13 September 2000 GST/HST Interpretation 25597[2] - Entitlement to Claim Input Tax Credits

Dear XXXXX:

Thank you for your letter of December 17, 1999 sent to XXXXX of our XXXXX office concerning the claiming of input tax credits by XXXXX in respect of employer expenses incurred by XXXXX (Pension Plan).

Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency.

As you pointed out in your letter, discussions were held back in XXXXX regarding the status of XXXXX Pension Plan. At that time, it was concluded that the Pension Plan did not qualify for the administrative treatment outlined in Technical Information Bulletin B-032R since it is not a single-employer plan.

As you are aware, Bill C-24 proposes a rebate to a trust governed by a multi-employer pension plan in respect of property and services that are acquired or imported or brought into an HST-participating province for consumption, use or supply in relation to the plan. The Bill provides that the term "multi-employer plan" refers to a registered pension plan within the meaning of subsection 248(1) of the Income Tax Act that is a multi-employer plan as defined in subsection 8500(1) of the Income Tax Regulations. It is our understanding that XXXXX Pension Plan is not a multi-employer plan as defined in the proposed amendments and therefore does not qualify for the rebate.

In view of the fact that there are some plans such as XXXXX Pension Plan that are not single-employer plans (therefore cannot apply the position set out in the bulletin), nor multi-employer plans as defined in the proposed amendments, Duncan Jones indicated to you that the bulletin would be reviewed to determine whether our administrative position should be changed. We have now completed our review and we have concluded that we will not be changing our administrative position. We have advised the Department of Finance of this and we have suggested that they consider whether further legislative amendments are necessary.

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
Senior Technical Analyst
Financial Institutions Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate