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, 11th floor
320 Queen Street
Ottawa, ON K1A 0L5
[Addressee]
Case Number: 162099
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
83% Public Service Body rebate eligibility
This letter is in response to […] [a] letter received by us on March 31, 2014, concerning the application of the goods and services tax (GST)/harmonized sales tax (HST) to the services provided by […] (the Corporation). We apologize for the delay in our response.
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, from the letter dated March 31, 2014; […][and from other correspondence submitted; and from our conversations and other records], that:
1. The Corporation is a registered charity within the meaning assigned to that expression by subsection 248(1) of the Income Tax Act and is, therefore, a charity for purposes of Part IX of the ETA. The Corporation was given the Business Number[…]
2. […][Information about the Corporation’s operations and services]
3. […].
4. The Corporation operates a […] hospice […]
5. […].
6. […]
7. […][Information about admission to the Facility] (Footnote 1) […]
8. […]
9. […][More Information about admission to the Facility]
10. […].
11. Patients receive care from […][physicians, nurses and other health care professionals].
12. Goods and services provided to patients include accommodation, meals, personal support services and other services intended to meet the patient’s individual needs.
13. […][Information about Health care equipment available at the facility]
14. […]
15. […].
16. Care plans are prepared for every patient. […]
17. […][Information about patient care]
18. […]
19. […].
20. […][More information about patient care]
21. […]
22. […]
23. […][Patient services available at the Facility]
24. […].
25. […][Patient services available outside the Facility].
26. […]
27. Physicians provide health care services to patients. These health care services consist of assessing patients, providing physical examinations, making medication decisions, […][requisitioning diagnostic services and other services]. […].
28. […].
29. In regard to physician care, there is a Medical Director. […]
30. […]
31. All the physicians offer a 24/7 on-call service. […]
32. All patients have a physician on call at all times. […].
33. Physicians attend interdisciplinary meetings regarding the patients. […].
34. […]
35. Orders are written by the physicians (including the Medical Director), and then carried out by the nurses.
36. […]
37. The nursing staff spends several hours each day assisting each patient with the activities of daily living, such as transferring, toileting, feeding, and mobility, […].
38. Nursing staff spend significant time for phone consultations with physicians to discuss changes in orders. […].
39. […].
40. Other specialists, such as physiotherapists, occupational therapists, respiratory therapists, or others, are brought in as needed. […].
41. […].
42. […].
43. The Corporation receives [relevant provincial] funding […] from the Ministry of Health and Long-Term Care (MOHLTC), through the LHIN. […].
44. The Corporation signed an Accountability Agreement […]
45. […]
46. Financial statements for the year [mm/dd/yyyy] indicate that […][funding from the government amounts to] $[…] of $[…] total revenues.
47. […].
48. The Corporation does not have an accreditation, license to operate, or authorization from a provincial or federal government. However, there is no requirement to have one.
RULING REQUESTED
You would like to know whether the Corporation is entitled to claim an 83% public service body (PSB) rebate of the GST and the federal part of the HST as a facility operator.
RULING GIVEN
Based on the facts set out above, we rule that the Corporation is a facility operator making facility supplies at a qualifying facility, that is, the Facility.
As such, the Corporation is eligible to claim an 83% PSB rebate of the GST and the federal part of the HST for non-creditable tax charged (Footnote 2) in respect of property or services to the extent that the property or services are for consumption, use or supply in activities engaged in by the Corporation in the course of operating the Facility for use in making facility supplies, or in the course of making facility supplies, ancillary supplies and home medical supplies.
In addition, the Corporation, as a facility operator resident only in Ontario, is also eligible to claim an 87% PSB rebate for the provincial part of the HST for non-creditable tax charged in respect of property or services to the extent that the property or services are for consumption, use or supply in activities engaged in by the Corporation in Ontario in the course of operating the Facility for use in making facility supplies, or in the course of making facility supplies, ancillary supplies and home medical supplies.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
EXPLANATION
To be eligible for an 83% PSB rebate of the GST and the federal part of the HST, and in the case of a person resident in Ontario, an 87% PSB rebate of the provincial part of the HST (hereafter these two rebates will be referred to as the “83% (and 87%) PSB rebate”), the person must be a “hospital authority”, a “facility operator” or an “external supplier”.
