Section 153

Subsection 153(1) - Value of Consideration

Cases

Global Cash Access (Canada) Inc. v. Canada, 2013 FCA 269

In the course of finding that the appellant was receiving a financial supply from the casinos it contracted with, Sharlow JA stated (at para....

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Words and Phrases
consideration
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration "consideration" under law of contract 123
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (g) commercial efficacy of arrangement involving kiosk and support services turned on the advance of money 428
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply three elements integrally connected 240
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) predominant element not described in (r.4) or (r.5) 183

Canada v. Costco Wholesale Canada Ltd., 2012 FCA 160

The appellant ("Costco") entered into a conventional "Merchant Agreement" with the Amex Bank of Canada ("Amex") pursuant to which it agreed to pay...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) Costco agreement to use Amex cards exclusively was "arranging for" support of Amex's supply of credit 238

See Also

A Oy v. Veronsaajien oikeudenvalvontayksikkö, [2019] EUECJ C-410/17 (10 January 2019) (European Court of Justice (9th Chamber))

Pursuant to demolition contracts, a company undertook to demolish old factory buildings with responsibilities that included the disposal and...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration a demolition contract entailed a barter exchange of dismantling services and scrap 403

ING Intermediate Holdings Ltd v HMRC, [2017] EWCA Civ 2111

Although accepting (per BLP) that a mere borrowing by a company is not a supply by it, Arden LJ confirmed the finding below that the services...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply services provided in deposit-taking business were more than peripheral so that supplies were made 290
Tax Topics - General Concepts - Substance court only goes behind the contract if the contract does not reflect the true agreement 187
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (c) borrowing is not by itself a supply by borrower 69

GEM Health Care Group Limited v. The Queen, 2017 TCC 13

An individual (Mr. Hussain), who was the CEO of a Canadian corporation (“GEM”) which directly and through subsidiaries (including “Melville...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 232 - Subsection 232(3) issuance of credit note is mandatory for ITC claim 165
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Recipient no barter of managment services between affiliates/construction supplies acquired by parent as agent for owner-subs 196
Tax Topics - General Concepts - Agency construction supplies acquired by parent as agent for subsidiary owning the real estate 390

Invesco Canada Ltd. v. The Queen, 2014 TCC 375

The appellant, which was the manager (and also trustee) for various mutual fund trusts (the "Funds"), arranged that large investors in the Funds,...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration management fee distributions to large MFT unitholders 169
Tax Topics - General Concepts - Evidence evidence of surrounding circumstances including income tax objective relevant to contract interpretation 170

GF Partnership v. The Queen, 2013 TCC 53, aff'd 2013 FCA 260

The registrant ("Mattamy"), which was a housing developer, paid municipal development levies at the time it entered into a subdivision agreement...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 154 - Subsection 154(1) 136
Tax Topics - Excise Tax Act - Section 254 - Subsection 254(6) developer ought to have known that development levies not incurred by it as agent 296
Tax Topics - Excise Tax Act - Section 296 - Subsection 296(2) 159

British Columbia Transit v. The Queen, [2006] GSTC 103, 2006 TCC 437

The appellant leased a transit system to another municipal transit entity for rent of $1 per year, but with the lessee being obligated to pay...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(1.1) lease consideration not nominal because of property tax obligation 174
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(3) lessor required to demonstrate taxable-supply-for-consideration purpose 148
Tax Topics - Excise Tax Act - Section 306.1 - Subsection 306.1(1) additional reasons can be raised in Notice of Appeal 248

Customs and Excise Commissioners v. Tron Theatre Ltd., [1994] BTC 5028 (Ct. Ses. (I.H.))

A theatre company which invited members of the public to sponsor a new seat in the theatre by paying £150, and which provided such subscribers...

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Trafalgar Tours Ltd. v. Customs and Excise Commissioners, [1990] BTC 5003 (C.A.)

The taxpayer organized overseas coach tours and received 80% of the tour price listed in the brochure from its Bermudan parent. It was found that...

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Boots Co. plc v. Customs and Excise Commissioners, [1990] BTC 5064 (Ct. J.E.C.)

Boots operated a sales promotion scheme under which it distributed to its customers coupons which entitled the customer upon presenting the coupon...

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Administrative Policy

Taxable Supplies - Special Cases [CRA website]

Commercial leases

…Property taxes paid by a tenant are to be treated as part of the payment to the landlord for the rental of the real...

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23 December 2013 Internal T.I. 2013-0514701I7 - Bitcoins

When asked to address the HST/GST consequences of buying and selling goods in exchange for Bitcoins, CRA stated:

[W]here a taxable supply… is...

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31 July 2012 Interpretation Case No. 103548

A developer who applies for a development permit or subdivision approval may be required by the municipality to pay a levy, or to construct, or...

