Search - consideration

The reimbursements of the Employees’ remuneration under the Cost Sharing Arrangement by Company B and Company C will not be consideration for taxable supplies made by Company A to Company B and by Company A to Company C. ... EXPLANATION Section 165 states that every recipient of a taxable supply made in Canada shall pay GST/HST on the value of the consideration for the supply. ... Where an agent remunerates a principal’s employee, the amount of money the principal pays the agent as a reimbursement for the employee’s wages is not consideration for a supply and therefore is not subject to tax. ...

EXPLANATION For purposes of the PSB rebate, “government funding” is defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations as (a) an amount of money (including a forgivable loan but not including any other loan or a refund, rebate or remission of, or credit in respect of, taxes, duties or fees imposed under any statute) that is readily ascertainable and is paid or payable to the particular person by a grantor (i) for the purpose of financially assisting the particular person in carrying out the purposes of the particular person and not as consideration for supplies made by the particular person, or (ii) as consideration for making property or services available for consumption or use by other persons (other than the grantor, individuals who are officers, employees, shareholders or members of the grantor, or persons related to the grantor or to such individuals), where supplies of the property or services made by the particular person to such other persons are exempt supplies, […] Under the ITA, the CEWS takes the form of a deemed overpayment of liability under Part I of the ITA by an eligible entity, which is then refunded to the eligible entity. ... The Queen, 2015 TCC 278, in which the Court stated “funds received by a non-profit operator of an assisted living or residential care facility from a grantor as consideration for making such property and services available for consumption or use by the residents of the facility would still fall within the definition of “government funding” in the [Public Service Body Rebate (GST/HST) Regulations]…” Even if the CEWS were not considered a refund of taxes, the CEWS is not consideration for a supply. ... The CEWS is not considered a gift either because it is not a voluntary payment for no consideration. ...

Subsection 123(1) defines “recipient” of a supply of property or a service to mean: (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, and (c) where no consideration is payable for the supply, (i) in the case of a supply of property by way of sale, the person to whom the property is delivered or made available, (ii) in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and (iii) in the case of a supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply; By applying the definition of “recipient” to the example you provided, we determined that both individuals are the recipients of the residential complex under paragraph (a) as both of the individuals entered into an agreement of purchase and sale with the builder and both would be liable to pay the consideration for the residential complex. ...

Instead, HST applies to the supply of a right to acquire a membership if the consideration for the supply becomes due, or is paid without having become due, on or after July 1, 2010. Based on the information provided, the entrance fee charged by the Club is not consideration for a supply of a membership, lifetime or otherwise. Rather, the entrance fee is consideration for a right to acquire a membership, and therefore, the transitional rules for supplies of intangible personal property will apply. ...

Analysis Based on the information provided, it is our view that the XXXXX payment to the XXXXX by the government of Canada is not consideration for a supply since the payment is for a public purpose and not a purchase purpose. ... The Department's interpretive policy regarding the Extension of Transfer Payments (issued May 25, 1993), supports the view that payments passed from the XXXXX to the XXXXX and from the XXXXX to the end recipients are not consideration, as it states that payments which pass through intermediaries to a final recipient are not consideration where it is the original grantor's intention that the funds be used for a public purpose. ... Since the payments at each level of flow-through are not consideration in respect of a supply, these payments meet the definition of "government funding", set out in the Public Service Body Rebate (GST) Regulations. ...

In this situation, the provisions of section 154 come into play and the fee is included in the consideration payable by the dealer for the cattle. ... In this situation the provisions of section 154 come into play and the fee is included in the consideration payable for the supply of the cattle. ... In this situation the fee is not imposed on a supply nor is the fee itself consideration for a supply. ...

Question 2 We agree with XXXXX opinion that the fee charged to participants by the Chamber for purposes of acquiring business training services is consideration for a supply. ... Payments made to recipients under this program are for a public purpose and not consideration for a supply. ... Therefore, the payment the Chamber makes to XXXXX is consideration for the supply of training and the Chamber is not an intermediary for purposes of the "Extension of Transfer Payment Policy". ...

The value of the consideration for the supply made by the individual is one half of the fair market value of the first lot, the XXXXX interest of which he makes the supply. ... The value of the consideration for the supply made by the corporation is XXXXX of the fair market value of the second lot. ... Even without that provision, the consideration would have to be based on the fair market value of the supplies because the two parties are not dealing at arms' length. ...

GST equal to 7% of the consideration paid by XXXXX to the dealer is collected by the dealer from XXXXX and added to its net tax for the relevant reporting period. ... GST equal to 7% of the consideration paid by the dealer to XXXXX is collected by XXXXX and added to XXXXX net tax for the relevant reporting period. ... In other words, based on the example you provided, the difference of $4,000.00 between the agreed value of the trade-in ($11,000) and the amount of the trade-in which reduces the value of the consideration of the leased vehicle ($7,000) does not represent an amount credited against the leased vehicle. ...

Since this commission is for a service that is not referred to in paragraphs (a) through (m) of the definition of a "financial service" in subsection 123(1) of the Act, it is not a "financial service" for GST purposes and the service for which the commission is the consideration would be taxable at the rate of 7%. ... Answer Section 139 of the Act deems a mixed supply to be only a supply of a financial service where a) the consideration for the financial services component is greater than 50% of the total consideration for the mixed supply, and b) the mixed supply includes a property that is not capital property of the supplier, and c) the financial services are related to the other properties and/or services, and it is the usual practice of the supplier to provide the financial and other properties and/or services together in the ordinary course of its business. It should be noted that the total consideration for the mixed supply is calculated as the sum of the consideration for each of the financial services and non-financial services components if each component had been provided on a separate basis, and the mixed supply will be exempt. ...