GST/HST Ruling

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Direction de l'accise et des décisions de la TPS/TVH
Place de Ville, Tour A, 15e étage
320, rue Queen
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Numéro de dossier: 105124

Le 22 mai 2008

Objet :

_GST/HST Ruling
Valeur de l'importation temporaire d'un aéronef loué

XXXXX,

Merci pour votre télécopie XXXXX, dans laquelle vous demandez l'autorisation d'un allégement partiel de la taxe sur les produits et services (TPS)/taxe de vente harmonisée (TVH), relativement à l'importation d'un aéronef loué.

Nous comprenons que :

• XXXXX (le " preneur ") a conclu une entente pour louer l'aéronef suivant de XXXXX (le " bailleur "), un non-résident avec qui le preneur n'a aucun lien de dépendance.

XXXXX

• Le contrat de location commence le XXXXX et se termine le XXXXX.

• L'aéronef sera importé à XXXXX.

• Au terme d'un bail conclu avec le bailleur, le preneur ne doit pas détenir l'aéronef au Canada pendant plus de 24 mois.

Compte tenu de l'information fournie ci-dessus, nous accordons, par la présente, l'autorisation de déterminer la valeur de l'aéronef importé en vertu du paragraphe 215(2) de la Loi sur la taxe d'accise et de l'article 14 du Règlement sur la valeur des importations (TPS/TVH). Cette valeur est déterminée en calculant 1/60 de la valeur en douane de l'aéronef pour chaque mois ou partie de mois qu'il reste au Canada, en y ajoutant les droits à payer relativement à l'aéronef. La présente autorisation expire le XXXXX. Toute demande de prolongation de la période d'autorisation doit être présentée à notre bureau pour approbation avant la date d'expiration.

Pour avoir droit à l'allégement partiel en vertu de l'article 14 du Règlement sur la valeur des importations (TPS/TVH), le moyen de transport importé doit être exporté au plus tard au premier en date des jours suivants : le jour qui suit de 24 mois le jour de l'importation du moyen de transport ou le jour où il est mis fin au bail. De plus, si le moyen de transport est importé plus d'une fois, le nombre cumulatif dans les périodes tout au long desquelles le preneur détient le moyen de transport au Canada aux termes d'un bail conclu avec le bailleur ne doit pas dépasser 24 mois.

L'importateur est tenu de satisfaire aux exigences des douanes, énoncées dans le mémorandum des douanes D8-1-1, Règlement sur l'importation temporaire de marchandises (Numéro tarifiaire 9993.00.00), relativement au traitement et au contrôle des documents d'importation temporaires ainsi que des documents et des procédures d'exportation.

Une copie de la présente a été envoyée à l'Agence des services frontaliers du Canada à XXXXX. Veuillez communiquer avec cet agent ou cette agente avant l'importation de l'aéronef pour obtenir des renseignements supplémentaires concernant les procédures d'importation et les prescriptions relatives à l'exportation.

Pour toute information supplémentaire relativement aux points discutés dans cette lettre, veuillez communiquer avec moi au numéro suivant: (613) 952-8530. Si vous avez d'autres questions portant sur l'interprétation ou l'application de la TPS/TVH, veuillez communiquer avec un agent au 1-800 959-8296.

Veuillez agréer, XXXXX, l'expression de mes sentiments distingués.

Carolle Mercier

Unité des Questions frontalières

Division des opérations générales et questions frontalières

Direction de l'accise et des décisions de la TPS/TVH

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Direction de l'accise et des décisions de la TPS/TVH
Place de Ville, Tour A, 15e étage
320, rue Queen
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Numéro de dossier: 105793
Numéro d'entreprise: XXXXX

Le 11 juin 2008

Objet :

_GST/HST Ruling
Valeur de l'importation temporaire d'un aéronef loué

Monsieur XXXXX,

Merci pour votre XXXXX, dans laquelle vous demandez l'autorisation d'un allégement partiel de la taxe sur les produits et services (TPS)/taxe de vente harmonisée (TVH), relativement à l'importation d'un aéronef loué.

Nous comprenons que :

• XXXXX (le " preneur ") a conclu une entente pour louer l'aéronef suivant de XXXXX. (le " bailleur "), un non-résident avec qui le preneur n'a aucun lien de dépendance.

