX and XXXXX are not consideration for a supply of real property. ... It is the Department's view, however, that the payments made by XXXXX to XXXXX and XXXXX are not consideration for a supply. ...

Generally, a damage payment is not consideration for a supply, as it is compensatory or punitive in nature, and not given in exchange for a supply of property or services by another party. ... However, where as a result of a breach, modification or termination of an agreement for a 7% or 15% taxable supply, the recipient is required to pay or forfeit an amount to the registrant supplier, or reduce or extinguish a debt or other obligation of the supplier, section 182 of the Excise Tax Act provides that the recipient is deemed to have paid an amount as consideration and tax, in respect of the original agreement to make a supply. ... If the supply of property or service being obtained is taxable, and if the payee is a registrant, 7% or 15% tax will apply, Also, if a judgement or settlement requires a person to pay a third party to provide repairs, rather than to pay damages or consideration to the supplier, the person paying for the repairs is receiving a supply from the third party. ...

Explanation A gift may be defined at common law as a voluntary transfer of property without consideration. ... On the basis of the above, it is our opinion that donations to XXXXX are gifts at law, rather than consideration for a supply. For your further information, since XXXXX is making taxable supplies for consideration (i.e., entry fees), it would be entitled to claim input tax credits for the GST incurred on expenses related to hosting the golf tournament. ...

Ruling Given Based on the facts set out above, we rule that: The levy paid by XXXXX  is consideration for a taxable supply and is thereby subject to GST/HST. ... Since there is no provision in the Excise Tax Act to exempt such a service, it is a taxable supply and an organization that is a GST registrant is required to collect GST/HST on the consideration paid or payable for such a supply. Levies paid to an organization by producers to fund the organization's mandate to provide such a service is regarded as consideration for the service notwithstanding that the activities of the organization may relate to the producers as a group. ...

If it is established that a supply takes place in return for a transfer payment, the payment may be regarded by the Department as "consideration" for a supply. However, in general, transfer payments made in the public interest or for charitable purposes will not be regarded as consideration for a supply. Based on the information described above, the transfer payments made by the XXXXX XXXXX appear to be in the public interest and would not be regarded as consideration for a supply. ...

" You are requesting clarification on whether the amounts awarded by the XXXXX to the XXXXX represent consideration for a supply, and whether the XXXXX should include these amounts in the percentage of government funding calculation set out in the Public Service Body Rebate XXXXX (GST/HST) Regulations to determine whether it is a "qualifying non-profit organization" for the purpose of claiming a rebate under section 259 of the Excise Tax Act. It is the Department's view that generally, judicial costs awarded by the courts are not consideration for a supply. ... Consequently, as the costs awarded by the XXXXX are not consideration for a supply, then the XXXXX would not include these amounts, i.e., "intervenor fees," under "B" of the formula in paragraph 3(1)(a) of the Public Service Body Rebate (GST/HST) Regulations in determining whether the XXXXX meets the "percentage of government funding" test. ...