A registered charity, which is also registered for GST/HST purposes, charges employers or sponsors fees for providing training to apprentices, and also charges a cancellation fee if the apprentice withdraws from training during a specified time period. After finding that the training charge was consideration for a single supply that was exempted under Sched. V, Pt, V.1, s. 1, CRA went on to find that the cancellation fee also was not taxable:
The [cancellation fee] is not made in respect of any supply. Rather, it is required to be made by the employer/sponsor as compensation or indemnification for damages (e.g., loss of income from the [third party] for services rendered, inconvenience).