Hospital Authority
A “hospital authority” is defined in subsection 123(1) as “an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority” for GST/HST purposes.
The Corporation does not operate a public hospital and is not designated as a hospital authority.
Therefore, to determine whether there is eligibility for the 83% (and 87%) PSB rebate, it is necessary to determine whether the Corporation is a “facility operator” or an “external supplier”.
Facility Operator
A “facility operator” is defined in subsection 259(1) as meaning “a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility”.
As the Corporation is a charity, it meets the first requirement of the definition. In order to meet the second requirement, the Corporation must operate a “qualifying facility”.
Qualifying facility
Subsection 259(2.1) sets out three criteria that must be met for a facility, or part of a facility, other than a public hospital, to be a qualifying facility, for a fiscal year, or any part of a fiscal year, of the operator of the facility or part.
A facility or part of a facility will be considered a qualifying facility if:
(a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition of “facility supply” in subsection 259(1) to “public hospital or qualifying facility” were references to the facility or part;
(b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and
(c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
The requirements contained in (a) to (c) above must be met in order for a particular facility to be a “qualifying facility” for purposes of section 259. A discussion of these requirements follows.
Facility Supply
Subsection 259(1) defines the term “facility supply” as
“an exempt supply (other than a prescribed supply) of property or a service in respect of which
(a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process
(i) is undertaken in whole or in part at the public hospital or qualifying facility,
(ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of
(A) a physician acting in the course of the practise of medicine,
(B) a midwife acting in the course of the practise of midwifery,
(C) if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner acting in the course of the practise of a nurse practitioner, or
(D) a prescribed person acting in prescribed circumstances, and
(iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that
(A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(B) a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and
(D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and
(b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier.”
A “physician” is defined in subsection 259(1) as “a person who is entitled under the laws of a province to practise the profession of medicine”.
The definition of “facility supply” is to be applied on a supply-by-supply basis. To be a “facility supply”, the property made available or the service rendered to an individual at the public hospital or qualifying facility must be an exempt supply (other than a prescribed supply). Exempt supplies are listed in Schedule V to the ETA.
Section 1 of Part V.1 of Schedule V exempts supplies of property or a service made by a charity unless specifically excluded under paragraphs (a) to (p) of that section. As the Corporation is a charity, the supplies it makes to the patients would generally be exempt under section 1 of Part V.1 of Schedule V.
Section 2 of Part II of Schedule V exempts a supply of an institutional health care service made by the operator of a health care facility if the service is rendered to a patient or resident of the facility. The terms “institutional health care service” and “health care facility” are defined in section 1 of Part II of Schedule V. Section 2 of Part II of Schedule V may also apply to exempt supplies of services that the Corporation makes.
Of note, if a supply is of an institutional health care service that falls within section 2 of Part II of Schedule V, it is necessary to determine if the supply is excluded from the exemption because the supply is a cosmetic service supply or because the supply is not a qualifying health care supply, pursuant to sections 1.1 and 1.2 of Part II of Schedule V (Footnote 3) .
The combination of paragraph (a), subparagraphs (a)(i) and (a)(ii), and clause (a)(ii)(A) of the definition of “facility supply” further requires that the exempt supply of property be made available, or the exempt supply of a service be rendered, at a public hospital or qualifying facility and be part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative care. This process must be undertaken in whole or in part at the public hospital or qualifying facility and reasonably be expected to take place under the active direction or supervision, or with the active involvement, of a physician acting in the course of practise of medicine (or in certain circumstances, a midwife, a nurse practitioner or a prescribed person in prescribed circumstances).
It is our understanding that palliative care differs from chronic care. Therefore, it is not necessary for elements referred to in clauses (a)(iii)(A) to (D) of the definition of “facility supply” to be met in order for a supply to qualify as a “facility supply”, where only palliative care is being provided, as in the present case.
