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The following is a common scenario: A Canadian resident corporation (CanCo) provides products or services to a non-arm's length non-resident corporation (ForCo); CanCo is considered the tested party [3] and the transfer price for this transaction is tested using a cost-based method; [4] CanCo receives financial assistance from one or more government agencies or programs; In calculating the cost base for transfer pricing purposes, CanCo reduces the cost base by an amount equal to the government assistance received. ... The following are some of the items that may be considered: identification of all characteristics that are relevant to the market or industry; the accounting treatment of the government assistance in both the tested party and any comparable identified, for example, whether the government assistance is deducted from the costs or it is presented separately, [5] since not considering differences such as the accounting treatment can affect profit level indicators; whether and to what extent the government assistance is passed on to arm's length customers or suppliers in that particular market or industry; when the government assistance is not fully passed on to arm's length customers or suppliers, the manner in which arm's length enterprises operating under similar circumstances would allocate such benefits between them through further enquiry; any other relevant information. ... For example, when the government assistance can be considered as highly integrated to the operations and significantly affects the economically relevant market conditions, a transactional profit split method may be the most appropriate transfer pricing method. ...

Penalty referrals The application of penalties under subsection 247(3) must be considered in all cases where the total of transfer pricing capital and income adjustments for a taxation year: exceed 10% of gross revenue for the year as calculated under subparagraph 247(3)(b)(i); or exceed $5,000,000. ... At that time, the auditor will advise the taxpayer that the application of paragraphs 247(2)(b) and (d) are being considered with respect to the transactions under review. ... The taxpayer’s representations and the additional information will be considered when completing the formal referral report. ...

“Related persons” are not considered to deal with each other at arm’s length. ... Deemed disposition This expression is used when a person is considered to have disposed of a property, even though a sale did not take place. Deemed proceeds of disposition This is an expression used when a person is considered to have received an amount for the disposition of property, even though the person did not actually receive that amount. ...

Pursuant to subsection 104(24), an amount is not considered to be payable in a taxation year unless it is paid in the year to the person to whom it is payable or the person to whom it is payable is entitled in the year to enforce payment thereof. ... It should be noted that foreign accrual property income of a non-resident trust is included in the income of a beneficiary pursuant to paragraph 104(13)(c) to the extent that the amount may reasonably be considered to have become payable to a beneficiary within the meaning of subsection 104(24). ... The amounts required to be included in computing the income of a beneficiary for a taxation year under subsections 104(13) and 105(2) are considered to have been earned by the beneficiary on the last day of the taxation year of the trust and are thus in respect of the taxation year or years of the trust which ended in the taxation year of the beneficiary. ...

Once such an amount on account of the sale price exceeds the adjusted cost base of the shares (as reduced by any previous such amounts), the excess is considered to be a capital gain that is realized at the time that that amount became determinable, and the adjusted cost base becomes nil. ... Where the sale agreement stipulates a minimum amount payable by the purchaser in any event, that amount is considered to become determinable by the vendor at the time of the sale. ¶ 6. ... For the purposes of this bulletin, an agreement that merely determines when amounts are to be paid, as opposed to determining the quantum of proceeds, is not considered to be an earnout agreement. ¶ 9. ...

Policies to be reported A contract is considered to be entered into or renewed on the effective date of the contract unless the contract provides that the premiums are payable on a date other than the effective date. In this case, for purposes of filing your return, the contract is considered to be entered into or renewed on the premium payable date. ... Where contracts of insurance are validly placed with unlicensed insurers under the above conditions, the insurer can be considered authorized to transact the business of insurance in the context of Part I of the Excise Tax Act. ...

Where all of the above conditions are met, subsection 183(3) applies and the supply of the property would be considered to be a supply made otherwise than in the course of a commercial activity. ... A judicial sale will also be considered to fall within subsection 183(10) on the basis that these are "rights" available to creditors under statute law. ... All the conditions of subsection 183(3) have been met and, therefore, the supply is considered to have been made otherwise than in the course of a commercial activity. ...

However, under proposed changes, a transfer of property for which the donor received an advantage will still be considered a gift for purposes of the Income Tax Act as long as we are satisfied that the transfer of property was made with the intention to make a gift. ... For example, green fees that would ordinarily be charged to a non-member playing the course at the time of the event would be considered a benefit and therefore an advantage to be included in determining the eligible amount. ... Under the right circumstances the transferred property could be considered a gift and therefore eligible for a receipt. ...

., the "owner") is considered to have sold the goods to the purchaser. ... Services provided by auctioneers An auctioneer who has made a sale of goods by auction is considered (except in limited circumstances) not to have provided the owner with services related to the sale of the goods. ... Generally, a service is considered to be related to the sale of goods if both of the following requirements are met: The service provided to an owner relates directly to the sale of the goods by auction and not simply to the goods themselves. ...

General Rules – the owner must charge and account for the GST/HST According to the general principles of agency relationships, the sale of goods through a consignee as agent is considered to be a sale by the owner. ... In this case, the sale of the goods (other than zero-rated or exempt goods) is considered to be a sale of taxable goods by the consignee. ... Also, the consignee is considered (except in limited circumstances) not to have provided the owner with services related to the sale of the goods. ...