GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
XXXXX K1A 0L5
XXXXX
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XXXXX
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M. Guerra
Case: HQR0001031
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August 24, 1998
Dear XXXXX
Thank you for your letter of January 12, 1998 with attachments requesting our comments concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the amusement tax applied in the XXXXX XXXXX, XXXXX has passed by-laws imposing a XXXXX amusement tax payable be certain persons attending places of amusement. This tax is generally collected by the persons selling the tickets.
You are of the opinion that the XXXXX does not, itself, impose the amusement tax. It is the City that passes the by-law which imposes the tax. Consequently, it is not a tax imposed under an Act of the legislature of a Province or Parliament, therefore, section 154 of the ETA does not apply and the tax cannot be a prescribed tax according to the Taxes, Duties and Fees (GST) Regulations.
Our Comments
The amusement tax imposed by the XXXXX as authorized by the XXXXX is a prescribed tax for purposes of section 154 of the ETA. The consideration for GST/HST purposes in respect of the supply of a ticket to a place of amusement does not include the amusement tax.
Analysis
Paragraph 3(c) of the Taxes, Duties and Fees (GST) Regulations prescribes, for purposes of section 154 of the ETA,
"a tax in respect of a service or an item of personal property imposed by or under any of the following Acts of the legislature of a province:
(viii) XXXXX
The inclusion of the XXXXX in the Taxes, Duties and Fees (GST) Regulations is sufficient to meet the provisions of paragraph 3(c) of the Taxes, Duties and Fees (GST) Regulations. The amusement tax imposed by the XXXXX is considered to be "imposed by or under" the XXXXX. This is parallel to the proposed amendments announced on XXXXX[.] The technical notes state the reason for the proposed amendment to add the XXXXX is to prescribe the amusement taxes imposed under that legislation. Although the taxes may not necessarily be imposed by the provincial legislation, it is still considered to be imposed under it.
XXXXX
The amusement tax is created by by-law. The existence of the by-law depends on the XXXXX[.] The repeal of the XXXXX would destroy the by-law and the amusement tax. The amusement tax may therefore reasonably be said to be "under" the XXXXX[.]
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9577 or Duncan Jones at (613) 952-9210.
Yours truly,
Marilena Guerra
Rulings Officer
Financial Institutions and Real Property Division
GST/HST Rulings and Interpretations
Directorate
Policy and Legislation Branch
Casework Number HQR0001031
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