File: 11865-20
C.N.: 2408
XXXXX
August 23, 1995
Dear XXXXX
This is further to your discussions with Ken Syer of this office regarding the possibility of your Ministry being able to claim a rebate of the Goods and Services Tax (GST) paid by patients on out-of-province travel for medical treatment and who have been reimbursed by your Ministry under the XXXXX Out Of Province Transportation Subsidies Regulation.
As you are aware, this Department had administratively approved the payment of your existing rebate claim filed with our XXXXX District Office and future claims were to be paid subject to a proposed amendment to section 261 of the Excise Tax Act (ETA) being accepted by the Department of Finance and passed by the House of Commons. Upon being advised of the case including our requested amendment to the ETA, the Department of Finance informed us that they would not consider revising the legislation as proposed.
Further, the assignment of the GST rebate by the taxpayers (the patients) to your Ministry under section 261 cannot be sanctioned as it is not provided for under the ETA or the federal Financial Administration Act and the regulations thereunder.
This is to advise you that your rebate claim, currently on file with the Department relating to out-of-province travel by XXXXX patients who have traveled to out-of-province health care facilities, has been canceled. We regret the length of time this case has been unresolved. We also regret that the result was contrary to that which you were expecting.
We have advised our XXXXX District Office of this decision. If you would like to discuss this matter further, please do not hesitate to contact Enikö Vermes, Manager, Health Care, Goods and Services Unit at (613) 954-5127 or Ken Syer, A/Senior Policy Officer at (613) 952-9590.
Yours truly,
J. A. Venne
Director
Special Sectors
GST Rulings and Interpretations
Policy and Legislation Branch
c.c.: K. Syer
E. Vermes
J. Daman
D. Caron
P. McKinnon
M. Viger XXXXX
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