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29 July 2011 Headquarters Letter 95868

A credit card loyalty program is proposed in which participating organizations (Organizations C) assist in the marketing of credit cards of a...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service loyalty card promotion 175

15 August 2006 Ruling Case No. 56497 [bonus property with more than nominal value]

A charity which sold goods thoroughout the year in a gift shop also engaged in a special fund-raising campaign in which those who made donations...

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23 December 2002 Technical Interpretation RITS 38588

"Where a separate amount is paid by a lessee on account of property taxes, this amount is part of the consideration for the rental of the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 165 - Subsection 165(1) 66
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration municipal taxes paid by tenant are additional rent 66

27 February 2001 Interpretation 33200

A car lease agreement is assigned to another lessee of the lessor ("Leaseco") pursuant to an Assignment and Assumption Agreement. Will "the...

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2 January 1996 Ruling Case No. 11950

Ruling that where land was donated to the local County, the value of the consideration was equal to the value of the right granted by the County...

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RC4082 "GST/HST Information for Charities", p. 17 (under "Donations and Gifts")

GST/HST does not apply to donations and gifts. A donation or a gift is a voluntary transfer of money or property for which the donor does not...

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GST M 300-7 "Value of Supply" under "Monetary and Non-monetary Consideration"

Where the consideration for a supply consists of money and a trade-in, the consideration for the supply will be the total of the fair market value...

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GST M 300-7 "Value of Supply" under "Nil Consideration"

Where there is no consideration for an arm's length supply, the customer who receives the goods or services for free pays no GST.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) 32

Articles

Hynes, "VAT and Leases: Surrenders, Re-Grants and Rent-Free Periods", British Tax Review, 1993, No. 6, p. 479.

Subsection 153(2) - Combined Consideration

Cases

Ladas v. Canada, 2002 FCA 237

It was accepted that the appellant, who operated a “brew-your-own” beer and wine business, was providing separate supplies: the zero-rated...

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See Also

Aerovition Digital Inc. An Aerovition Corp. v. The Queen, 2022 CCI 6, 2022 TCC 27 (Informal Procedure)

In order to promote the sale of its honey products produced on its rural lands, the appellant developed a “labyrinth” of trails on its forest...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration s. 153(2) required a reasonable allocation of consideration between the two distinct supplies made 289

River Road Co-Op Ltd. v. The Queen, [1995] GSTC 34 (TCC)

Lamarre TCJ. concluded that s. 153(2) did not have the effect of deeming a separate service fee charged by a co-operative retail outlet to its...

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Administrative Policy

5 May 2009 Ruling 108014

A registrant has constructed and is renting condominium units in a mixed-use building, where the units in question are zoned for "live-work" use...

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CRA Audit Manual §27.6.4

S. 153(2) is anti-avoidance provision

Combined Consideration

Subsection 153(2) is an anti-avoidance rule that applies where there has been an...

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GST/HST Memorandum 13-4, Rebates for Printed Books, Audio Recordings of Printed Books, and Printed Versions of Religious Scriptures July 2002

Application of s. 153(2) where one supply is not incidental to the other

Combined supplies

70. In some cases, an item that consists of a book and...

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CBAO National Commodity Tax, Customs and Trade Section – 2000 GST Questions for Revenue Canada, Q.6

Do a vendor and purchaser have to allocate between land and land goodwill and pay GST in respect of the land goodwill to the vendor? CCRA...

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GST Memorandum 300-7 "Value of Supply" under "Non-Arm's Length Supplies"

Applies where single consideration shown/relative FMV may be used

Combined Consideration

12. Pursuant to subsection 153(2), where consideration is...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 155 184

Subsection 153(3) - Barters Between Registrants

Administrative Policy

5 February 2013 Ruling Case No. 141852

Company A (a Canadian-resident registrant) sells crude oil for its market value to Company B (its U.S.-resident affiliate and also a registrant),...

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Subsection 153(4) - Used Tangible Personal Property Trade-Ins

Cases

Dimension J.M.M. Inc. v. Canada, 2005 FCA 168

A partnership of which the appellant was a member permitted customers to return a video game purchased from the business and receive a credit...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 299 - Subsection 299(2) assessment of partnership before assessment of partner not required 179
Tax Topics - Excise Tax Act - Section 272 - Subsection 272.1(5) direct assessment of partner was valid 216

Administrative Policy

Taxable Supplies - Special Cases [CRA website]

Trade-ins

If you accept used goods in trade for full or partial payment for goods you sell or lease in the course of your business, special rules...

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TIB-084, 29 July 1997 "Treatment of Used Goods".

Articles

Steven K. D'Arcy, "Commercial Practices and the GST", Canadian GST Monitor, No. 107, 26 August 1997, p. 1: Discussion of trade-in allowance issues including treatment of liens.

Subsection 153(6) - Exchange of Natural Gas Liquids for Make-Up Gas