April 16, 1997
11640-2(RMcK)
XXXXX
Dear XXXXX
This refers to your facsimile of April 11, 1997 concerning the services to be provided by you to XXXXX in the recruitment XXXXX of teachers for XXXXX schools.
Facts
Our understanding of the facts is as follows:
1. XXXXX is an unregistered non-resident for purposes of Part IX (the Goods and Services Tax) of the Excise Tax Act (the Act).
II. You have been engaged to provide the following services to XXXXX
1. Advertise on behalf of XXXXX for teachers within and beyond XXXXX if necessary as and when required in consultation with XXXXX
2. Receipt all curriculum vitae received.
3. Screen all written applications.
4. Establish a database of all personnel.
5. Interview all prospective applicants in person.
6. Verify all applicants interviewed with a minimum of two telephone referee checks.
7. Arrange for all applicants to undergo a police check from their province.
8. Ensure all documentation for XXXXX and work permits are fully completed and sent to the appropriate institutions.
9. Match appropriate personnel to XXXXX vacancies.
10. Contact each teacher advising him/her of the school you have matched him/her to and ascertain availability. Advise that a possible job offer will be forthcoming if the principal approves and that acceptance needs to be in writing to the school on receipt of letter of appointment from the school.
11. Contact the principal of each school in XXXXX with a vacancy and offer appropriate person, advising him/her of all details of said person. Advise principal that the letter of appointment needs to be faxed to you XXXXX Instruct that included in this must be the starting date, the positions the time and conditions of employment.
On completion of the successful matches, advise XXXXX XXXXX of the outcomes.
12. Arrange for presentation sessions to be held in XXXXX for prospective teachers traveling to XXXXX, as well as future interested teachers, when required.
13. Throughout the process liaise with XXXXX[.]
14. Continue to liaise with teachers stored on the database for forth coming possible appointments.
15. For these services and on successful placement of each teacher arriving in XXXXX will pay you XXXXX per teacher on the presentation of an invoice.
16. All advertising and seminar presentation costs will be met by XXXXX on the presentation of invoices, if not paid directly by XXXXX.
Ruling Requested
Are the services provided to XXXXX in the recruitment of teachers XXXXX XXXXX for XXXXX zero-rated for purposes of the GST.
Ruling Given
Based on the facts set out above, we rule that the services provided to XXXXX are zero-rated under Section 7 of Part V of Schedule VI of the Act.
This ruling is subject to the general limitations and qualifications outlined in the GST Memoranda Series (1.4). We are bound by this ruling provided that none of the above issues is currently under audit, objection or appeal, that there are no relevant changes in the future to the Act, and that you have fully described all necessary facts and transactions for which you requested a ruling.
I have attached for your information a guide dealing with General Information for GST Registrants. Should you require further information about the GST, please contact XXXXX[.]
Roy McKain
Senior Tax Policy Officer
Border Issues Unit
General Operations and Border Issues Division
GST Rulings and Interpretations Directorate
Policy and Legislation Branch
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