The decision of the Tax Court of Canada in Elim Housing Society v The Queen (2013-148(GST)G) addressed the question as to whether Elim Housing Society (Elim) was a facility operator operating a qualifying facility. In this decision, the judge made the determination that Elim was entitled to claim the 83% PSB rebate as a facility operator operating a qualifying facility based on the presence of the following elements which indicated Elim was making facility supplies:
- all of the residents had conditions that required “complex care” as that term was defined in a policy manual of the B.C. Ministry of Health Services;
- the residents were extremely dependent on care either by reason of mental or physical impairment, or both;
- residents were under the care of a physician, who was either associated with the facility or had a pre-existing relationship with the resident;
- a tailored care plan was created for each resident, documented and implemented:
- detailed records were kept on the implementation of the care plans,
- medication reviews were required every six months, and
- inter-disciplinary meetings were held annually;
- physicians visited residents frequently (e.g., roughly on a bi-weekly basis);
- physicians were at, or on-call to attend, the facility at all times;
- physicians provided substantial medical care (e.g., addressed medical concerns, participated in medication reviews, attended interdisciplinary meetings);
- registered nurses were at the facility at all times, and nurses were in regular communication with physicians for prescription or advice;
- the facility received funding for 2.8 hours of care per resident per day (the calculation was based on scheduled staffing hours);
- the care provided was of a different type than ordinary assistance with activities of daily living that a more robust individual might require.
After comparing the services and the care provided at the Facility to its patients to the relevant elements described in Elim, we are of the view that facility supplies are provided at the Facility by the Corporation.
To the extent that the health care services provided at the Facility are exempt supplies that are part of a medically necessary process of health care for the individual for purposes described in paragraph (a) of the definition of “facility supply” and are rendered at the Facility under the active direction or supervision, or with the active involvement, of a physician, they will meet the requirements of subparagraphs (a)(i) and (a)(ii) of the definition and will, therefore, constitute facility supplies.
If the Corporation engages in any activities or programs for which there is no expectation of active physician direction or supervision, or active physician involvement, being undertaken, then supplies of services provided within such activities or programs would not fall within the definition of “facility supply”, and thus such activities or programs would not be eligible for the 83% (and 87%) PSB rebate under this particular provision. As noted below, the Corporation may still be entitled to a 50% PSB rebate of the GST and the federal part of the HST and a 82% PSB rebate for the provincial part of the HST for charities in relation to such supplies of services.
As mentioned above, subsection 259(2.1) sets out three criteria that must be met in order for a facility or part of a facility to be considered a qualifying facility for all or part of a fiscal year. The first criterion that must be met, under paragraph 259(2.1)(a), is that the exempt supplies made at the qualifying facility must be facility supplies. The exempt supplies that are facility supplies made by the Corporation would meet this first criterion.
Qualifying Funding
The second criterion that must be met under paragraph 259(2.1)(b) for a facility to be a “qualifying facility” is that an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part.
Subsection 259(1) defines “qualifying funding” of the operator of a facility for all or part of a fiscal year of the operator as meaning “a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made.”
The Corporation has entered into a funding agreement with the LHIN to fund the services provided by the Corporation. The funding provided by the LHIN to the Corporation in respect of its operation of the Facility under the funding agreement constitutes “qualifying funding”, thus meeting the second criterion under the paragraph 259(2.1)(b) description of a “qualifying facility”.
This criterion is thus satisfied.
Accreditation, licence or other authorization
The third criterion that must be met under paragraph 259(2.1)(c) for a facility, or part of a facility, other than a public hospital, to be a qualifying facility for a fiscal year, or any part of a fiscal year of the operator of the facility, or part, is that an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
The Province of Ontario does not require an accreditation, licence or authorization to operate a residential hospice whose nursing services provided to residents/patients are funded directly or indirectly by the MOHLTC.
The MOHLTC (via the LHIN) provides funding for the Facility’s services. The Corporation is accountable to the LHIN. Through the Accountability Agreement, the LHIN provides funding to the Corporation for palliative care services. The Corporation is accountable to the LHIN, which is accountable to the MOHLTC.
[…].
It is our view that the combination of these elements allows us to conclude that the Corporation, as the operator of the Facility, has an authorization that is recognized or provided for under a law of a province in respect of facilities for the provision of health care services.
Thus, in our view, the third criterion that must be met under paragraph 259(2.1)(c) for a facility to be a qualifying facility is satisfied.
