22 October 1998 GST/HST Ruling HQR0001094 - GST Registration

                                                                        GST/HST Rulings and Interpretations
 Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, Ontario

                                                                        Reg.: XXXXX

Dear XXXXX

Thank you for your letter of November 20, 1997 (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transactions described below.

All legislative references are to the Excise Tax Act (the Act) and Regulations thereunder, unless otherwise specified. Please note that on April 1, 1997, the provincial sales tax (PST) in three participating provinces, Nova Scotia, New Brunswick, and Newfoundland was unified with the GST to create the HST. The HST, at a rate of 15%, replaces both PST and GST on supplies that are made (or deemed to be made) in the participating provinces and applies to the same base of goods and services as the GST. This letter does not reflect any legislation regarding the rebate of the provincial component of the HST. Please contact this office if you require information concerning this topic.

Statement of Facts

Our understanding of the facts from your letter and enclosed attachments XXXXX is as follows:

•   XXXXX is registered for GST purposes under account number XXXXX[.] It qualifies as a non-profit organization for GST/HST purposes.

•   XXXXX holds annual meetings which offer a forum for oral presentation of ongoing XXXXX[.]

•   The annual meeting rotates to various Canadian cities based on proposals received from local XXXXX, many of which are formally associated with XXXXX[.]

•   Most of the annual meetings have been jointly sponsored by XXXXX and the XXXXX[.] Recently, XXXXX have also participated as well as XXXXX[.]

•   The formal body responsible for organizing each meeting is XXXXX the XXXXX (OC) XXXXX[.]

•   The OC XXXXX is created independently from XXXXX and XXXXX and assembled in accordance with XXXXX it is not established or created by the governing documents of the sponsoring associations.

•   Barring exceptional circumstances (co-sponsorship of annual meeting by another large organization), XXXXX are appointed by, and act as representatives of, XXXXX respectively. The remainder of XXXXX members are independent (not common with the sponsoring associations) and are selected by XXXXX[.]

•   XXXXX responsibility is to provide advice and to approve XXXXX the OC's plans and budgets in order to ensure the success of each meeting.

•   The OC XXXXX has its own budget and the day-to-day activities of each OC XXXXX are autonomous and independent of the sponsoring organizations.

•   The XXXXX able to contract in its own name in respect of the annual meeting. XXXXX acquires the facilities where the meeting is to be held. It leases the property, but the sponsoring associations are responsible for insuring the facility.

•   The fiscal year of XXXXX is different from the sponsoring associations.

•   XXXXX can provide refundable 'seed' money to XXXXX up-front to assist in covering expenses as well as costs related to publicity, assistance with exhibits, and printing material for circulation. The seed money is paid back to the sponsoring associations after the meeting.

•   The Finance Committee of XXXXX is to approve and pay invoices initialed by XXXXX is charged with balancing the day's take, banking, and overseeing the general ticket sales, refunding and cashiering procedures.

•   After each meeting, the OC must have an independent audited financial statement completed. After all expenses have been paid, net surpluses from a given meeting are shared as follows: the OC x receives XXXXX on receipt of an acceptable proposal, XXXXX of the surplus is divided, three parts paid to XXXXX and one part paid to XXXXX[.]

•   XXXXX retains all copies of field and guidebooks not sold during the meeting and any subsequent sales revenues remain with XXXXX[.]

•   Refunds for "no-shows" are at the discretion of XXXXX however, it is suggested that amounts related to fixed costs (example: bus costs) proportionate to number of no shows should be retained from their registration fees.

•   In the event of a loss being incurred after a particular meeting, the responsibility rests with parent associations XXXXX to reimburse the XXXXX for the loss or to pay the outstanding expenses.

•   XXXXX[.]

•   Because budgeting and the running of the meetings has been organized by a different body in each city, and because finances are handled separately, each xx has, until recently, registered independently for GST/HST purposes.

Ruling Requested

Is the XXXXX eligible to register for GST/HST purposes as a separately identifiable entity from XXXXX or any other sponsoring association XXXXX[.]

Ruling Given

It is the Department's position that for GST/HST purposes XXXXX OC is eligible to apply for registration as an entity (i.e. a separate person) separate from XXXXX or any other sponsoring association.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruing 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 Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transactions for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-0420.

Yours truly,

Lorrie Grannary
Charities and Non-Profit Organizations
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate

c.c.:      N. Staple
J.M. Place
L. Grannary
XXXXX