9 November 2006 GST/HST Ruling 79926 - Tax status of XXXXX

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.

XXXXXXXXXX

Dear XXXXX:

I am writing further to your letter XXXXX concerning changes to the operations of the XXXXX (the Hospital). You wish to know if these changes affect the Hospital's designation as a hospital authority for purposes of the Excise Tax Act (ETA). XXXXX.

XXXXX.

The Hospital has been designated as a hospital authority for purposes of the ETA effective XXXXX.

"Hospital authority" is defined in subsection 123(1) of the ETA as an organization that operates a public hospital and that is designated by the Minister of National Revenue to be a hospital authority for the purposes of the ETA.

To qualify for designation and to continue to be designated as a hospital authority, an organization must operate a public hospital that meets each of the following administrative criteria:

1) it is recognized as a public hospital by the government of the province in which it is located;

2) it is established and operated otherwise than for profit;

3) it is operated for the medical or surgical treatment of the sick or injured; and

4) it provides and maintains in-patient beds and services.

A review of the information and documentation provided in your letter and in subsequent facsimile messages indicates that the Hospital acquired certain assets and liabilities with the integration of XXXXX into the Hospital's operations. While the Hospital assumed new responsibilities, it did not amalgamate with any other entities since the effective date of its designation as a hospital authority XXXXX. The Hospital is the same person that was previously designated and continues to meet the criteria for designation as a hospital authority. Accordingly, there is no change to the Hospital's designation as a hospital authority for purposes of the ETA and it remains eligible to apply for rebates available to such organizations.

If there are any further changes to the Hospital's operations or structure, this office should be advised to determine if these changes will affect its status as a hospital authority.

XXXXX.

Yours truly,

Danielle Laflèche
Director
Public Service Bodies & Government Division
Excise and GST/HST Rulings Directorate

2006/10/03 — RITS 80092 — [Application of the GST/HST Rebate for a Multi-employer Plan (MEPP)]