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.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 129273
December 7, 2010
Dear [Client]:
Subject:
EXCISE INTERPRETATION
Applicability of Air Travellers Security Charge
Thank you for your letter of September 14, 2010, requesting clarification of the application of the Air Travellers Security Charge Act (ATSCA) to the situations presented. Your letter has been forwarded from [...], Canada Revenue Agency, [...] Region to Headquarters for reply.
All legislative references are to the ATSCA and the regulations therein, unless otherwise specified.
Statement of Facts
Based on the information in your letter, the following is our understanding of the facts:
Scenario 1
1. Red Deer, AB and Grande Prairie, AB are listed airports. Fort Nelson, BC is a non-listed airport.
2. Passengers board a flight in Red Deer and fly to Grande Prairie, where they pick up additional passengers and then fly to the final destination of Fort Nelson, BC.
3. All passengers disembark at Fort Nelson, BC.
Scenario 2
1. Red Deer, AB and Grande Prairie, AB are listed airports. Fort Nelson, BC is a non-listed airport.
2. Passengers board a flight in Red Deer and fly to Grande Prairie. The flight takes on fuel and flies to its final destination of Fort Nelson, BC.
3. All passengers disembark at Fort Nelson, BC.
Scenario 3
1. Red Deer, AB and Grande Prairie, AB are listed airports. Fort Nelson, BC is a non-listed airport.
2. Passengers board a flight in Red Deer and change aircraft (make a connection) in Grande Prairie and fly to the final destination of Fort Nelson, BC.
3. All passengers disembark in Fort Nelson, BC.
Interpretation Requested
We understand that you would like to know whether the ATSC applies to the following:
1. A flight from a listed airport in Red Deer, AB and Grande Prairie, AB to a final destination, a non-listed airport in Fort Nelson, BC.
2. A flight from a listed airport in Red Deer, AB with a fuel pick up in Grande Prairie, AB to a final destination, a non-listed airport in Fort Nelson, BC.
3. A flight from a listed airport in Red Deer, AB with a connecting flight in Grande Prairie, AB to a final destination, a non-listed airport in Fort Nelson, BC.
Interpretation Given
Scenario 1
Based on the facts above and pursuant to subparagraph 2(a)(iii) of the ATSCA, the Air Travellers Security Charge (ATSC) does not apply to passengers boarding an aircraft used for transport on a direct flight to a destination in Canada that is not a listed airport. The embarkation (Red Deer) is for transport on a direct flight to a destination in Canada that is not a listed airport (Fort Nelson). The stop in Grande Prairie is not considered a stopover.
Scenario 2
Based on the facts above and pursuant to subparagraph 2(a)(iii), the ATSC does not apply to passengers boarding an aircraft used for transport on a direct flight to a destination in Canada that is not a listed airport; even though the flight refuels at a listed airport. The embarkation (Red Deer) is for transport on a direct flight to a destination in Canada that is not a listed airport (Fort Nelson). The refuelling of the plane in Grande Prairie does not affect the applicability of the ATSC.
Scenario 3
Based on the facts above and pursuant to clause 2(a)(i)(C), the ATSC does not apply to passengers where the embarkation is for the purpose of transferring from a particular flight to a connecting flight and the particular flight included an embarkation that, because of this subparagraph, is not a chargeable emplanement. The embarkation (Red Deer) is for the purpose of transferring to a connecting flight in Grande Prairie, it is not a chargeable emplanement.
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, Goods and Services Tax Rulings, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the Excise Tax Act, 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 613-954-6720.
Yours truly,
Sharon Kendall
Softwood Lumber and Other Taxes Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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