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.
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Security Classification - Classification de sécurité
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XXXXX
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Our File - Notre reference
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51073
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Your File - Votre reference
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49493
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Date
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June 16, 2004
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XXXXX
XXXXX
XXXXX
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Dwight Kostjuk
Aboriginal Affairs Unit
PSBs & Gov'ts Division
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Subject:
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Acquisition of Medical Services by Indian bands and band-empowered entities
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Thank you for your enquiry in which you asked us for our interpretation of the application of the GST to the following scenario.
A supplier of psychotherapy services, who is not a practitioner of psychological services for purposes of Schedule V to the Excise Tax Act, renders taxable services to members of several Indian bands located near her office (her patients travel to her off-reserve office to receive her services).
The supplier invoices each of the Indian bands directly for the services rendered to their respective band members who are her patients. The supplier charges the GST. The bands pay the supplier directly.
XXXXX The funding to pay for the medical services may come to the band from Health Canada, charitable sources, or other sources.
The clients are referred to the supplier by social workers or frontline caregivers on reserve, and the clients are residents of reserves.
Recently, a certain Indian band used the band or band-empowered entity certificate described in Technical Information Bulletin B-039R, GST Administrative Policy, Application of GST to Indians when paying the supplier and did not include an amount for the GST. The certificate states that the goods and services are being acquired by the band for band management activities (BMA) and are therefore not subject to the GST.
Interpretation Requested
Can the supplier accept the certificate and not have to collect the GST from the band?
Interpretation Given
Yes, where the band acquires taxable supplies of counseling services as part of a band program for the benefit of its members, the band can use the certificate to obtain tax relief as the program would qualify as a band management activity.
If you require more information or a clarification of the above interpretation, please call me at (613) 957-1175.
2004/07/06 — RITS 51874 — [Application of Tolls Charged and Collected by a Municipality]
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