Type d'aéronef

Numéro du modèle

Numéro de série

Immatriculation

XXXXX

XXXXX

XXXXX

XXXXX

• Le contrat de location commence le XXXXX et se termine le XXXXX.

• L'aéronef sera importé XXXXX.

• Au terme d'un bail conclu avec le bailleur, le preneur ne doit pas détenir l'aéronef au Canada pendant plus de 24 mois.

Compte tenu de l'information fournie ci-dessus, nous accordons, par la présente, l'autorisation de déterminer la valeur de l'aéronef importé en vertu du paragraphe 215(2) de la Loi sur la taxe d'accise et de l'article 14 du Règlement sur la valeur des importations (TPS/TVH). Cette valeur est déterminée en calculant 1/60 de la valeur en douane de l'aéronef pour chaque mois ou partie de mois qu'il reste au Canada, en y ajoutant les droits à payer relativement à l'aéronef. La présente autorisation expire le XXXXX. Toute demande de prolongation de la période d'autorisation doit être présentée à notre bureau pour approbation avant la date d'expiration.

Pour avoir droit à l'allégement partiel en vertu de l'article 14 du Règlement sur la valeur des importations (TPS/TVH), le moyen de transport importé doit être exporté au plus tard au premier en date des jours suivants : le jour qui suit de 24 mois le jour de l'importation du moyen de transport ou le jour où il est mis fin au bail. De plus, si le moyen de transport est importé plus d'une fois, le nombre cumulatif dans les périodes tout au long desquelles le preneur détient le moyen de transport au Canada aux termes d'un bail conclu avec le bailleur ne doit pas dépasser 24 mois.

L'importateur est tenu de satisfaire aux exigences des douanes, énoncées dans le mémorandum des douanes D8-1-1, Règlement sur l'importation temporaire de marchandises (Numéro tarifiaire 9993.00.00), relativement au traitement et au contrôle des documents d'importation temporaires ainsi que des documents et des procédures d'exportation.

Une copie de la présente a été envoyée à l'Agence des services frontaliers du Canada à XXXXX. Veuillez communiquer avec cet agent ou cette agente avant l'importation de l'aéronef pour obtenir des renseignements supplémentaires concernant les procédures d'importation et les prescriptions relatives à l'exportation.

Pour toute information supplémentaire relativement aux points discutés dans cette lettre, veuillez communiquer avec moi au numéro suivant: (613) 952-8530. Si vous avez d'autres questions portant sur l'interprétation ou l'application de la TPS/TVH, veuillez communiquer avec un agent au 1-800 959-8296.

Veuillez agréer, Monsieur, Madame, l'expression de mes sentiments distingués.

Carolle Mercier
Unité des Questions Frontalières
Division des opérations générales et des questions frontalières
Direction de l'accise et des décisions de la TPS/TVH

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 104339

May 9, 2008

Subject:

GST/HST RULING
City of XXXXX Accommodation Tax

Dear XXXXX:

Thank you for your XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the accommodation tax XXXXX imposed by the City of XXXXX.

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Statement of Facts

We understand the following:

1. XXXXX.

2. XXXXX.

3. On XXXXX, City Council adopted XXXXX, to impose a XXXXX% tax on accommodations for periods of XXXXX nights or less (referred to as "short-term accommodation") effective XXXXX. There are certain exceptions to the application of the tax imposed via the XXXXX. The accommodation tax may also be referred to as the XXXXX. XXXXX.

4. XXXXX.

5. The City has requested of the Province of XXXXX that the accommodation tax not be subject to the provincial retail sales tax. A XXXXX states the provincial government will amend XXXXX accordingly. The provincial retail sales tax will continue to apply to accommodations, but the accommodation tax will not be part of the retail sales tax base.

Ruling Requested

You would like to know whether the accommodation tax imposed via XXXXX, effective XXXXX, of the City of XXXXX under the authority of XXXXX

(a) is a "provincial levy" for purposes of section 154 of the ETA, and

(b) if the accommodation tax is a provincial levy, is it a "prescribed provincial levy" enumerated in the Taxes, Duties and Fees (GST/HST) Regulations for purposes of section 154 of the ETA so as to be excluded from consideration for GST purposes?

