23 October 2000 GST/HST Interpretation 26741 - Application of the GST/HST to Registration Fees for Summer Camps

This is in reply to Shashi Fernando's request of November 22, 1999, made on your behalf, concerning the application of the Goods and Services Tax (GST) to the registration fees paid to the XXXXX that are subsidized in part by the camp.

In your letter, you ask us to confirm whether you are correct in concluding that subparagraph 1(f)(ii) of Part V.[1] of Schedule V of the Excise Tax Act is not applicable in the present situation; that is, where registration fees are subsidized in part by the XXXXX for some children whose parents cannot afford the full registration fees. You also request that we confirm that the supply of registration in a summer camp is not considered to be a supply of a service of providing care, supervision and a place of residence to children, as referred to in section 2 of Part IV of Schedule V of the ETA.

We believe that the XXXXX is not providing services primarily to individuals who are underprivileged. The XXXXX is, simply put, a summer camp for all children, with only a small percentage of campers' parents benefiting from some financial assistance. It is not a camp aimed at underprivileged or disabled children. The fact that some financial assistance is provided to the parents of some campers, in the form of a "subsidy program", does not alter the nature of the camp and the services it provides to all of its campers such as swimming, boating, archery, etc.

In conclusion, we agree with you that subparagraph 1(f)(ii) cannot be applied to the "camp subsidy program" alone. It has always been our position that it is the camp as a whole that must be examined. Since it is apparent that subparagraph 1(f)(ii) is also not applicable, the preamble to paragraph 1(f) applies with the result that the charity exemption of section 1, Part V.[1] of Schedule V does not apply to the camps described.

As for section 2 of Part IV of Schedule V of the ETA, we agree that the supply of a summer camp is not a supply of a service of providing care, supervision and a place of residence to children. Section 2 clearly deals with the supply of a service of providing care, supervision and a place of residence to children in an establishment operated by the supplier for the purpose of providing such service. Although the XXXXX may provide care, supervision and a temporary place of residence to its campers, its primary purpose, based on the facts, is to provide summer camp activities, involving sports, crafts and other recreational activities.

We trust our comments will assist you. If you have any questions or concerns, please contact me at 954-4206.