20 June 1995 GST/HST Interpretation 11846-1 11890-1 - Goods and Services Tax (GST) Status of Payments Made by the

                                                                        Fil : 11846-1(dh)
11890-1
Domus : XXXXX
 XXXXX                                                                                June 20, 1995

Dear XXXXX

We are writing in response to your E-mail dated February 15, 1995 wherein you asked that we review an application ruling that was prepared by your office. The ruling deals with the Goods and Services Tax (GST) status of payments made by the XXXXX We agree with the draft response as provided. However, it is suggested that the reference to "grant" in the first sentence of the second paragraph on page 3 be deleted. This suggestion is based on the Department's position that a transfer payment may be either a grant or consideration but not both. The reference in the draft response implies that a grant may be consideration.

We also confirm that on March 10, 1995 the XXXXX District Office issued an ruling to amend the position presented in their letter dated September 19, 1994.

Should have any further questions please contact the undersigned at (613)-954-3551 or Donna Harding at (613)-952-8531.

Marilyn Viger
Manager - Governmental Sectors
GST Rulings and Interpretations