Ruling Given

Based on the facts set out above, we rule that the accommodation tax imposed via XXXXX, effective XXXXX, of the City of XXXXX under the authority of XXXXX

(a) is a "provincial levy" for purposes of section 154 of the ETA, and

(b) is not a "prescribed provincial levy" enumerated in the Taxes, Duties and Fees (GST/HST) Regulations for purposes of section 154 of the ETA to be excluded from consideration for GST purposes - i.e. the accommodation tax is part of the consideration for the supply of the accommodation upon which GST is calculated.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Paragraphs 154(2)(b) and 154(2)(c) of the ETA outline the requirements for including provincial levies in the consideration and state that the consideration for a supply of property or a service includes

(b) any provincial levy that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the consumption or use of the property or service, other than a prescribed provincial levy that is payable by the recipient; and

(c) any other amount that is collectible by the supplier under an Act of the legislature of a province and that is equal to, or is collectible on account of or in lieu of, a provincial levy, except where the amount is payable by the recipient and the provincial levy is a prescribed provincial levy.

The term "provincial levy" is defined in subsection 154(1) of the ETA as "a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply, consumption or use of property or a service." Provincial levies that are prescribed for purposes of section 154 of the ETA are found in the Taxes, Duties and Fees (GST/HST) Regulations (the "Regulations").

The accommodation tax will be levied via a by-law under the authority of a provincial statute, namely the XXXXX, which grants the City (and other municipalities) the right to impose its own taxes subject to the conditions therein. The accommodation tax will be levied pursuant to a by-law of the City under the authority granted to it by the provincial statute.

Furthermore, the accommodation tax cannot be excluded from the requirements for section 154 of the ETA under the Regulations because only certain levies imposed under the provincial Acts listed in the Regulations are prescribed. In the case of XXXXX, only certain levies imposed under XXXXX, XXXXX, XXXXX, and The XXXXX referred to in the Regulations are prescribed provincial levies. Consequently, the accommodation tax will not meet the criteria necessary under any of the paragraphs of section 3 of the Regulations.

Paragraph 3(a) of the Regulations

A tax, duty or fee in respect of a transfer of real property is prescribed under the Regulations for purposes of section 154 of the ETA where it is imposed by or under an Act listed in paragraph 3(a) of the Regulations. A prescribed tax, duty or fee under paragraph 3(a) of the Regulations is a tax, duty or fee, in the case of XXXXX, that is imposed by or under XXXXX.

With respect to the accommodation tax, the accommodation tax will not meet the requirements of paragraph 3(a) of the Regulations. The accommodation tax will be imposed under a different Act via a by-law of the City under the authority of XXXXX.

Paragraph 3(b) of the Regulations

A tax can also be prescribed for purposes of section 154 where all the requirements of paragraph 3(b) of the Regulations are met. A tax, in the case of XXXXX, imposed under XXXXX of XXXXX, is a prescribed tax if it meets the conditions of paragraph 3(b) of the Regulations.

With respect to the accommodation tax, the accommodation tax will not meet the requirements of paragraph 3(b) of the Regulations. The accommodation tax will be imposed under XXXXX City under the authority of XXXXX.

Paragraph 3(c) of the Regulations

Furthermore, XXXXX, is not an Act specifically listed in paragraph 3(c). Pursuant to paragraph 3(c) of the Regulations, a tax is prescribed under the Regulations for purposes of section 154 if it is a tax in respect of a service or an item of personal property imposed by or under specified Acts listed therein and meets additional conditions of paragraph 3(c) of the Regulations.

Specified taxes of XXXXX are those imposed in XXXXX, XXXXX, and XXXXX. Additional conditions to meet would include that no tax in respect of the property or service would be payable under XXXXX. In this case, the accommodation tax is in addition to a tax imposed under XXXXX.

Summary

The accommodation tax is levied via a municipal by-law under the authority of a provincial statute, namely XXXXX, that grants the City the right to impose its own taxes subject to the conditions therein. Accordingly, the accommodation tax imposed via the by-law under the authority of XXXXX is part of the consideration for GST purposes for the supply of the short-term accommodation. Generally, the supply of short-term accommodation is a taxable supply; the value of consideration upon which GST applies and is calculated is increased accordingly by the value of the accommodation tax.

