29 October 2004 GST/HST Interpretation 51057 - Incorporating a medical partnership/medical practitioner/service rendered to an individual

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

This is in response to your e-mail XXXXX wherein you have asked us to explain the GST/HST consequences where an Indian band or band-empowered entity (BEE) rents a meeting room at a hotel off reserve.

Technical Information Bulletin B-039R, GST Administrative Policy - Application of GST to Indians (B-039R), states that services acquired on or off reserve by a band or a BEE for band management activities or for real property on reserve are not subject to the GST/HST. These services may be acquired on or off reserve by a band or a BEE tax relieved at the time of purchase, provided the other conditions for relief under B-039R have been met. The phrase "for band management activities or for real property on reserve" is read as one. Therefore, services acquired for real property off reserve cannot be acquired tax relieved nor can a rebate be filed for the tax paid. For example, construction services acquired by a band to build a friendship centre off reserve would be subject to the GST/HST, and no relief on the GST/HST paid would be available by way of a code 8 general rebate.

With respect to purchases of transportation, entertainment, short-term accommodation, and meals (referred to as "eligible travel expenses") acquired off reserve by a band or a BEE, the GST/HST applies at the time of acquisition. So, tax is always payable on supplies of eligible travel expenses acquired off reserve by a band or a BEE. However, a band or a BEE may apply for a rebate. The rebate may be claimed under code 8 of the General Application for Rebate of GST/HST (form GST189) to recover the GST/HST paid on eligible travel expenses acquired off reserve if they are for band management activities or for real property on reserve.

The code 8 general rebate is intended to cover the GST/HST on services for eligible travel expenses incurred by a band or a BEE where band officials travel off reserve for band management activities.

Following the regular GST/HST rules, the rental of a meeting or conference room is deemed to be a supply of real property under subsection 136(1) of the Excise Tax Act, and where the supply is acquired off reserve the supply would be taxable. However, for the purposes of B-039R, the short-term rental of a meeting or conference room off reserve will be treated the same as a supply of short-term accommodation (e.g. hotel room). This means that a code 8 general rebate will be available to a band or a BEE for the short-term rental of a meeting or conference room acquired off reserve for band management activities where the remaining conditions under B-039R have been met.

GST/HST general rebate claims must be filed within two years after the day the amount was paid in accordance with subsection 261(3) of the Excise Tax Act.

If you have any questions or would like to discuss this matter further, you can contact me (613) 952-9264.

2004/11/09 — RITS 55206 — Definition of Taxi Business