Summary of “qualifying facility” analysis
To summarize, the Facility meets all of the requirements of paragraphs (a) to (c) of the definition of “qualifying facility” in subsection 259(2.1) and, as a result, the Corporation is a facility operator for purposes of section 259. Accordingly, the Corporation qualifies for an 83% rebate of the GST and the federal part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use or supply the property or service in the course of activities engaged in by the Corporation in the course of operating a qualifying facility for use in making facility supplies, or in the course of making facility supplies. As a resident of Ontario, the Corporation qualifies for an 87% rebate of the provincial part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use or supply the property or service in the course of activities engaged in by the Corporation in Ontario in the course of operating a qualifying facility for use in making facility supplies, or in the course of making facility supplies.
As discussed above, the definition of “facility supply” requires that an exempt supply made to an individual at a qualifying facility be part of a medically necessary process of health care that is reasonably expected to take place under the active direction or supervision, or with the active involvement, of a physician. As such, not necessarily all supplies made by the Corporation constitute facility supplies. The determination of whether a particular supply is a facility supply is to be made on a case-by-case basis.
A facility operator may also be entitled to claim an 83% rebate of the GST and the federal part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use or supply the property or service in the course of activities engaged in by the Corporation in the course of making ancillary supplies or home medical supplies. As a resident in Ontario, it may also be entitled to claim an 87% rebate of the provincial part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use or supply the property or service in the course of activities engaged in by the Corporation in Ontario in the course of making ancillary supplies or home medical supplies.
As there is no indication that the Corporation is involved in the provision of ancillary supplies or home medical supplies, we offer the following information for your reference.
Ancillary supplies
Subsection 259(1) defines an “ancillary supply” to mean
"(a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or
(b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding.”
Home medical supply
Subsection 259(1) defines a “home medical supply” to mean
"an exempt supply (other than a facility supply or a prescribed supply) of property or a service
(a) that is made
(i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and
(ii) after a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances, has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility),
(b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances,
(c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and
(d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier.”
Subsection 259(1) defines “medical funding” of a supplier in respect of a supply to be
“an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made.”
Calculation of the PSB rebate
Section 259 provides that the PSB rebate is calculated and claimed on a claim period by claim period basis. The claim periods of a GST/HST registrant are the same as the reporting periods for its GST/HST returns (i.e., annually, quarterly or monthly). A PSB that is not a GST/HST registrant has two claim periods per fiscal year – the first six months and the last six months of its fiscal year.
A PSB claims its rebate on a property-by-property or service-by-service basis. It is the intended consumption, use or supply of a particular property or service at the relevant time that determines the PSB rebate entitlement for the non-creditable GST or HST paid on that property or service, not the overall activities of the PSB. Generally, the relevant time will be the time the supply was made to, or the property was imported or brought into Ontario by, the Corporation.
As required by subsection 259(4.1), the Corporation will be required to apportion its rebate claims between its inputs that are for consumption, use or supply in its activities carried on in the course of operating a qualifying facility for use in making facility supplies or in the course of making facility supplies, ancillary supplies or home medical supplies, and its other activities (if any).
The 83% (and 87%) PSB rebate rate may not apply to all of the Corporation’s purchases and expenses. Pursuant to subsection 259(14), where all or substantially all of the non-creditable tax charged for a claim period is tax incurred in its capacity as a facility operator, the Corporation will be entitled to claim an 83% (and 87%) PSB rebate on all of the non-creditable tax charged for that claim period. In other words, if 90% or more of the non-creditable tax charged for a claim period is tax incurred in activities engaged in by the Corporation in the course of operating a qualifying facility for use in making facility supplies, or in the course of making facility supplies, ancillary supplies, or home medical supplies, then the Corporation will be entitled to claim an 83% (and 87%) PSB rebate on all of the non-creditable tax charged for that claim period. If less than 90% of non-creditable tax charged in a claim period is for these purposes, then the Corporation is entitled to claim an 83% (and 87%) PSB rebate to the extent the non-creditable tax charged is for activities engaged in by the Corporation in the course of operating a qualifying facility for use in making facility supplies, or in the course of making of facility supplies, ancillary supplies, or home medical supplies.
