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: 153989
Business Number: [...]
December 17, 2013
Dear [Client]:
Subject: GST/HST RULING
A "public college" pursuant to subsection 123(1) of the Excise Tax Act
Thank you for your letter of [mm/dd/yyyy], concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to [...]([...][the Organization]) - [...].
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island (effective April 1, 2013) and 15% in Nova Scotia. The GST applies in the rest of Canada at the rate of 5%.
Effective April 1, 2013, the 12% HST in British Columbia has been replaced by the 5% GST and a provincial sales tax.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
Based on your [correspondence], we understand the facts to be as follows:
1) [The Organization] was incorporated on [mm/dd/yyyy], in the province of [...][Province X].
2) The Regulations to the Letters Patent of [the Organization] include:
i) [...] states that [the Organization] is a not-for-profit organization that is responsible for funding education and training that it offers;
ii) [...] states that [the Organization] is recognized by the Government of [Province X] as an integral part of the post-secondary system of education in [Province X] as it offers quality training in French.
iii) [...] lists [the Organization]'s objectives [...] to accomplish its mission, [the Organization] has the responsibility to:
a) be self-financing.
b) promote continuing education programs and general interest courses [...], training and development for the adult population of [Province X].
c) make available to adults of [Province X] continuing education programs and general interest courses, training and development.
d) [...].
e) organize, administer and provide training programs focused on employment, community training and personal training, as well as continuing education programs and general interest courses.
f) issue certificates specifying that the students have followed the required courses and completed all related requirements.
g) work with other stakeholders in the field of education and adult learning in [Province X] and [...] for the delivery of adult education in the province.
h) [...].
i) [...].
3) [The Organization]:
i) offers the following post-secondary programs leading to a certificate/diploma: bilingual administrative assistant, bilingual bookkeeper, early childhood education, human services intervention worker, resident care worker, practical nursing program, and welding, all of which require the student to have a high school diploma or equivalency as an entrance requirement;
ii) offers French language training courses at various levels ([...]);
iii) provides training to adults working towards obtaining their grade 12 equivalency or their grade 12 academic certificate through its various centres;
iv) provides training to individuals who need to work towards writing their GED exam; and
v) offers general interest courses, such as, First Aid, WHMIS, and introduction to computers.
4) [...].
5) [...].
6) [...] indicates that the Government (of [Province X]) recognizes [the Organization]'s services as an integral part of the post-secondary education system.
7) [...] states that the: Government (of [Province X]) wishes to recognize [the Organization] as a publicly funded educational institution.
8) [...] provides for the potential for a subsequent [...] at the expiration of the current one.
Ruling Requested
You would like to know whether [the Organization] is a public college pursuant to subsection 123(1) of the ETA.
Ruling Given
Based on the facts set out above, we rule that [the Organization] is a public college as defined in subsection 123(1) of the ETA.
The conditions that have been met by [the Organization] that qualifies it as a "public college" are:
* it is operating a post-secondary college or post-secondary technical institute;
* it receives funds from a government that are for the purpose of assisting [the Organization] with its ongoing provision of educational services to the general public; and
* the primary purpose of [the Organization] is to provide programs of instruction in one or more fields of vocational, technical or general education.
Detailed information on the conditions that must be met for an organization to be a "public college for purposes of the ETA can be found in GST/HST Policy Statement P-186 Funding for Public Colleges.
Please be aware that should the facts change, [the Organization] may no longer qualify as a public college for purposes of the ETA. For example, if in the future [the Organization] is no longer funded by the provincial government, or [the Organization]'s primary purpose is not that of providing programs of instruction in one or more fields of vocational, technical or general education, [the Organization] would not qualify as a public college.
We understand that the [...][Province Y] Tax Services Office [...][City Y, Province Y] will be providing a ruling to [the Organization] as to the tax status of the specific courses/programs offered by [the Organization], and [the Organization]'s obligation under the ETA with respect to registering for GST/HST purposes.
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.
For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-7954. 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,
K. Bennett
Aboriginal Affairs and Educational Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
Enc.: GST/HST Memorandum 1.4
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