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.
FROM Christiana De Benedetti
Rulings Officer
Services and Intangibles Unit, General Operations and Border Issues Division
320 Queen Street, Ottawa, ON
K1A 0L5
TO [Addressee]
Case Number: 129274
DATE December 23, 2013
SUBJECT : GST/HST INTERPRETATION
FCTIP rebate - sales meetings
We are writing to you in response to your facsimile of [mm/dd/yyyy] concerning whether particular meetings held in [...][City 1, Province 1] by [...][Company A] qualify as a foreign convention for purposes of claiming a rebate under the Foreign Convention and Tour Incentive Program (FCTIP). We apologize for the delay in our response.
All references are to the Excise Tax Act (ETA) unless otherwise stated.
The following documents were submitted for our consideration:
* Form GST386, Rebate Application for Foreign Conventions, on which [Company A], a non-resident located in [...][Country X] claimed a FCTIP rebate of $[...] as the organizer of a foreign convention. [...].
* A list of the attendees for the meetings that took place at [City 1, Province 1] during the period from [mm/dd/yyyy] to [mm/dd/yyyy]. The attendees for the meetings were either employees of [...][Company B] and [...][Company C] or [...]([...][clients]). All the attendees were non-residents.
* [...] the purpose of the meetings was for [Company B] and [Company C] to host their [...] clients so that they could showcase their [...] products to them.
* The program agenda for the meetings that took place during [...]. [...]. The following activities took place during [...]: [...][recreational activites and meetings].
[...][Interpretation Given]
In order for an event to qualify as a foreign convention for purposes the FCTIP, it must first be established that the event is a convention for GST/HST purposes.
Subsection 123(1) defines "convention" as a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is
(a) to provide any type of amusement, entertainment or recreation,
(b) to conduct contests or games of chance, or
(c) to transact the business of the convenor or attendees
(i) in the course of a trade show that is open to the general public, or
(ii) otherwise than in the course of a trade show.
As indicated above, to meet the definition of "convention", an event has to be a formal meeting or assembly. Generally, a "formal meeting or assembly" can be regarded as a gathering of people that is organized and structured (i.e., planned in advance and with an agenda) and held for a specific, identified purpose (e.g., for the exchange of information or to discuss and make decisions regarding issues and concerns of interest to the group). In addition, the principal purpose of the meeting or assembly must not be to engage in any of the activities described in paragraphs (a) to (c) of the definition of "convention", as reproduced above. Of particular relevance, the meetings organized by [Company A] described above would not meet the definition of convention if it is established that the principal purpose of the meetings was to transact the business of the convenor or attendees either in the course of a trade show that is open to the general public or otherwise than in the course of a trade show.
The [...] program agenda that was provided in your submission includes only [#] meetings for the [clients]: [...] to discuss, showcase and train the [clients] on the new products that [Company B] and [Company C] are offering. The other items on the [...] agenda are exclusively recreational and entertainment activities. As the primary reason for this meeting was for [Company A] and [Company B] to showcase their [...] products to their [clients], it is our opinion that for purposes of the FCTIP rebate, the primary purpose of the meetings was to transact the business of the attendees. Therefore, the meetings would not be considered to be a convention for purposes of the FCTIP and [Company A] would not be entitled to a rebate under the FCTIP.
Although [Company A] did not submit a program agenda for the other [...] meetings that took place at [City 1], they indicated [...] that the purpose of these subsequent meetings and the activities that took place during these subsequent meetings were the same as [...]. Based on the information provided, these subsequent meetings would also not be considered to be conventions for purposes of the FCTIP and therefore [Company A] would not be entitled to a rebate under the FCTIP with respect to these other meetings.
Please do not hesitate to contact me at 613-952-8814 if you have any questions or concerns.
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