Telephone: (613) 954-8585
Fax: (613) 990-1233
XXXXX File: 11660
XXXXX
Dear Mr. XXXXX
Thank you for your letter of November 26, 1992, requesting that a specific project be prescribed as a prescribed activity under section 273 of the Excise Tax Act. We regret the unavoidable delay in responding to your submission.
XXXXX[.] You have requested that the Joint Venture (GST) Regulations be amended to include the operation a XXXXX plant as a prescribed activity for the purposes of section 273 of the Act.
At the present time only two activities are prescribed for the purposes of section 273 of the Act. According to the Joint Venture (GST) Regulations the prescribed activities are
(a) the construction of real property, including feasibility studies, design work, development activities and the tendering of bids, where undertaken in furtherance of a joint venture for the construction of real property; and
(b) the exercise of the rights or privileges, or the performance of the duties or obligations, of ownership of an interest in real property, including related construction or development activities, the purpose of which is to derive revenue from the property by way of sale, lease, licence or similar arrangement, unless the exception in paragraph 3(2) of the Regulations applies.
The Department of Finance, however, proposes to amend the Regulations to include the operation of a plant used to XXXXX as a "prescribed activity" for the purposes of section 273 of the Act. If the Regulations are amended to include this activity the prescription will be effective September 1, 1991.
This interpretation is valid or in effect provided the interpretation or the administrative policy with respect to the Excise Tax Act does not change. Such an interpretation is provided based on our understanding of the proposal made by the Department of Finance to amend the Joint Venture (GST) Regulations. At this time this proposed amendment has not been passed into law. As such, the interpretation may change if the final Regulations differ from our understanding of the proposal made by the Department of Finance to amend the Regulations.
Further, while we trust that our comments are of assistance to you, we would advise that they do not constitute a GST ruling and are, therefore, not binding upon the Department in respect of any particular fact situation.
If any further information is required please contact Patrick Banham at 952-8807 or Wendy Houston at 952-8812.
Yours truly,
H.L. Jones Director
General Tax Policy Goods and Services Tax
c.c.: P. Banham
W. Houston
GTP: XXXXX
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