13 September 2004 GST/HST Ruling 52001 - Tax status of amount identified as commission on subcontractor's settlement statement

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.

Dear XXXXX:

Thank you for your letter XXXXX with attachments, concerning your eligibility to apply for a Goods and Services Tax (GST)/Harmonized Sales Tax (HST) employee rebate under section 253 of the Excise Tax Act (ETA). We apologize for the delay in this response.

Statement of Facts

Our understanding of the facts is as follows:

•   You are currently employed by XXXXX and were previously employed by XXXXX.

•   You have incurred certain expenses related to your employment with XXXXX and related to your employment with XXXXX.

•   You have completed Form T2200, Declaration of Conditions of Employment for the following periods:

XXXXX
XXXXX
XXXXX
XXXXX
XXXXX

in order to deduct employment expenses from your income for income tax purposes.

•   XXXXX is a registrant for purposes of the GST/HST and is a listed financial institution pursuant to subsection 123(1) and subparagraph 149(1)(a)(viii) of the ETA.

•   XXXXX is a registrant for purposes of the GST/HST and is a listed financial institution pursuant to subsection 123(1) and subparagraph 149(1)(a)(iv) of the ETA.

Ruling Requested

You are eligible to apply for an employee rebate under section 253 of the ETA for the following periods:

XXXXX
XXXXX
XXXXX
XXXXX
XXXXX.

Ruling Given

Based on the facts set out above, we rule that you are not eligible to apply for an employee rebate under section 253 of the ETA for the following periods:

XXXXX
XXXXX
XXXXX
XXXXX
XXXXX.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to our interpretative policy; and that you have fully described all necessary facts for which you requested a ruling.

Explanation

Section 253 of the ETA provides for a rebate to certain employees and members of partnerships in respect of GST/HST paid on certain employment or partnership related expenses where various conditions are met. One of these conditions is that in order for an individual who is an employee to be eligible to apply for the rebate, the individual must be an employee of a registrant that is not a listed financial institution. Therefore, the fact that an employer is a listed financial institution has an impact on an employee's eligibility to apply for an employee rebate under section 253 of the ETA. Both XXXXX were and continue to be listed financial institutions. Copies of section 253 of the ETA as well as GST/HST Memorandum 17.6, Definition of "Listed Financial Institution" have been enclosed for your reference.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-3413.

Yours truly,

M. Dawn Weisberg
Financial Institutions Unit
Real Property and Financial Institutions Division
Excise and GST/HST Rulings Directorate

2004/09/24 — RITS 52848 — Sale of Leasehold Interest in First Nations Reserve Land