24 January 2006 GST/HST Ruling 63749 - 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.

Dear XXXXX:

Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to payment of GST on dues from the XXXXX (XXXXX Society). We apologize for the delay in our response.

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

Statement of Facts

We understand that

•   You are member XXXXX of the XXXXX Society.

•   The XXXXX Society has invoiced you for XXXXX.

•   The XXXXX Society has indicated on the invoice that it is a GST/HST registrant, with its GST/HST number being XXXXX.

•   The XXXXX Society has indicated that if you provide them with an exemption certificate it will not bill you for the GST.

•   You are not a person who, pursuant to the Indian Act, is registered as an Indian or is entitled to be registered as an Indian.

Ruling Requested

You would like the CRA to issue you an exemption certificate so that you will not pay GST on your dues from the XXXXX Society.

Ruling Given

The CRA does not issue exemption certificates that exclude individuals from paying GST.

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

In accordance with subsection 165(1) of the ETA every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 7% on the value of the consideration for the supply. Certain persons are entitled to relief from paying the GST/HST, however you do not fall under the definition of one of these persons.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 954-4206.

Yours truly,

Carol A. Gaudet
Charities, Non-profit organizations and Educational Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate

2006/01/16 — RITS 64274 — Proposed Law Section 178.8 of the Excise Tax Act