10 March 2006 GST/HST Ruling 46083 - XXXXX - Percentage of Government Funding

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 the letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the importation of certain donated works of art XXXXX. XXXXX.

All legislative references are to the Excise Tax Act (ETA) and the regulations therein, unless otherwise specified.

Statement of Facts

The following facts were presented in the letter.

•   XXXXX, resident in Canada, is registered for GST/HST purposes XXXXX.

•   XXXXX intends to donate certain works of art to XXXXX outside Canada. XXXXX to the XXXXX.

•   The works of art consist of items of significant value, specifically paintings and objects of art, which XXXXX will donate to XXXXX.

•   The works of art will be kept outside Canada until they are donated to XXXXX.

•   XXXXX will import the works of art and, for customs purposes, will act as "importer of record".

•   XXXXX.

Ruling Requested

Whether the importation of the works of art donated to XXXXX, as described above, is considered to be a non-taxable importation pursuant to section 4 of Schedule VII to the ETA.

Ruling Given

Based on the facts set out above, we rule that the importation of the works of art donated to XXXXX, as described above, is considered to be a non-taxable importation pursuant to section 4 of Schedule VII to the ETA.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Goods and Services Tax Rulings. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Section 4 of Schedule VII to the ETA provides that the importation by a charity or public institution of goods that have been donated to the charity or public institution is a non-taxable importation.

For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Goods and Services Tax Rulings.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-6743.

Yours truly,

Cheryl R. Leyton
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

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