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: 133484
August 10, 2011
Dear [Client]:
Subject:
GST/HST INTERPRETATION
Definitions of the terms "Licence", "Permit" and "Quota"
Thank you for your letter of March 2, 2011, requesting the definition of the terms "licence", "permit" and "quota" as they pertain to GST/HST. Based on a subsequent conversation with you on June 14, 2011, you indicated that you are asking for the meaning of these terms in the context of paragraph 20(c) of Part VI of Schedule V to the Excise Tax Act (ETA). You also indicated that this was a general question that did not relate to a specific set of facts. As such, we informed you that we would provide you with general information with respect to our approach in interpreting the terms noted above.
Part VI of Schedule V to the ETA exempts from the GST/HST certain supplies made by public sector bodies. Paragraph 20(c) of Part VI of Schedule V to the ETA exempts "the following supplies made by a government or municipality or by a board, commission or other body established by a government or municipality:
c) a supply (other than a right or service supplied in respect of the importation of alcoholic beverages) of
i) a licence, permit, quota or similar right,
ii) a service of processing an application for a licence, permit, quota or similar right, or
iii) a right to have access to, or to use, a filing or registration system to make application for a licence, permit, quota or similar right".
The terms "licence", "permit" and "quota" are not specifically defined in the ETA. When there is no definition provided for a term found in legislation, we generally apply the rules of statutory interpretation to interpret its meaning. In general, we apply the ordinary meaning of words used in their ordinary grammatical sense. Therefore, we look to the dictionary or other relevant documents to assist us in establishing the ordinary meaning of a word used in legislation.
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 613-954-7947. 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,
Francine Prevost
Government Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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