23 February 1999 GST/HST Interpretation HQR0001032 - GST/HST General Rebate Application

Dear XXXXX

Thank you for your letter of November 19, 1997, addressed to the XXXXX XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the operations of the XXXXX of the XXXXX[.] As you are aware, your letter was transferred to this office for reply. We apologize for the delay in responding.

In your letter, you stated that under the XXXXX[.] In September 1994, all the land was turned back to the XXXXX except 42 acres. You indicated that this property is still owned and operated by the XXXXX XXXXX[.] It is your understanding that under the terms of the above-referenced agreement, the XXXXX was exempt from all taxation. Several companies who do business with the XXXXX have, however, been including HST on their invoices. For this reason, you have requested a GST Interpretation to clarify this matter.

Interpretation Requested

The XXXXX is afforded relief of GST/HST on its purchase of supplies.

Interpretation Given

Based on the information provided, the XXXXX is afforded relief of GST/HST on its purchase of supplies that are for official use pursuant to the XXXXX[.] The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. 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.

Explanation

The attached XXXXX provides relief of GST/HST on goods, real property or services for use in the operation of XXXXX XXXXX[.] As the XXXXX remains in effect, the XXXXX is entitled to GST/HST relief on its purchases that are for official use.

A certificate signifying the XXXXX entitlement to relief of GST/HST on domestic purchases under the above-mentioned XXXXX may be provided to its suppliers. The certificate should be signed by an authorized representative of the XXXXX state that the supply is for use by XXXXX XXXXX and that it has been or will be paid with funds of the XXXXX[.] Where the XXXXX has paid GST/HST on its purchases, it is entitled to claim a rebate of the tax paid. For your reference, I have enclosed the booklet entitled "GST/HST General Rebate Application." Additional copies may be obtained from our XXXXX[.] Please note that in accordance with section 4 of the XXXXX rebate claims must be made within two years after the purchase or supply.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-7952.

Yours truly,

Lynn F. Renner
Technical Officer
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate

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