XXXXX
Dear XXXXX
This concerns your letter of June 22, 1993, toXXXXX concerning the GST status of supplies made by XXXXX[.] Your letter states that XXXXX is a certified class K hospital that is funded by the Minister of Health, and that it is therefore entitled to claim rebates at the rate of eighty-three percent. However, the Public Service Body Rebate (GST) Regulations provide a rebate rate of eighty-three percent only to hospital authorities. Section 123 of the Act states, effective June 10, 1993, that an organization or part of an organization can qualify as a hospital authority only if it operates a public hospital and is designated as a hospital authority by the Minister of National Revenue. XXXXX has not been designated as a hospital authority by the Minister. Nor was the hospital it operates certified as a public hospital by the Department of National Health and Welfare as referred to in the definition of "hospital authority" in section 123 as it read prior to June 10, 1993.
Organizations operating hospitals that are listed as class K hospitals by the Province of Ontario are not eligible to be designated as hospital authorities, since Ontario class K hospitals do not provide treatment beds for in-patients, and this is one of the requirements for designation, just as it was one of the requirements for the certification of public hospitals under the previous legislation. It therefore appears that XXXXX is not a hospital authority, and is not entitled to the rebate rate of eighty-three percent.
If XXXXX is a charity or a substantially funded non-profit organization, it is entitled to a rebate of fifty percent of its non-creditable tax charged. If XXXXX is a non-profit organization that is not substantially funded, it is not entitled to claim rebates.
You may wish to amend your letter in light of these comments.
We hope that the information provided has been of assistance. If you require any further information concerning this matter, please contact Mr. Don Dawson at (613) 954-4393 here in Ottawa.
J.A. Venne
Director
Tax Policy - Special Sectors
Policy and Legislation
Excise/GST
| c.c.: |
J.A. Venne
J. Houlahan
D. Dawson |
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