23 January 2006 Excise Interpretation 60821 - Air Travellers Security Charge Interpretation

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 XXXXX regarding the application of the Air Travellers Security Charge (ATSC) to airline tickets issued by XXXXX to infants under two years of age. I apologize for the delay in responding.

Interpretation Requested

Specifically, XXXXX issues tickets to infants under two years of age, XXXXX, but not assigning a seat to that infant. As the infant is not entitled to occupy a seat, s/he sits on his/her mother or father's lap. Are the sales of these tickets by XXXXX subject to the ATSC?

Interpretation Given

Based on the information provided, XXXXX is not liable for the ATSC when it issues these tickets to infants. It is not required to collect the ATSC on these sales.

XXXXX has issued a ticket to an infant; however, it does not entitle the infant to occupy a seat for a part of the service that includes a chargeable emplanement. As the acquisition of these airline tickets is excluded from the section 2 definition of "chargeable emplanement", XXXXX is not required to collect the ATSC on these sales. However, if XXXXX issues a ticket that entitles an infant to occupy a seat for a part of the service that includes a chargeable emplanement, it is liable for the ATSC.

The imposition of the ATSC has no influence on the application of Canadian airport improvement fees (AIFs). Similarly, the collection of AIFs has no influence on the application of the ATSC. Therefore, it is inappropriate for me to comment on the charging of AIFs at the XXXXX Airport. Questions concerning this topic should be addressed to representatives of the XXXXX Airport.

Disclaimer

The foregoing comments represent our general views with respect to the subject matter of your e-mail. Proposed amendments to the Air Travellers Security Charge Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Canada Revenue Agency with respect to a particular situation.

For your convenience, please find enclosed a copy of section 1.4 of Chapter 1 of the GST/HST Memoranda Series. Should you have any questions or require elaboration on the above matter, feel free to call me anytime at (613) 957-9877.

Yours truly,

Michael Moskovic
Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate

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