Rebate for purchases that do not qualify for 83% rebate
As a charity for purposes of the GST/HST, the Corporation is eligible to claim a 50% PSB rebate of the GST, and the federal part of the HST, paid or payable on eligible purchases and expenses intended for consumption, use or supply in activities engaged in by the Corporation otherwise than in the course of operating the Facility for use in making facility supplies, or in the course of making facility supplies, ancillary supplies and home medical supplies.
As the Corporation is only resident in Ontario, it is also eligible for an 82% PSB rebate of the provincial part of the HST paid or payable on eligible purchases and expenses intended for consumption, use or supply in activities engaged in by the Corporation otherwise than in the course of operating the Facility for use in making facility supplies, or in the course of making facility supplies, ancillary supplies and home medical supplies.
PSB rebates from previous periods
The Corporation may find that it has GST/HST that was paid or payable but has not been claimed in a rebate or that it has claimed rebates in respect of certain activities at an incorrect rate. The requirements for claiming such additional rebate amounts are not the same and are described in detail below.
Where a person has made an application for a PSB rebate for a particular claim period and later discovers additional GST/HST that was paid or payable in that claim period but was not claimed, subsection 259(6.1) may apply. Where certain conditions are met, subsection 259(6.1) allows a PSB to claim a rebate in respect of property or a service for a particular claim period in a rebate application for a subsequent claim period ending after September 8, 2017. If a PSB has not claimed a rebate in respect of property or a service for a particular claim period, subsection 259(6.1) allows the rebate to be carried forward where the following four conditions are met:
- The PSB did not claim the rebate in the application for any other claim period;
- The application for the subsequent claim period is filed within two years after
- if the person is a registrant, the day on or before which the person is required to file its GST/HST return for the particular claim period, and
- if the person is not a registrant, the day that is three months after the last day of the particular claim period;
- The PSB did not change the claimant type under which it was eligible to claim PSB rebates at any time from the beginning of the claim period in which the GST/HST was paid or payable to the end of the subsequent claim period; and
- The applicable rebate factor(s) did not change at any time from the beginning of the claim period in which the GST/HST was paid or payable to the end of the subsequent claim period.
Subsection 259(6.1) does not apply in situations where a person has claimed a PSB rebate in respect of a property or service and later finds out that it was eligible to claim the rebate at a higher rate. If the Corporation has already claimed a PSB rebate for a claim period and subsequently discovers that the rebate was not claimed at the proper rate, the Corporation must adjust the previously filed rebate application to claim a PSB rebate at the higher rate. The Corporation cannot include the additional rebate amount in the PSB rebate application for a different claim period. For more information on how to adjust a previously filed rebate claim, see "How do you make changes to a rebate application you already filed?" in GST/HST Guide RC4034, GST/HST Public Service Bodies' Rebate. A reassessment or additional assessment of a rebate claim shall not normally be made more than four years after the day the application for the rebate was filed.
For more information on the calculation of the rebate, please refer to the same GST/HST Guide RC4034, GST/HST Public Service Bodies' Rebate. This guide is available on our website.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 306-517-0416. 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,
John Ware
Health Care Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
FOOTNOTES
1 […]
2 In general terms, “non-creditable tax charged” means the GST/HST paid or payable on property or services for which the Corporation cannot claim an input tax credit, rebate, refund or remission other than a PSB rebate.
3 Section 1.1 of Part II of Schedule V provides that, “For the purposes of this Part, other than section 9, a cosmetic service supply and a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes are deemed not to be included in this Part.”
A “cosmetic service supply” is defined in section 1 of Part II of Schedule V to mean, “a supply of property or a service that is made for cosmetic purposes and not for medical or reconstructive purposes”.
Section 1.2 of Part II of Schedule V provides that, “For the purposes of this Part, other than sections 9 and 11 to 14, a supply that is not a qualifying health care supply is deemed not to be included in this Part.”
A “qualifying health case supply” is defined in section 1 of Part II of Schedule V to mean,
“a supply of property or a service that is made for the purpose of
(a) maintaining health,
(b) preventing disease,
(c) treating, relieving or remediating an injury, illness, disorder or disability,
(d) assisting (other than financially) an individual in coping with an injury, illness, disorder or disability, or
(e) providing palliative health care.”
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