Please be advised that a request for exclusion of the accommodation tax from the GST should be sent to the Department of Finance.

If you require clarification with respect to any of the issues discussed in this letter, please call me at 613-952-8811. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Wm Parker
Specialty Tax Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 14th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX

Case Number: 104658

September 10, 2008

Subject:

GST/HST RULING
Purchase of Real Property

Dear XXXXX:

Thank you for your letter of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the purchase of real property by the XXXXX (the Church).

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified. As the real property is located in a non-participating province, no further references will be made to the HST.

Statement of Facts

We understand that the Church is a registered charity for income tax purposes. The Church is not registered for GST/HST purposes. The Church recently purchased real property (the Property) to be used as a house of worship. The Property is located at XXXXX and is legally described as XXXXX.

The Property was purchased from XXXXX (the Vendors) of XXXXX. The purchase price was XXXXX.

The Property includes a one story building constructed in XXXXX by the Vendors. The building has a total area of XXXXXsq ft. The Vendors leased the Property as office space.

Ruling Requested

You would like to know if the Church is required to pay GST in respect of the purchase of the Property.

Ruling Given

Based on the facts set out above, we rule that the supply by way of sale of the Property by the Vendors to the Church is a taxable supply and the Church is required to pay GST in respect of that supply to the Vendors.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

A "taxable supply" is defined in subsection 123(1) as a supply made in the course of a commercial activity. A "commercial activity" is defined under the same subsection to include the making of a supply (other than an exempt supply) of real property. Accordingly, supplies of real property made in Canada by way of sale are taxable unless specifically exempted under Part 1 of Schedule V XXXXX.

Subsection 165(1) provides that every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply. Furthermore, subsection 221(1) requires that every person who makes a taxable supply shall collect the tax payable in respect of the supply as agent of Her Majesty. There are some exceptions to the requirement to collect the tax for certain sales of real property whereby the recipient is required to pay the tax directly to the Canada Revenue Agency (CRA). However, these exceptions do not apply in these circumstances.

Based on the facts, the sale of the Property by the Vendors is a taxable supply and there are no exemptions that apply in respect of the supply. As the recipient of the taxable supply, the Church is liable to pay the GST in respect of the purchase of the Property and the Vendors are required to collect the GST in respect of the sale of the Property.

If you require clarification with respect to any of the issues discussed in this letter, please call my colleague, Francine Ménard directly at (613) 957-8222. Should you have additional questions on the interpretation and application of the GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Doretta Guoti-Thomas
Rulings Officer

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX

Case Number: 101464
Business Number: XXXXX
Attention: XXXXX
September 5, 2008

Subject:

GST/HST RULING
Review of Case Number XXXXX - Supply of real property

Dear XXXXX

Thank you for your facsimile of XXXXX, requesting that we reconsider our ruling (Case Number XXXXX) concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to a sale of real property by the City of XXXXX (the City). This prior ruling was issued by the XXXXX.

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Statement of Facts

On XXXXX, the City entered into a XXXXX year lease agreement (the Lease Agreement) with the XXXXX (the Association) for the supply by way of lease of real property owned by the City.

The legal description for the real property supplied under the Lease Agreement is: XXXXX (the Property). The Property, which includes a building, has the street address of XXXXX.

Article X of the Lease Agreement provides for an option to purchase the Property (the Option).

Under section 10.01 of the Lease Agreement, in consideration for the sum of $XXXXX and other good and valuable consideration paid by the Association to the City, the City granted the

Association the Option to purchase the Property under the following terms:

• the Association could exercise the Option at any time during the XXXXX-year term, and

• the Association had to provide written notice to the City of its intention to exercise the Option.

At any time during the term of the lease, the Association could pay any sums of money it so determined to the City on account of the "Purchase Price" of the Property, provided such sums were at least $XXXXX for each payment. These payments could be made even if the Association did not give notice in the foregoing manner of its intention to accept the Option. All such payments would be received and credited by the City on account of the Purchase Price of the Property. The Purchase Price means the price payable by the Association to purchase the Property as determined by section 10.02 of the Lease Agreement. Should the Option lapse or expire, the City was required to repay these amounts to the Association in full without interest or deduction unless the amount paid by the Association was given to the Association as a capital grant as described in section 10.02 of the Lease Agreement.

