File 11835-2 XXXXX )
May 1, 1995
XXXXX
Dear XXXXX :
This is in reply to your letter of July, 1993, wherein you requested a GST interpretation. We regret the delay in responding.
Facts
On the basis of your letter of July 30, 1993, your subsequent letter of April 25, 1994, your Fax of February 17, 1995 and your telephone conversations with Mr. Don Dawson, Lance Dixon and excerpts from the XXXXX of the XXXXX and the XXXXX of the XXXXX , our understanding of the facts of the case are as follows.
1. The XXXXX owns several residences where handicapped individuals reside under the supervision of a manager.
2. The managers do not supply nursing services as none of the managers currently employed are registered nurses, registered nursing assistants, or licensed practical nurses.
3. The managers reside in the residences in order to provide assistance to the handicapped in their daily living by supervising their daily routines, providing counseling, supervising the preparation and organization of meals and providing transportation. The focus of their responsibilities is directed to activities enabling the residents to achieve their maximum level of independence.
4. The managers do not perform domestic services of an ordinary household nature, but rather provide the opportunity and skills to the residents to allow them to perform domestic services.
5. The managers of the residences are not employees. They are independent contractors who enter into agreements with XXXXX to provide XXXXX with their services of managing the residences for a fee. You stated that all such agreements are verbal, rather than written.
6. You indicated that XXXXX receives funding from regional and provincial governments for the operation of these residences, and that the funding is received pursuant to the XXXXX and the XXXXX ".
7. XXXXX is not a government, municipality or organization administering a government or municipal program in respect of homemaker services.
Interpretation Requested
You requested an interpretation on the application of the Goods and Services Tax (GST) to the supplies made by your client.
Section 6 of Part II of Schedule V to the Excise Tax Act (ETA) does not exempt the services at issue, since section 6 only exempts supplies of a nursing service rendered by a registered nurse, a registered nursing assistant or a licensed practical nurse.
However, section 2 of Part II of Schedule V to the ETA exempts the following:
"a supply of an institutional health care service made by the operator of a health care facility to a patient or resident of the facility, but not including a service related to the provision of a surgical or dental service that is performed for cosmetic services and not for medical or reconstructive purposes".
Paragraph 1(c) of Part II of Schedule V to the ETA defines "health care facility" as including:
"a facility, or a part thereof, operated for the purpose of providing residents of the facility who have limited or mental capacity for self-supervision and care with
(i) nursing and personal care under the direction and supervision of qualified medical and nursing staff or other personal and supervisory care (other than domestic services of an ordinary nature) according to the individual requirements of the residents,
(ii) assistance with the activities of daily living, social, recreational and other related services to meet the psycho-social needs of the residents, and
(iii) meals and accommodations".
Based on the information provided, the residences owned by XXXXX where handicapped individuals reside under the supervision of a resident manager/caregiver meet the definition of a "health care facility" pursuant to section 1 of Part II of Schedule V to the ETA..
Section 1 of Part II of Schedule V to the ETA also defines "institutional health care service" to include, "services rendered by persons who receive remuneration therefor from the operator of the facility". Consequently, the remuneration received by the resident managers from XXXXX in respect of services provided to handicapped residents is considered to be an exempt supply pursuant to section 2 of Part II of Schedule V to the ETA.
The GST interpretation that we have provided is based on our current understanding of the Excise Tax Act and regulations thereunder in their present form, and does not take into account the effects of any proposed or future amendments thereto or future changes in interpretation. 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 you have any question regarding this letter, please do not hesitate to contact Ms. Enikö Vermes at (613) 954-5127 or Mr. Lance Dixon at (613) 952-9264. If you require any information concerning other GST matters, please contact our local office at XXXXX
J.A. Venne
Director
Tax Policy - Special Sectors
GST Rulings and Interpretations
c.c.: E. Vermes
J. Houlahan
D. Dawson
L. Dixon
XXXXX
Regional I&S Manager
Email this Content