GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, Ontario
XXXXX K1A 0L5
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Subject:
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GST/HST APPLICATION RULING - XXXXX
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Dear XXXXX
Thank you for your letter of January 22, 1998, (with attachment) concerning the application of the Goods and Services Tax (GST)Harmonized Sales Tax (HST) to XXXXX
Our understanding of the facts is as follows.
Statement of Facts
1. XXXXX. is incorporated as a not for profit company, without share capital pursuant to XXXXX
2. The objects for which XXXXX is established are set out in XXXXX XXXXX
3. Pursuant to XXXXX of the Memorandum of Association:
"all income and property of the Company shall be applied toward furtherance of objects of the Company, and no portion of such income or property shall be paid or transferred or be made available directly by way of dividend, bonus or otherwise for the benefit of any member or members of the Company, provided, however, that nothing herein set forth shall limit or prevent the Company from reasonable payments in good faith to any member of the company for services actually rendered to the Company or for property actually conveyed to the Company."
4. Pursuant to XXXXX
"if the Company is dissolved or woundup, for any reason, after all liabilities of the Company have been paid all remaining property of the Company shall not be distributed to any member of the Company, but shall be transferred to one or more entities having nonprofit objects that include objects which are the same as or substantially similar to the objects of the Company, or distribute to one or more registered charities."
5. XXXXX is not an individual, estate, trust charity, public institution, municipality or government.
6. The Income Tax Rulings and Interpretations Directorate issued a ruling dated XXXXX qualifies as a nonprofit organization for any year that it operates as such.
Ruling Requested
1. Is XXXXX a nonprofit organization for GST purposes (under the Excise Tax Act)?
Ruling Given
1. Based on the facts set out above, we rule that XXXXX falls within the meaning of "nonprofit organization" as set out in subsection 123(1) of the Excise Tax Act for any reporting period in which it is operated solely for a purpose other than profit.
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 transaction(s) 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, Nonprofit Organizations and Educational Services Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate
| c.c.: |
J.A. Venne
J.M. Place
Jacques Grise, Taxation Rulings |
| Legislative References: |
123(1) |
NCS Subject Code(s) R 1
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