24 August 1998 GST/HST Ruling HQR0001128 - Application of the GST/HST to Fees for Courses and Designations Given by a Regulatory Body

Dear XXXXX

Thank you for your letter of March 27, 1998 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the fees for courses and designations given by the XXXXX[.]

Please note that all legislative references are to the Excise Tax Act (the Act) and Regulations thereunder, unless otherwise specified. This letter does not reflect any legislation regarding the provincial component of the HST which applies in the provinces of Nova Scotia, New Brunswick and Newfoundland.

Statement of Facts

Our understanding of the facts, according to your letter and facsimile of July 16, 1998, and XXXXX facsimile of November 12, 1997, is as follows:

•   XXXXX

•   XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

•   XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

Rulings Given

Provided that the preceding statements constitute a complete and accurate disclosure of all the facts, our rulings are as follows:

•   In respect of section 6 of Part III of Schedule V to the Act, if a course leads to (or is taken to maintain or upgrade) a professional or trade accreditation or designation recognized by a regulatory body in at least one province, the course will be tax exempt in all provinces where the course is offered.

•   Pursuant to section 6 of Part III of Schedule V to the Act, the fees for the courses and examinations in question, XXXXX and XXXXX are exempt from the GST.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST Memoranda Series. 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 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 Paule Labbé, Manager, Educational Services and Indians Unit, at (613) 954-7957.

Yours truly,

Doris Rist
Rulings Officer
Charities, Non-Profit Organizations
GST/HST Rulings and Interpretations Directorate

LOG OF ACTION

980527 I received case in workload.

980528 I called XXXXX to confirm whether or not the XXXXX is a "regulatory body" as per the definition she was provided with in HQR0000566. She will check that out and call me back.

980528 XXXXX saying that XXXXX is unavailable until June 3 to provide her with the necessary information so she will be getting back to me at that time.

980529 XXXXX is registered for GST purposes as division acct. no. XXXXX[.] Their parent acct. is XXXXX of XXXXX whose major activity is regulatory activities. I phoned the XXXXX and spoke with a gentleman there that told me the XXXXX set the standards of practice for the XXXXX and regulated the securities industry throughout XXXXX[.] For this reason I will consider the XXXXX to meet the definition of a "regulatory body" for GST purposes in my ruling.

980529 submitted first draft response for review

980715 I'm with XXXXX who will be faxing me information regarding the XXXXX regulatory body.

980806 submitted draft to M. Place for review.

980811 submitted draft to L. Grannary for review. Draft will be forwarded to Educational Services Unit for further review.

980818 case returned to me. Paul Labbé has reviewed the case and agrees with the result.