CRA rules that an Ontario palliative care hospice operated by a charity and funded mainly by donations qualified for enhanced GST/HST rebates

CRA ruled that a registered charity receiving a portion of its operating funding from the Ontario Ministry of Health and Long-Term Care (MOHLTC), through the Local Health Integration Networks (LHIN), but relying mainly on donations, to operate a palliative care hospice, qualified for the enhanced 83% federal and 87% Ontario public service body rebates. It reasoned that stipulated requirements for ”chronic care” - such as that the residents be in receipt of “therapeutic care” each day - were not required to be met by such a facility because “palliative care differs from chronic care.”

The minority funding received by the hospice from its LHIN pursuant to an “Accountability Agreement” was sufficient to satisfy the requirements in ETA ss. 259(2.1)(b) and (c) that it receive more than nominal “qualifying (government) funding” and that it be “authorized” by the Province.

Neal Armstrong. Summaries of 24 July 2019 GST/HST Ruling 162099 under ETA s. 259(1) – facility supply and s. 259(2.1)(c).