19 February 2008 GST/HST Interpretation 100369 - Foreign Convention and Tour Incentive Program

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 with respect to form GST111 – Schedule 1 – Financial Institution GST/HST Annual Information Schedule (AIS).

We would like to thank you for providing your comments with respect to the AIS. Your comments were considered in the development of guide RC4419, Financial Institution GST/HST Annual Information Schedule (the guide), which is currently being finalized and will be released shortly. We would like to provide the following clarification in response to some of your comments.

The guide will provide line-by-line instructions, additional clarification and examples. References to additional publications will also be included in the guide, where appropriate, to clarify what is required on the AIS. For certain lines, a financial institution will be able to use amounts reported for income tax purposes. The guide will provide explanations as to when this is possible.

 We have clarified in the guide what is required in respect of the use of estimates and would like to provide you with further clarification. A financial institution will be able to use estimates on certain lines of the AIS when the actual amounts are not reasonably ascertainable. A financial institution will have to use their best efforts to provide the most accurate information possible.It is recognized that where estimates are used certain totals may include estimated amounts.

To illustrate, a financial institution may provide an actual amount on line 060 and provide an estimated amount on line 061.

line 060 = XXXXX and is not an estimated amount

line 061 = XXXXX and is an estimated amount

line 062 = XXXXX(Total of line 060 and 061)

In this example a financial institution would not be able to report on line 062 an amount other than XXXXX even if that amount includes an estimated amount on line 061.

On lines 060 and 061 respectively of the AIS a financial institution will have to enter the total amount of exempt and zero-rated supplies of financial services made during the year. A financial institution will use revenues reported for income tax purposes that are attributable to either its exempt or zero-rated supplies of financial services.

On line 160 of the AIS a financial institution will have to enter the total amount of exempt and zero-rated financial services purchased during the fiscal year. This amount should be based on costs reported for income tax purposes that are attributable to the financial institution's purchases of exempt and zero-rated supplies of financial services. Purchases of supplies that are deemed to be financial services as a result of an election under section 150 should be included on line 160.

On line 173 of the AIS a financial institution will have to enter the total amount of all purchases made during the fiscal year, other than financial services, that were exempt, zero-rated and non-taxable. For example, a financial institution would include on this line purchases of exempt supplies of building permits from a municipality, zero-rated supplies of international flights, and non-taxable imported supplies.

These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the Canada Revenue Agency with respect to a particular situation.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9248 or Dawn Weisberg at 613-952-9210.

Yours truly,

Ivan Bastasic
Director
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

2008/02/14 — RITS 100388 — XXXXX Shake XXXXX