5 September 1995 GST/HST Interpretation 11864-1, 11849-6 - Whether the is a "Board, Commission or Other Body Established by a Government" for the Purposes of Section 20 of Part VI of Schedule V to the Excise Tax Act (ETA)

                                                                        File: 11864-1(dh)
11849-6/XXXXX
Domus: 539REG

Dear XXXXX

We are writing in response to a memo from XXXXX of your staff wherein he asked whether the XXXXX is a "board, commission or other body established by a government" for the purposes of section 20 of Part VI of Schedule V to the Excise Tax Act (ETA).

Statement of Facts

1) Under the Alcohol Control Act, S.S. 1988-89, c. A-18.01 (ACA) and the Alcohol Control Regulations, c. A-18.01, Reg. 1, O.C. 1094/88 the Liquor Board was generally responsible for the regulation and control of the manufacture and importation of beverage alcohol in XXXXX and the possession, sale and delivery of beverage alcohol by any person other than a licensee. The Liquor Licensing Commission was generally responsible for conducting hearings respecting applications for licences and for granting, revoking and suspending any licence or permit issued under the ACA. XXXXX

2) While we have not been provided with the legislation that originally established the Liquor Board and the Liquor Licensing Commission, both have been continued under the ACA. Therefore it is assumed that both were originally established under provincial legislation.

3) The long title of the ACA is "An Act Respecting the Control of Distribution and the Consumption of Beverage Alcohol in XXXXX

4) The long title of the ACA was changed by section 3 of the Alcohol Control Amendment Act, 1993 to "an Act Respecting the Control of the Distribution and Consumption of Beverage Alcohol and the Regulation of Gaming in XXXXX The short title of the Act is The Alcohol and Gaming Regulation Act. 1993, c. 45, s. 4 (AGRA).

5) Pursuant to subsection 3(1) of AGRA "the Liquor Board is continued as a body corporate to be known as the Liquor and Gaming Authority ..."

6) Pursuant to section 9 of AGRA, the Liquor and Gaming Authority "is responsible for the regulation and control of;

(a) the manufacture of beverage alcohol in XXXXX

(b) the importation of beverage alcohol into XXXXX

(c) the possession, sale and delivery of beverage alcohol in XXXXX by any person other than a person licensed pursuant to Part IV;

(d) lottery schemes in XXXXX 1993, c. 45, s. 6."

7) Pursuant to subsection 12(1) of AGRA, "a branch of the authority to be known as the Liquor and Gaming Licensing Commission is established to exercise the powers set out in this Act." (1993, c. 45, s. 6.)

Information Requested

1) Is the Liquor and Gaming Commission considered to be a "board, commission or other body established by a government" for the purposes of section 20 of Part VI of Schedule V to the ETA?

2) Were the Liquor Board and the Liquor Licensing Commission each considered to be a "board, commission or other body established by a government" for the purposes of section 20 of Part VI of Schedule V to the ETA?

Information Provided

1) The Liquor and Gaming Authority, which operates in a regulatory capacity, was established under the AGRA. Therefore, it is the Department's position that it is a "board, commission or other body established by a government" for the purposes of section 20 of Part VI of Schedule V to the ETA.

2) Both the Liquor Board and the Liquor Licensing Commission were operated in a regulatory capacity and each was continued as a body corporate under the ACA. Therefore, it is the Department's position that each of these bodies was a "board, commission or other body established by a government" for the purposes of section 20 of Part VI of Schedule V to the ETA.

The information provided by the province indicates that the ACA came into force on January 2, 1989 and possibly was in effect until AGRA was issued in 1993. However, the actual coming into force date is not specified in AGRA nor does it provide for the discontinuance of the Liquor Licensing Commission. Therefore, it is suggested that this information be obtained from the province so as to confirm the actual date that the Liquor and Gaming Authority was established and the status of the Liquor Licensing Commission.

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

M. Viger
Governmental Sectors
GST Rulings and Interpretations