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
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 93552
Business Number: XXXXX
Attention: XXXXX
XXXXX
February 4, 2009
Subject:
GST/HST RULING
Instruction in languages
Dear XXXXX:
Thank you for your letter of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to instruction in the XXXXX languages of XXXXX and XXXXX by the XXXXX.
All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.
Statement of Facts
Our understanding of the situation is as follows:
1. The XXXXX (the Association) is a corporation that operates otherwise than for profit.
2. XXXXX.
3. The XXXXX (the School) is a subsidiary of the Association that offers instruction in the XXXXX languages of XXXXX and XXXXX designed for children XXXXX.
4. Classes are conducted on XXXXX (XXXXX).
5. Tuition is XXXXX per child per academic year and tuition includes course material, exercise books and student notebooks
6. After completing the courses, the School claims students will be able to read, write and converse in XXXXX. They will also have the ability to read XXXXX articles and newspapers.
7. The School creates the curriculum it offers in the classes for Kindergarten to Grade 9 using XXXXX curriculum as a guide.
8. XXXXX.
9. XXXXX.
10. XXXXX:
XXXXX
XXXXX
11. The School also provides XXXXX approved high school credit courses. Upon successful completion of XXXXX courses students will receive XXXXX high school credits toward their diploma.
Ruling Requested
You would like to know if the instruction by the School in XXXXX language courses designed for students from Kindergarten to Grade 9 are subject to the GST/HST.
Ruling Given
Based on the facts set out above, we rule that the instruction by the School in XXXXX language courses designed for students from Kindergarten to Grade 9 are exempt from the GST/HST pursuant to section 9 of Part III of Schedule V to the ETA.
Explanation
The School supplies instruction to individuals in courses that follow a curriculum that has a clearly defined relationship with a curriculum designated by a school authority. Although the School's curriculum is modified to fit time and student-level constraints not faced by the school authority, when examined together, the School's curriculum has a direct connection with the XXXXX Language Arts Kindergarten to Grade 9 curriculum designated by XXXXX listed on the XXXXX website.
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.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-0420. 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,
Trent MacDonald
Charities, Non-Profit Organizations and Educational Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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