30 March 2001 GST/HST Ruling 33954 - Application of the GST/HST to Occupational Therapy Services Supplied by a Corporation

Dear Sir:

Thank you for your letter of December 14, 2000, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supplies of occupational therapy services by XXXXX[.]

Statement of Facts

Our understanding of the facts is as follows:

1. XXXXX is a corporation that offers medical management, occupational therapy, vocational management, and employment services.

2. The occupational therapy services supplied by XXXXX are performed by occupational therapists who are employees of XXXXX. These services are rendered to individuals and are paid for by a private insurance company. The contract for these services is between XXXXX and a particular insurance company.

3. The Ontario Health Insurance Plan does not pay for the services of occupational therapy. Individuals must pay for these services and request reimbursement from their private health insurance plans.

Ruling Requested

The occupational therapy services supplied by XXXXX to private insurance companies or to individuals are taxable supplies for purposes of the Excise Tax Act (the "ETA").

Ruling Given

Based on the facts set out above, we rule that the occupational therapy services supplied by XXXXX to private insurance companies or to individuals are taxable supplies for purposes of the ETA and are subject to the GST at the rate of 7%.

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 audit, objection, or appeal; that there are no relevant changes in the future to the ETA, or to our interpretative policy; and that you have fully described all necessary facts and transactions 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 me at (613) 952-9592.

Yours truly,

Michel Guay
Municipalities and Health Care Services Unit
Public Service Bodies & Governments Division
Excise and GST/HST Rulings Directorate