Case No.: HQR0000388
Dear XXXXX
This is in reply to your letter addressed to XXXXX dated October 24, 1996, concerning XXXXX eligibility to claim public service body (PSB) rebates as a public college for the period October 1, 1995, to April 23, 1996.
This letter confirms the GST application ruling dated October 11, 1995, Case C0913A, XXXXX prepared by the XXXXX, that XXXXX does not qualify as a public college for purposes of the Excise Tax Act. The Department's interpretation of a "public college" is that an organization must be a post-secondary college or post-secondary technical institute that receives funds from a government or municipality to assist in the ongoing provision of educational services to the general public. In other words, money paid to the organization by a government or municipality cannot be to compensate the college or technical institute for training it provides to students who qualify under particular agreements with that government or municipality. The amendment to paragraph (a) of the definition of "public college," which was announced on April 23, 1996, does not in itself eliminate XXXXX eligibility for a rebate for the period September 11, 1995 to April 23, 1996. Rather, this has always been our position which is expressed in policy statement P-186, "Funding for Public Colleges," dated September 11, 1995 and effective January 1, 1991. The amendment to paragraph (a) serves only to clarify our position, as noted in the explanatory notes that accompany the legislation.
Consequently, as XXXXX does not meet the definition of a "public college" under the current or amended definition in subsection 123(1) of the Act, it is not eligible for a rebate under section 259 of the Act. However, it is the Department's policy not to recapture rebates in these situations prior to September 11, 1996, which is the date of policy statement P-186.
Please note that in accordance with GST Memoranda Series Section 1.4, where the Department has erred in the issuance of a ruling, the revocation applies only to those activities or transactions that take place after the date of revocation. Hence, transactions that have transpired prior to the date of revocation will be allowed to follow the treatment outlined in the initial ruling. This explains the rationale for the decision in the October 11, 1995, letter.
With respect to the Department's paying XXXXX rebate claim from XXXXX XXXXX, please note again that the Department's position on this issue is represented by the ruling letter, and not by payment of the rebate.
If you need additional information, please do not hesitate to contact me at (613) 952-6761.
Susan Eastman
Charities, NPOs, and Educational Services
GST/HST Rulings and Interpretations Directorate
| b.c.c.: |
S. Eastman
J. Houlahan
J.A. Venne
B. Ginsberg (Audit, Headquarters)
XXXXX |
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