Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
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Case Number: 104232
May 5, 2008
Subject:
GST/HST INTERPRETATION
PROPOSED LAW/REGULATION
Form GST 116, Application, Renewal, or Revocation of the Authorization for a Qualifying Institution to Use Particular Methods.
Dear XXXXX:
Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to financial institutions.
All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.
We understand that you would like confirmation of specific filing deadlines for the application form GST 116.
Interpretation Requested
1. Would a qualifying institution with a fiscal year that ends on October 31, be required to file application form GST 116 no later than May 5, 2008?
2. Would a qualifying institution with a fiscal year that ends on December 31, be required to file application form GST 116 no later than July 7, 2008?
Interpretation Given
The proposed changes to GST/HST legislation announced on January 26, 2007, provide more detailed input tax credit allocation rules for financial institutions.
According to proposed subsection 141.02(18), a person that is a qualifying institution (as defined in proposed subsection 141.02(1)) for a fiscal year, may apply to the Minister to use particular methods to determine the operative and procurative extent (as defined in proposed subsection 141.02(1)) of each property or service of the qualifying institution for the fiscal year. The application may be made for any fiscal year beginning after March 2008.
Proposed subsection 141.02(19) states:
"Form and manner of application - An application made by a person under subsection (18) shall
(a) be made in prescribed form containing prescribed information;
(b) specify which method is to be used in respect of each property or service of the person; and
(c) be filed by the person with the Minister in prescribed manner on or before the day that is
(i) the day that is 180 days before the first day of the fiscal year to which the application applies, or
(ii) any later day that the Minister may allow on application by the person."
Generally, where the 180th day before the first day of a fiscal year of a qualifying institution falls on a Saturday, Sunday, or a public holiday, the Canada Revenue Agency (CRA) would consider the application form GST116 to be filed on time, if it is filed on the next business day.
Therefore, an application made by a qualifying institution to use particular methods under proposed subsection 141.02(18) should be made on the form GST116 and according to proposed subparagraph 141.02(19)(c)(i):
(i) where the qualifying institution has a fiscal year that ends on October 31, must be filed no later than May 5, 2008, for its fiscal year beginning November 1, 2008; and
(ii) where a qualifying institution has a fiscal year that ends on December 31, must be filed no later than July 7, 2008, for its fiscal year beginning January 1, 2009. As the 180th day is Saturday July 5, 2008, we would consider the application form to be filed on time if it is filed on the next business day, which is Monday July 7, 2008.
The foregoing comments represent our general views with respect to the proposed amendments to the ETA as they relate to the subject matter of your request. Any change to the wording of these proposed amendments or any future proposed amendments to the ETA, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the CRA with respect to a particular situation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9210.
Yours truly,
Dawn Weisberg
Manager
Financial Institutions Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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