Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa, ON K1A 0L5
[Addressee]
Case Number: 162819
Dear [Client]:
Subject: GST/HST INTERPRETATION
Power of Attorney Services
Thank you for your [correspondence] of [mm/dd/yyyy], concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to power of attorney (POA) services.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand that
1. You own a GST/HST registered corporation that provides tax preparation services.
2. You are not registered for the GST/HST as an individual.
3. You, as an individual, entered into a power of attorney with two other individuals who due to their age and health have determined that they require a power of attorney. The power of attorney services are not being supplied by the corporation.
4. You are considering charging the two individuals for the supply of the power of attorney services.
INTERPRETATION REQUESTED
You would like to confirm the application of the GST/HST to the supply of the power of attorney services.
INTERPRETATION GIVEN
A power of attorney is a private relationship between two persons whereby a particular person appoints another person and confers authority to the other person to perform specific acts on the particular person’s behalf.
A power of attorney is an “office” for purposes of the definition of “office” under subsection 123(1). Services performed in the course of the performance of an “office” are excluded from the definition of “business” under that same subsection. The performance of the duties pursuant to a power of attorneyship is not considered to be a supply made in the course of commercial activities. Therefore, when you supply power of attorney services as described above, the supply is not subject to the GST/HST.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the interpretation given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-670-9889. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Raymond Labelle
Goods Unit
Excise and GST/HST Rulings
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