4 July 2000 GST/HST Interpretation 31347 - Specified Crown Agents

Dear XXXXX

Thank you for your letter of May 23, 2000 requesting an interpretation regarding the definition of "specified Crown agent".

Interpretation Requested

You have asked us to confirm that a corporation listed in Schedule III of the Financial Administration Act (FAA), or that is a subsidiary corporation listed in any of paragraphs (a) through (e) of section 1 of the Specified Crown Agent (GST/HST) Regulations (Regulations), but that is not itself named in any paragraphs (a) through (d) of section 1 of the Regulations, will only be a "specified Crown agent" for Goods and Services Tax/Harmonized Sales Tax (GST/HST) purposes where it is an agent of the Crown in right of Canada.

Interpretation Given

The term "specified Crown agent" is currently defined in subsection 123(1) of the Excise Tax Act (ETA) to mean a prescribed agent of Her Majesty in right of Canada. Prescribed agents are listed in the Specified Crown Agents (GST/HST)Regulations (Regulations) and include

"(a) the Canadian Broadcasting Corporation;

(b) the Canadian Film Development Corporation;

(c) the Canadian Wheat Board;

(d) the Bank of Canada;

(e) every agent of Her Majesty in right of Canada that is included in Schedule III to the Financial Administration Act; and

(f) every agent of Her Majesty in right of Canada that is a subsidiary of a corporation referred to in any of paragraphs (a) to (e)."

As not all Crown corporations listed in Schedule III to the FAA are agents of Her Majesty, paragraphs (e) and (f) of the Regulations are written specifically to include only those corporations that are agents.

"Specified Crown agents" are "government", pursuant to the definition set out in the ETA, and, unlike other government entities, are required to recover their GST/HST paid by way of input tax credits or rebates in the same manner as other registrants. Due to this treatment, these entities are excluded from certain provisions of the ETA which apply to "government". The term "government" set out in subsection 123(1) of the ETA means "Her Majesty in right of Canada or a Province" and includes all bodies which are agents of Her Majesty for all purposes. Naturally, where an entity is not an agent of Her Majesty, and therefore not a "government", there would be no reason to include it as a prescribed agent under the Regulations in order to exclude it from provisions of the ETA which apply only to "government".

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 Canada Customs and Revenue Agency with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-0370.

Yours truly,

Brent Fleming
Governments Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate