GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
XXXXX K1A 0L5
September 23, 1998
Dear XXXXX
Thank you for your letter of June 1, 1998, with the attached memorandum, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to real property transactions of the Real Estate Services Sector of XXXXX[.]
Interpretation Requested
You have requested that we review the above-noted memorandum for the purpose of verifying the technical content and to provide advice or comments.
Interpretation Given
We have reviewed the memorandum and as requested we have attached a copy of the memorandum containing revisions that we consider appropriate. Those revisions to the memorandum which required deletion of text are shown in "strikethrough" format and revisions that required addition of text are shown in "bold" format.
With regards to the matter discussed by telephone on September 15, 1998 we wish clarify that, in circumstances where the federal government purchases taxable real property, the federal government is relieved of the requirement to self-assess and is therefore not required to pay the GST/HST to the Receiver General and to report the tax on a GST/HST return. Should you wish further clarification please contact the Government Sectors Unit, Public Service Bodies and Governments Division, GST/HST Rulings and Interpretations Directorate.
The comments in the attached memorandum represent our general views with respect to the subject matter of your memorandum. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided therein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Department with respect to a particular situation.
For your convenience, find enclosed a copy of section 1.4 of Chapter 1 of the GST/HST Memoranda Series.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-8852.
Yours truly,
Daryl J.A. Hooley, CGA
Real Property Unit
Financial Institutions and Real Property Division
GST/HST Rulings and Interpretations Directorate
Attachments
Legislative References: Definitions in 123(1), including "real property", mobile home", "floating home", "sale", "commercial activity", "consideration", "residential complex" and "residential unit".
Small Supplier - subsection 148(1), subsections 221(1) and 221(2), subsection 228(2), and section 6, Part I of Schedule V.
Email this Content