Telephone #: (613) 954-8585
Fax #: (613) 990-1233
XXXXX File #: 11680-7(glr)
XXXXX HQR0000124
XXXXX s. 179
I refer to XXXXX memorandum of August 7, 1996, regarding the possible application of the drop-shipment provisions in subsection 179(2) and (4) of the Excise Tax Act to supplies made by XXXXX to XXXXX. Reference should also be made to Mr. H.L. Jones' letters dated May 1, 1996 (File #: 11680-7(glr)), and June 6, 1996 (File #: 11680-7(glr)), on the same subject.
As requested by XXXXX, I have reviewed the documentation forwarded to him by XXXXX on July 23, 1996.
The documentation provided by XXXXX is a copy of an XXXXX between XXXXX and XXXXX, as well as copies of eight invoices (five of the invoices relate to the XXXXX submitted, and three invoices don't).
As you are aware, the issue involves the supply of film prints from XXXXX to XXXXX[.] These film prints are then forwarded to Canadian theatre operators for showing. However, the documentation provided by XXXXX relates to a supply between XXXXX and XXXXX (and not XXXXX[).] Therefore, based on the information provided by XXXXX to date, the drop-shipment provisions of subsection 179(4) do not apply to the transactions between XXXXX and XXXXX[.] However, as stated in Mr. Jones' letter of June 6, 1996, the drop-shipment provisions of subsection 179(2) could apply to deem the supplies of the film prints from XXXXX to XXXXX to be deemed to be made outside Canada, and not subject to tax under Division II, if the Canadian theatre operators issue drop-shipment certificates to XXXXX[.] Please contact me at (613) 952-6743 if you require further information.
Garry L. Ryhorchuk
Senior Policy Officer
Border Issues Unit
General Operations and Border Issues Division
GST Rulings and Interpretations
Policy and Legislation Branch
| c.c.: |
R. Nanner
G. Ryhorchuk |
Email this Content