February 16, 1995
XXXXX
11845-1(PDL)
CN338
This is further to your telephone conversation of February 9, 1995 with Pamela Lafrance of my staff regarding a Notice of Decision issued to the above mentioned company.
I would like to confirm that following a recent review of the administrative policy under subparagraph 1(e)(iv) of the Schedule to the Agriculture and Fishing Property (GST) Regulations, automatic bale wagons that lift bales and places the bales on a stationary or automated carrier bed are now provided a zero-rated GST status when supplied by way of sale. Traditional pull-type wagons remain taxable at 7%.
In view of this policy, sales of automatic bale wagons, as noted above, are zero-rated. I recommend that the audit assessment raised against XXXXX be adjusted accordingly.
You may contact Enikö Vermes, A/Manager, Goods & Health Care Services at (613) 954-5127 or Pamela Lafrance, Policy Officer, Goods at (613) 957-9152 if additional information is required ragarding this matter.
Yours truly
J. A. Venne
Director
Tax Policy - Special Sectors
GST Policy & Legislation
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