Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 223567
Attention: [Client]
Dear [Client]:
Subject: GST/HST RULING
[…][Whether a Congress is a foreign convention]
Thank you for your letter of [mm/dd, yyyy], concerning whether the above meeting qualifies as a foreign convention for purposes of the goods and services tax/harmonized sales tax (GST/HST). We apologize for the delay in our response.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be as follows:
1.[…] (the Congress) will be held in […][Province A], from [mm/dd] to [mm/dd, yyyy], and will host the latest theories and research from […][the Congress’s field of research].
2. The overall planning of the Congress is organized by […] (the Society) and […].
3. According to the Society’s Constitution dated [yyyy-mm-dd]:
[…]
[…] The purpose of the Society shall be to promote, throughout the world, research and teaching in the disciplines […]
[…]
[…]
[…] Membership shall be open to any individual or organisation subscribing to the purpose of the Society.
[…]
[…][The Governing Board of the Society] shall consist of [#] voting elected members and the other non-voting members. […].
[…][Board members] will serve as officers: President, Vice-President, Secretary and Treasurer.
[…][Board members] shall be elected for a term of […] duration.
[…]
[…][The Governing Board] shall:
- Have responsibility over the affairs of the Society;
- Be responsible that an international congress will be held every […][(frequency)];
- Delegate to an appropriate committee the organization of the international, […] congress;
- […];
- Submit a budget (prepared by the Treasurer and [the Governing Board]) for consideration and action by the Society at the General Assembly;[…];
- In the event of a vacancy in any office, fill the vacancy […][in a specified manner];
- Perform such other duties as may be prescribed by the membership and this constitution.
[…]
[…] The Executive [of the Governing Board] shall be composed of the officers (President, Vice-President, Secretary and Treasurer). They shall have general supervision of the Society between meetings of the Council and oversee the expenditure of [the Congress] funds for the purposes of the Society’s business.
[…]
[…] A General Assembly of the Society will be […][(frequency)], and usually held during the […] international congress of the Society, prior to which time the officers and other [Board members] shall be elected for announcement at the General Assembly. The time and place of the General Assembly of the Society shall be decided by [the Governing Board].
[…] All active members of the Society may attend the General Assembly.
[…]
[…] The international scientific meeting of [the Congress] should be referred to as […]
[…].
4.According to the Society’s website […]:
- […][20% of the Governing Board members] are residents of Canada.
- The local scientific and organizing committee for the Congress is made up of members from the faculties of […][the relevant scientific […] Departments of Province A University].
- The Congress will deliver advances in the […][field of research theme].
5. In your submission, you made the following statements on behalf of the Society:
- The purpose of the Congress is not to provide any of the following:
- to provide any type of amusement, entertainment, or recreation,
- to conduct contests, or games of chance, or
- to transact the business of the convener or attendees in the course of a trade show that is open to the general public, or otherwise than in the course of a trade show.
- The Society is anticipating that [#] people will attend the Congress and it is reasonably expected that at least 90% of the paid admissions will be non-residents as the Society is largely international. Below are the statistics for […][previous years].
- [yyyy] – Virtual Meeting – Total delegates was [#] (6% Canadian, […]: [94% non-residents][…])
- [yyyy] – […][Meeting Held outside Canada] – Total delegates was [#] (8% Canadian, […]: [92% non-residents] […])
- [yyyy] – […][Meeting Held outside Canada] – Total delegates was [#] (7% Canadian, […]: [93% non-residents] […])
- According to the agenda you submitted, the first day of the Congress will have two simultaneous workshops of two hours each, two vendor workshops of one hour, an opening reception and a council and keynote speaker dinner. During the remaining [#] days, there will be [#] keynote speaker addresses […], three poster sessions […], and […][various] periods having […][multiple] simultaneous symposium/oral sessions […]. There will also be a congress banquet, a […] general assembly, an awards and closing ceremony, and an incoming board meeting.
RULING REQUESTED
You would like know if the Congress is a foreign convention?
RULING GIVEN
Based on the facts set out above, we rule that the Congress is a foreign convention.
The sponsor of a convention is defined under subsection 123(1) to mean the person who convenes the convention and supplies admission to it. The sponsor must maintain documents supporting their calculation of the percentage of admissions that are reasonably expected to be supplied to non-residents in order to prove that a convention is a foreign convention, and make these documents available to the Canada Revenue Agency (CRA) on request. Under subsection 286(1), these documents must be kept in Canada unless the sponsor gets permission from the CRA to maintain them outside Canada.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the CRA is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-553-3517. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Russell Vermette
Services and Intangibles Unit
General Operations and Border Issues Division
GST/HST Rulings Directorate
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