Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
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XXXXX
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Case Number: 104816
Attention: XXXXX
September 4, 2008
Subject:
GST/HST INTERPRETATION
Electronic Signature and subsection 177(1.1)
Dear XXXXX:
Thank you for your fax XXXXX concerning whether electronic signatures for purposes of subsection 177(1.1) of the Excise Tax Act (ETA) are acceptable to the Canada Revenue Agency (CRA).
All legislative references are to the (ETA) and the regulations thereunder, unless otherwise specified.
We understand the facts as follows:
1. An agent and a principal will enter into an online agreement to have the agent make supplies on behalf of the principal.
2. As part of the agreement, the principal and the agent will agree to have the agent collect and account for the GST/HST on supplies made by the agent on the principal's behalf.
3. In this regard, the agreement will incorporate the language and representations contained in Form GST506, Election and Revocation of an Election Between Agent and Principal.
4. The parties will enter into the agreement through the Internet and will use electronic signatures to indicate their acceptance of the terms of the agreement, including the agency election.
Interpretation Requested
You would like to confirm whether the CRA will consider the parties to have made a valid election if they use electronic signatures to make the Certifications set out in Part D and E of Form GST506.
Interpretation Given
Based on the information provided, we are pleased to provide you with the following interpretation.
CRA confirms that electronic signatures for purposes of the election pursuant to subsection 177(1.1) are acceptable provided the electronic records exhibit the characteristics of reliability, integrity and authenticity, as required by paragraph 22 of GST/HST Memorandum 15.2, Computerized Records.
With respect to the issue of whether form GST506 must be used, CRA agrees that the parties may prepare their own document which will constitute a valid election between a principal and agent for purposes of subsection 177(1.1), as long as the document contains the prescribed information.
The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the ETA, regulations, or our interpretative policy could affect this interpretation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 957-8223.
Yours truly,
Daniel Chamaillard
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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