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....
| 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...
| 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...
| 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...
| 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...
| 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,...
| 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...
| 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...
| 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...
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...
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...
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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| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(4) | 241 | |
| Tax Topics - Excise Tax Act - Section 175.1 | 159 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Commodities, and commodities futures and derivatives | sale of Bitcoins can be on capital account | 62 |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | sale for Bitcoins | 66 |
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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|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part VI - Section 20 | 133 |
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...
| 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...
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...
| 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 | 228 |
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...
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...
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...
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...
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...
See Also
9056-2059 Québec Inc. v. The Queen, 2010 TCC 358
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...
| Locations of other summaries | Wordcount | |
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| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 | 56 |
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...
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...
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...
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...
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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|---|---|---|
| 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),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 15.2 | 158 | |
| Tax Topics - Excise Tax Act - Section 232 - Subsection 232(3) | 156 |
94 CPTJ - Q. 1
An exchange of methane for ethane will not qualify.
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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | 190 | |
| Tax Topics - Excise Tax Act - Section 175.1 | 159 |
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
Administrative Policy
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
58. When natural gas liquids are recovered from natural gas at a straddle plant, a certain amount of make-up gas is often added to the residue...