9 March 1999 GST/HST Ruling HQR0001510 - Application of the GST?HST to Transaction Under Audit

Dear Sirs:

Thank you for your letter of December 24, 1998, addressed to the attention of the undersigned, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to your XXXXX which you offer to non-resident persons, other than individuals, where you request that Revenue Canada review and reconsider its previous GST/HST Application Ruling to you being Case # HQR0001049. We also acknowledge receipt of the letter from your financial advisors XXXXX where they make the same request for reconsideration. This matter has been referred to the undersigned for review and response.

On October 22, 1998, you requested a confirmation of the application of the GST/HST to a transaction under audit. In particular, whether the XXXXX supplied to non-residents, qualifies for zero-rating pursuant to section 18 of Part V of Schedule VI to the Excise Tax Act (the "Act"). Revenue Canada provided its GST/HST Application Ruling to you by letter dated November 5, 1998, signed by Ms. Cheryl R. Leyton, again, this being case number XXXXX[.] There is no need to repeat the facts. They remain as outlined in the Revenue Canada November 5, 1998, application ruling, for the purposes of this letter.

Your facsimile message of October 22, 1998, and letter of December 24, 1998, as well as the October 23, 1997, January 28, 1998, and November 20, 1998, letters from your accountants XXXXX have all been reviewed in detail. In addition, Revenue Canada's November 5, 1998, letter by Ms. Cheryl R. Leyton together with all references and supporting material have been reviewed.

Additional Facts

In addition to the facts as outlined in the Revenue Canada Application Ruling letter of November 5, 1998, which remain for the purposes of this letter, you have now provided the following additional information:

•   XXXXX was founded as a not-for-profit corporation in 1984. Its mission is to promote high standards of professional practice in the areas of training, performance and instruction for the benefit of individuals and organizational consumers through research, definition and measurement of competencies.

•   XXXXX has developed and disseminated a comprehensive list of core competencies referred to as the XXXXX for the profession of adult instructors. The XXXXX were designed for trainers and instructors in order to provide an authoritative listing of competencies considered to be essential for effective training delivery. These standards provide a strong and credible base for developing certification assessments.

•   The XXXXX as been designed to model all 14 of the objective competencies required by the XXXXX Standards.

•   The XXXXX demonstrates, teaches and tests the fundamentals of knowledge and classroom performance as defined by the XXXXX to enable participants to perform a professional career in the field of Adult Instruction. The learning model for all XXXXX workshops is the Presentation, Application, and Feedback process (PAF). XXXXX presents the knowledge and skills, has the learners apply this knowledge and skills, and gives the learners feedback on their performance.

•   The XXXXX includes the content described on pages 6 and 7 in the 1998 XXXXX which schedule has been provided to Revenue Canada.

•   [C]orporation for their XXXXX[.] Specifically, the XXXXX is one of four options by which an individual is able to demonstrate his/her instructional skills for the XXXXX[.]

•   The most important application of the XXXXX is the performance test where participants practice the concepts and skills XXXXX learned in the workshop by delivering three instructional presentations related to training programs given in their own environment. The presentations are observed by XXXXX highly skilled workshop leaders who give constructive oral and written feedback using the XXXXX performance-based checklist.

•   A formal feedback form is provided which summarizes the evaluation of each participant's performance and attests to their skill level and competence against the XXXXX. Participants are evaluated and ranked according to the following scale:

•   Ready to become an excellent instructor, complete certification;

•   Shows Potential to become an excellent instructor;

•   Not recommended for certification at this time.

•   Those participants that have successfully completed the requirements of the XXXXX are awarded a certificate at the end of the XXXXX[.] Those who have not been successful are not awarded a certificate.

•   Your request for zero-rating of the XXXXX pursuant to section 18 of Part V of Schedule VI to the Act is limited to the situations when the supply of this workshop is to non-resident persons, other than individuals, who are not registered under Subdivision d of Division V of Part IX to the Act, although it is individuals who enroll in the workshop and to whom the service is rendered.

Ruling Requested

Whether the XXXXX supplied to non-residents, qualifies for zero-rating pursuant to section 18 of Part V of Schedule VI to the Act.

Ruling Given

Upon careful reconsideration, and subject to all of the facts and information contained both in its November 5, 1998, GST/HST Application Ruling to you, this being case number HQR0001049, and as further outlined above, Revenue Canada does hereby amend and revise its Application Ruling of November 5, 1998, as follows:

The supply of the XXXXX to non-resident persons, other than individuals, who are not registered under Subdivision d of Division V of Part IX to the Act, is zero-rated pursuant to section 18 of Part V of Schedule VI to the Act.

The balance of the November 5, 1998, Ruling remains as provided in the November 5, 1998, letter.

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 ruling provided that none of the above issues is currently under 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 Richard Aronoff at (613) 954-2560.

Yours truly,

Randy Nanner
Manager
Border Issues Unit
General Operations and Border Issues Division
GST/HST Rulings and Interpretations Directorate