Section 10.03 of the Lease Agreement provides that if the Option is exercised, there is a binding agreement for the City to sell and the Association to purchase the Property at the Purchase Price. The purchase and sale of the Property shall close on the 30th day following acceptance of the Option.

On XXXXX, the Lease Agreement was amended, however, for purposes of the Option, the Lease Agreement was unchanged.

On XXXXX, the Association provided written notification that it was exercising the Option.

Ruling Requested

You would like confirmation of your view that the sale of the Property is exempt under section 25 of Part VI of Schedule V XXXXX as the sale was made under a written agreement entered into before March 10, 2004.

Ruling Given

Based on the facts set out above, we confirm our previous ruling that the City's supply by way of sale of the Property to the Association was a taxable supply and was subject to the GST at the rate of 6%, pursuant to subsection 165(1).

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

The coming into force provisions for the relevant legislative changes to section 25 of Part VI of Schedule V XXXXX provide, relative to this case, that the amendments to section 25 apply to any supply for which consideration becomes due after March 9, 2004, or is paid after that date without becoming due, but do not apply to a sale made under an agreement entered into before March 10, 2004.

When examining the facts, it is important to distinguish between the entering into a lease agreement that includes a right to purchase (i.e., the Option) and the actual execution of a purchase and sale agreement for the Property.

Pursuant to subsection 123(1), a sale of property includes "any transfer of the property and a transfer of possession of the property under an agreement to transfer ownership of the property". For GST/HST purposes, a transfer of real property generally refers to the legal ownership (that is "titled" ownership) of the real property.

As explained in policy statement P-164, Rent-To-Own Agreements, an agreement to transfer ownership of property may arise only where there is a binding purchase and sale agreement with the transfer of the ownership at or before the end of a specified period. A lease agreement with an option to purchase property is not a binding purchase and sale agreement.

There was no agreement to transfer ownership of the Property, and therefore no purchase and sale agreement for the Property, until XXXXX, when the Association exercised the Option to purchase the Property. Before XXXXX, the Association enjoyed only an option to purchase the Property and there was no agreement to purchase the property until the Association exercised the Option.

Accordingly, the sale of the Property was not made under an agreement in writing entered into before March 10, 2004. As such, section 25 of Part VI of Schedule V XXXXX does not exempt the sale of the Property and the sale was subject to tax.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9248.

Yours truly,

Ivan Bastasic
Director
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings
Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX

Case Number: 101883
Attention: XXXXX
XXXXX

October 15, 2008

Subject:

GST/HST RULING
XXXXX - Whether an Ingredient or a Dietary Supplement

Dear XXXXX:

Thank you for your letter of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the XXXXXGST/HST Rulings Centre. XXXXX to the Goods Unit of the Excise and GST/HST Rulings Directorate.

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Statement of Facts

Based on the information contained in your letter, and on information obtained through our own research, we understand the facts to be as follows:

The Product

1. XXXXX distributes a product called XXXXX.

2. XXXXX consists XXXXX sold in the form XXXXX.

3. XXXXX.

4. XXXXX.

5. XXXXX.

6. XXXXX.

Packaging and Labelling

7. XXXXX.

8. The background colour of the container and of the label is XXXXX. The relevant parts of the label on XXXXX can be divided into the four following categories:

a) Brand identification and the front display of XXXXX

This is the most visible part - designed as the front display, "XXXXX is printed at XXXXX, XXXXX is printed XXXXX, but the characters XXXXX, and finally XXXXX and XXXXX printed XXXXX in XXXXX.

b) Ingredient identification, directions for use XXXXX.

The English version is as follows: XXXXX.

The French version reflects the English version XXXXX.

c)XXXXX

There is a logo XXXXX which represents XXXXX. XXXXX.

d) Nutrition facts

The label indicates that there are XXXXX calories per XXXXX. The label also indicates that XXXXX contains the XXXXX as follows:

XXXXX.

