File 11910-5 (DD)
Ref. ss. 123(1)
Document 479
XXXXX February 23, 1995
Dear sir:
This refers to your E-mail message of October 1, 1993, to Mr. Don Dawson, concerning the definition of "public college" in section 123 of the Excise Tax Act (ETA). We regret the delay in replying.
Facts
Subsection 123(1) of the Act defines "public college" as:
"an organization or that part of an organization that operates a post-secondary college or post-secondary technical institute
(a) that is funded by a government or a municipality, and
(b) the primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical or general education".
Questions Asked
1. If an organization (with no divisions) provides primarily secondary school courses but meets the requirements in both (a) and (b), can it still be considered to be a public college? What if the organization primarily provides post secondary school courses? Is it an all or nothing scenario?
2. Does the first part of the definition have to be looked at before (a) and (b) are addressed?
3. What kinds of courses would be included in general education (e. g. language courses, resume preparation)?
Answer Given
1. In order for a person to be considered a public college as defined by subsection 123(1) of the ETA, it must meet all the requirements of the subsection, including the requirement that it operate a post-secondary college or a post-secondary technical institute. The college or technical institute may offer some secondary level courses, provided it is a post-secondary facility.
In order to be a public college, the person must be an organization, rather than a sole proprietorship. The organization must be operating a post-secondary college or a post-secondary technical institute. The college or technical institute must be funded by a government or a municipality in respect of its curriculum, and its primary purpose must be to provide programs of instruction in one or more fields of vocational, technical or general education.
In order to be considered a college, a facility must offer training or instruction in one or more occupations or professions and give degrees or diplomas. In order to be considered a technical institute, a facility must be a college that primarily offers courses in technical subjects.
In order to be considered post-secondary, a college or technical institute must have as part of its normal admission standards the requirement that the applicant have obtained at least a secondary school diploma. This would mean that an organization that offers primarily secondary level courses could not be a public college, since its normal admission requirement would obviously not involve a secondary school diploma. However, even if the majority of the courses offered by the facility were not identifable as secondary level courses, it would not be considered a post-secondary facility unless it specifically required a secondary school graduation diploma as its normal standard for admission.
We are currently discussing with the Department of Finance how to interpret the term "funding" for purposes of the definition of "public college". We will advise you when the matter has been resolved.
The term "vocational education" means education that prepares a person to practise a trade or vocation. The term "technical education" means education in technical subjects, such as electronics or engine repairs. The term "general education" means education in courses such as language skills, maths, sciences, history and social studies.
2. An organization must meet all the requirements of the definition of "public college" in subsection 123(1) of the ETA. in order to be a public college for GST purposes. Therefore, if it does not fit into the first part of the definition because it does not operate a post-secondary college or a post-secondary technical institute, it is not a public college. This is true even if the facility operates an educational institution that is funded by a provincial government or a municipality and that has as its primary purpose the provision of programs of instruction in one or more fields of vocational, technical or general education.
3. The definition of "general education" was discussed in our response to question 1.
If you require any further information concerning this letter, please contact Mr. Don Dawson at 954-4393.
J. A. Venne
Director
Tax Policy - Special Sectors
GST Policy and Legislation
c.c.: J. Houlahan
D. Dawson
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