Dear sir:
This is in response to your letter of April 5, 1996, to XXXXX of the XXXXX Tax Services Office, concerning a decision by our XXXXX Tax Services Office on the GST status of parking spaces used by the owners of condominiums. We regret the delay in responding.
We have reviewed your letter, and the responses provided to you by our XXXXX Tax Services Office. We find that we are in agreement with their comments to date, as outlined in their letters of June 12, 1995, and April 2, 1996.
Briefly, the parking spaces are not residential condominium units, residential complexes, buildings containing residential units, land or sites in residential trailer parks. Therefore, sections 5 through 7 of Part I of Schedule V to the Excise Tax Act (ETA) cannot apply.
Sections 8 and 8.1 of Part I do not apply, because the parking spaces are not part of the condominium complex in question. They are in another building that has a separate legal description. We disagree with your assertion that these sections can apply regardless of the location of the parking spaces, since the exempting provisions clearly specify the locale as being in the condominium complex.
In conclusion, in the absence of any exempting provisions, the supply of parking spaces by XXXXX to XXXXX is taxable at a rate of seven percent.
You indicated that you wish to appeal the Department's decision. There is no formal process for appealing a Departmental interpretation or ruling. The appeal mechanism applies only in respect of an audit assessment. If the supplies of parking spaces at issue become the subject of an audit assessment, our XXXXX Tax Services employees will provide you with the necessary information concerning appeals.
If you require any further information concerning this letter, please contact Mr. Don Dawson at (613) 952-9211. If you require any other GST information, please contact your local tax services office at (604) 775-5300.
J.A. Venne
Director
Special Sectors
GST Rulings and Interpretations
| c.c.: |
J. Bain
D. Dawson
XXXXX |
File #11950-1
Ref. s.273
(DD) Document #41
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