Marketing

9. XXXXX is offered generally at the retail price of XXXXX. Thus, the recommended serving of XXXXX. XXXXX and is XXXXX XXXXX. Other XXXXX cost XXXXX to provide XXXXX XXXXX.

10. Based on our XXXXX research, we found that XXXXX commonly offered to the public: XXXXX. With the exception of the XXXXX, our XXXXX research indicates that XXXXX are presented as XXXXX. All XXXXX products are more often presented in pill or tablet form.

11. The XXXXX customers to find retailers where XXXXX is available XXXXX. We reviewed XXXXX and examined a large sample of retailers where XXXXX is available; the vast majority of these retailers are XXXXX.

In our sample, we did not find any other kind of retailer selling XXXXX.

12. XXXXX

Ruling Requested

You would like to know whether XXXXX, as described above, would be considered as a food or an ingredient or a dietary supplement for GST/HST purposes.

You also asked in another letter dated XXXXX, whether XXXXX would be zero-rated as a nutritional supplement for GST/HST purposes. We will make that determination in our response to that letter.

Ruling Given

Based on the facts set out above, we rule that XXXXX is not a food or ingredient for GST/HST purposes. Unless XXXXX is determined to be a nutritional supplement, it would be subject to GST at 5% or HST at 13%.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Taxable supplies of goods and services made in Canada are generally subject to tax at 5% (13% where the supplies are made in one of the participating provinces of Nova Scotia, New Brunswick or Newfoundland and Labrador). Nevertheless, zero-rated supplies of goods and services are subject to tax at the rate of 0%. A zero-rated supply is any supply included in Schedule VI.

Section 1 of Part III of Schedule VI, entitled "Basic Groceries", zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients to be mixed with or used in the preparation of such food or beverages, unless one of the exclusions set out in paragraphs 1(a) through (r) applies. None of the exclusions from zero-rating apply specifically to XXXXX.

The words "food", "beverages" and "ingredients" are not defined in the legislation. Memoranda Series Chapter 4.3 Basic Groceries addresses the question of whether products commonly described as "dietary supplements" are zero-rated as food, beverages or ingredients. Paragraph 2 of Memorandum 4.3 states that the CRA considers a product to be a food or beverage if an average consumer would recognize and purchase XXXXX as such in the ordinary course of buying basic groceries. Consumers usually consume food and beverages to sustain or maintain life, to allay hunger or thirst, or for enjoyment rather than for therapeutic or preventative effects (e.g., to correct actual or perceived health problems) or to achieve specific beneficial effects related to performance or physique.

With respect to ingredients, paragraph 4 of Memorandum 4.3 states that an average consumer would consider a product to be an ingredient if it added to the flavour, texture or appearance of the final product; that is, if it was integral to the final product. Moreover, to be considered an ingredient, the final product must, in and of itself, be a food or beverage. A product that is marketed for its beneficial effects and that is added to a food or beverage simply as a way to consume it would not be considered an ingredient.

However, not all things that are added to food are considered to be zero-rated ingredients. Memorandum 4.3 lays out more specific criteria for determining whether a product is a dietary supplement in paragraphs 148 to 159, based on the following sources:

• labelling;

• packaging/format; and

• marketing.

Some of the criteria in Memorandum 4.3 are not applicable to XXXXX or are not indicative of XXXXX as being a dietary supplement. However, a number of criteria are present which do indicate that XXXXX is a dietary supplement rather than a food or ingredient for purposes of the GST/HST.

These criteria are:

• XXXXX is sold in a marketing context in which it is in competition with other XXXXX products XXXXX.

• XXXXX suggests that XXXXX - with which XXXXX is in competition on the market.

• Packaging is in a form similar to a dietary supplement (format, colour and size of container).

• The price of XXXXX at the retail level is XXXXX. XXXXX, is necessary to have XXXXX effect. The price of XXXXX

• The vast majority of retailers for XXXXX are XXXXX

• The XXXXX above the name of XXXXX on the package suggests XXXXX. (XXXXX the directions indicate that XXXXX, the XXXXX inscription at XXXXX.

• The XXXXX suggest XXXXX.

• The XXXXX nominally for XXXXX makes claims that XXXXX can help XXXXX and, in some cases, XXXXX. Most of the XXXXX consists of supporting these claims with representations XXXXX.

