File 11910-5
Ref. ss. 123(1)
Domus 933
XXXXX March 20, 1995
Dear sir:
This refers to the letter of March 1, 1993, from XXXXX to XXXXX of XXXXX , concerning whether XXXXX is a public college for GST purposes, and the subsequent memo by XXXXX to you dated June 17, 1993, concerning the letter. You forwarded the letter and the memo to us for our comments in November, 1993. We regret the delay in responding.
Facts
In his letter to XXXXX indicated that the facts of the case are as follows.
1. XXXXX is a for-profit organization that has as its primary activity the offering of Adult Basic Education and secondary school level courses to students chosen by the National Department of Employment and Immigration (EIC).
2. On successful completion of the courses offered by XXXXX participants are given secondary school diplomas by community colleges or the XXXXX Ministry of Education and Training.
3. XXXXX is applying to become an accredited vocational school pursuant to provincial legislation respecting vocational schools. (We note that XXXXX is not listed as a vocational school registered in XXXXX in 1994 under the Private Vocational Schools Act.)
4. The payments made by XXXXX to XXXXX in respect of the service of teaching provided by XXXXX to the students selected by XXXXX are not consideration for supplies.
Decisions Requested
1. During discussions with Don Dawson on the subject, you requested a decision as to whether we considered XXXXX to be a public college, as well as an explanation as to how we determine what organizations are or are not public colleges.
2. You requested clarification as to whether the supplies at issue are exempted by section 9 of Part III of Schedule V to the Act, a possibility raised in the letter by XXXXX to XXXXX
3. You also requested our comments on the suggestion raised by XXXXX in his review of the letter by XXXXX that XXXXX is only entitled to a rebate at the public college rate in respect of its activities as a public college.
Decision Provided
1. We determine whether a person is a public college on the basis of whether they fit within the definition of "public college" in subsection 123(1) of the ETA. In order to be a public college, a person has to be an organization, rather than a sole proprietorship. They must be operating a college or technical institute, and the college or technical institute must be post-secondary. The college or technical institute must be funded by a government or a municipality in respect of its curriculum, and the primary purpose of the college or technical institute must be to provide programs of instruction in one or more fields of vocational, technical or general education.
Since XXXXX is primarily involved in providing courses at the secondary school level, and since it does not require prospective students to have obtained a secondary school diploma as the normal admission standard for its courses, it cannot be said to operate a post-secondary organization. XXXXX is therefore not a public college as defined in subsection 123(1) of the ETA.
Since XXXXX provides secondary school education for the specific purpose of making people more employable under the Jobs Canada contract, it could be considered an organization that is established and operated primarily to provide students with courses that develop or enhance students' occupational skills, so could be regarded as a vocational school for GST purposes. However, the courses supplied by XXXXX are not exempted by the provisions of section 6 of Part III of Schedule V, since the courses do not lead to accreditations or designations that are recognized by a regulatory body. The courses are not exempted by the provisions of section 8 of Part III, since the courses do not lead to documents that attest to the ability of individuals to practise or perform a trade or vocation.
2. The supplies at issue are exempted by the provisions of section 9 of Part III of Schedule V to the Act. Since the successful completion of the XXXXX program results in the participant receiving a secondary school diploma, the courses can be considered to be courses that are approved for credit by, or that follow a curriculum designated by, a school authority.
3. If XXXXX were a public college, it would be entitled to a rebate of GST pursuant to subsection 259(3) of the ETA in respect of all of its non-creditable tax charged. However, as indicated above, XXXXX is not a public college. Nor is it any other type of selected public service body, or a charity or qualifying non-profit organization, so it would not be entitled to claim a rebate pursuant to subsection 259(3) of the ETA.
If you require any further information concerning this matter, please contact Mr. Don Dawson at 954-4393.
J. A. Venne
Director
Tax Policy - Special Sectors
GST Policy and Legislation
c.c.: J. Houlahan
D. Dawson
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