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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Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
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XXXXX
XXXXX
XXXXX
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Case Number: 51149
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XXXXX
XXXXX
XXXXX
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April 21, 2004
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Subject:
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Temporary Importation of Amusement Rides
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Dear XXXXX:
Thank you for your letter XXXXX requesting partial relief of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) payable on the temporary importation of the amusement rides.
Statement of Facts
1. XXXXX intends to temporarily import the following amusement rides for use at fairs and exhibitions across Canada:
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
2. The amusement rides will be imported through the XXXXX. The rides will be imported into Canada during the months of XXXXX and will be in Canada for less than one year.
3. Neither title to nor beneficial use of the amusement rides is intended to pass, or passes, to a person while the amusement rides are in Canada.
4. The amusement rides are not imported for the purpose of further manufacture, alteration, processing, repair, or maintenance.
TEMPORARY IMPORTATION OF AMUSEMENT RIDES
Based on the above facts, the Canada Revenue Agency (CRA) will recommend that the GST/HST payable on the importation of the amusement rides be partially relieved by way of a special Order in Council. The GST/HST will be payable only on 1/60th of the value of the amusement rides for each month or portion thereof that the rides are in Canada. This recommendation is supported by the Department of Finance.
In view of the facts of the case, it was not possible to complete the order and obtain approval of the Governor in Council prior to the importation. Consequently, CRA will allow the importation on a 1/60th basis pending approval by the Governor in Council of the order, on the understanding that GST/HST, together with any interest and penalty, would be payable if approval is not granted or if the terms of the order are not met.
This letter is valid for a period of four months XXXXX to permit the importation of the amusement rides. Special authority number XXXXX is to be shown in the special authority field on the Canada Border Services Agency (CBSA) accounting document as applying to amusement rides. A copy of this letter will be sent to Ms. Debbie Arcand, Manager, Trade Incentives and Refunds Unit, Trade Policy and Interpretation Directorate, CBSA in Ottawa. Please contact your local CBSA office with this letter for additional information concerning import procedures and export requirements.
TEMPORARY IMPORTATION OF OTHER GOODS
In your letter, you state that you will also be importing food concessions, game concessions and other goods like living quarters. Please note that some of these goods may qualify for partial relief of the GST/HST under the Side Shows and Concessions Remission Order, which is administered by CBSA. If you need information concerning the temporary importation of these goods, please contact your local CBSA office.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact Donato Licursi at (613) 952-4294.
Yours truly,
John Sitka
Director
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Policy and Planning Branch
[i] 1. The terms "supply" and "taxable supply" are defined as follows in subsection 123(1) of the Act:
"supply" means [...] the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition.
"taxable supply" means a supply that is made in the course of a commercial activity.
[ii] 2. The term "exempt supply" is defined as follows at subsection 123(1) of the Act:
"exempt supply" means a supply included in Schedule V.
[iii] 3. The term "residential unit" is defined in subsection 123(1) of the Act. The relevant parts of that definition read as follows:
"residential unit" means
(a) a detached house, ... condominium unit, ... or apartment,
(b) a suite or room in a hotel, ... a boarding house or lodging house ..., or
(c) any other similar premises,
or that part thereof that
(d) is occupied by an individual as a place of residence or lodging,
(e) is supplied by way of lease, licence or similar arrangement for the occupancy thereof as a place of residence or lodging for individuals.
[iv] 4. Subsection 191(7) applies where a registrant employer acquires, constructs or substantially renovates a new residential complex or an addition thereto, for the accommodation of employees at a work site, because of its remoteness from any established community, these individuals could not reasonably be expected to establish and maintain a self-contained domestic establishment. Where the registrant employer elects under this subsection, subsections 191(1) to (4) (i.e., the self-supply rules) do not apply when the residential complex is first occupied. The provision of a place of residence or lodging at a remote work site is considered a supply under subsection 191(7). However, where the registrant employer elects under this subsection, the supply of the residential complex (or a residential unit in the complex) is deemed not to be a supply until the property is sold or is supplied primarily to persons who are not employees. Any GST liability incurred by a registrant employer related to the purchase, construction, or substantial renovation of a residential complex at a remote work site generally will qualify for ITCs in the normal manner.
[v] 1. On December 20, 2002, the Department of Finance announced a proposal to amend this provision by replacing the term "speech therapy" services with "speech-language pathology" services and to continue indefinitely the exemption for these services. A corresponding amendment was proposed to the definition of "practitioner" in Part II of Schedule V to the ETA to replace the term "speech therapy" with "speech-language pathology". The change in terminology does not alter the scope of coverage of this provision. The proposed amendments apply to supplies made after 2001. These proposed amendments have not yet received Royal Assent from Parliament.
[vi] 2. Depending on the identity of the supplier, it is possible that another exemption in Schedule V to the ETA may apply to the supply of the service.
[vii] 3. The proposed amendment to add the following to Part II of Schedule V reads as follows:
7.2. A supply of a service rendered in the practise of the profession of social work where
(a) the service is rendered to an individual within a professional-client relationship between the supplier and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with a physical, emotional, behavioural, or mental disorder or disability of the individual or of another person to whom the individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and
(b) either
i) if the supplier is required to be licensed or otherwise certified to practice the profession of social work in the province in which the service is supplied is so licensed or certified, or
ii) if the supplier is not required to be licensed or otherwise certified to practice that profession in that province, the supplier has the qualifications equivalent to those necessary to be licensed or certified to practice that profession in a province where such a requirement exists.
[viii] 1. The numerator is the Canadian points that remain available for sale calculated as [400 - (80 x 1/3) - (80 x 1/3) + 240 = 587]. In determining the number of Canadian points remaining unsold, one has to take into account that points sold must be considered in light of the extent to which the points entitle a person to use properties in Canada vis-à-vis properties in the rest of the world. When a new property does become available, one would add up the total points issued in respect of Canadian properties, deduct the points sold (to the extent that the points entitle a recipient to the use of property in Canada), and divide by the World points available for sale.
[ix] 2. The denominator is the World points that remain available for sale calculated as (1200 - 80 - 80 + 240) = 1280
[x] * Basic resident revenue is the co-payment noted in Fact 16 payable by the residents for the care and services provided to them by XXXXX.
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