This XXXXX the claims and representations are inherent to the product itself, XXXXX. In view of examining the marketing, labelling and packaging criteria as a whole, the fact that there is also a XXXXX does not preclude XXXXX from being considered as a dietary supplement.

The marketing, packaging and labelling elements considered together provide an overall indication that XXXXX is a dietary supplement rather than XXXXX.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-8815.

Yours truly,

Raymond Labelle
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 14th Floor
320 Queen Street
Ottawa, ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 103126
Attention: XXXXX
XXXXX
June 12, 2008

Subject:

GST/HST RULING
Property tax and additional rent

Dear XXXXX:

Thank you for your letter of XXXXX, concerning the application of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) to amounts of property tax paid by tenants of real property owned by XXXXX (the City).

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

As the scenario addressed by this ruling is in respect of real property located in XXXXX, a non-participating province, we will not make further reference to the HST.

XXXXX.

You also reference various provisions of the XXXXX, under which you indicate that an occupier or lessee of property owned by the City is directly liable to the City for the payment of real property taxes. In addition, you state that the City does not charge itself property taxes and that the City is therefore not recovering its costs when a lessee is paying real property taxes. Further, you state that it is the City's opinion that the real property taxes paid by a lessee should not be subject to GST as it is not a form of additional rent.

Statement of Facts

Based on your letter, we understand the following:

1. The City owns real property that it supplies by way of lease.

2. Pursuant to XXXXX, real property situated in a municipality is subject to taxation levied by the municipality, subject to certain exceptions provided under XXXXX. The City levies property taxes in respect of real property situated in the City.

3. Except as otherwise provided under XXXXX, XXXXX provides that, in the case of a real property assessment, an assessor (e.g., a person appointed as an assessor for the City) shall assess the property in the name of the owner of the land.

4. Pursuant to XXXXX, real property owned by the City is exempt from taxation (i.e., property taxes) levied by the City under the XXXXX subject to XXXXX. As such, the City is not required to pay itself property tax in respect of City-owned real property.

5. XXXXX provides that, where assessable property (e.g., real property) is exempt from taxation and an occupier has a right, interest or estate in the real property, an assessor shall assess the right interest or estate in the name of the occupier. "Occupier" is defined in XXXXX to include a lessee of a piece of land.

6. XXXXX provides that a right, interest or estate of an occupier that is assessed under XXXXX is subject to taxation under XXXXX.

7. A lessee of City-owned real property has a right/interest in the City-owned real property. In accordance with XXXXX, the right/interest of the lessee of City-owned real property will be assessed. As such, the lessee is directly liable to pay the City any property taxes levied by the City in respect of the leased property.

8. The lease agreement the City enters into with a lessee addresses the requirement for the lessee to pay the property taxes on the leased property directly to the taxing authority. Specifically, it states the following:

XXXXX.

Ruling Requested

You would like to know whether an amount of property tax that is assessed in the name of, and paid by, a lessee of City-owned real property is additional rent that is subject to the GST.

Ruling Given

Based on the facts set out above, we rule that an amount of property tax that is assessed in accordance with XXXXX in the name of a lessee of City-owned real property and for which the lessee is liable to pay the tax directly to the City in respect of the property that would otherwise be exempt from taxation under XXXXX is not additional consideration in respect of the lease and is not subject to the GST.

Explanation

Whether an amount of property tax paid by a lessee of City-owned real property is subject to GST depends on whether the amount of that property tax is consideration for a taxable supply. XXXXX imposes a direct liability on a lessee to pay property tax to the taxing authority in respect of City-owned real property that it leases from the City and that would otherwise be exempt from property tax. As such, the property tax paid by the lessee is not consideration for the City's supply of the real property by way of lease and is, therefore, not subject to the GST. Conversely, where such a direct liability, imposed under a legislative authority, for the lessee of real property to pay property tax to the taxing authority in respect of that property does not exist, and the lessee is merely paying the property tax on behalf of the lessor (i.e., the lessor is directly liable), the amount of property tax paid by the lessee is consideration for the lessor's supply of the real property by way of lease, which, if taxable, is subject to the GST.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

If you require clarification with respect to any of the issues discussed in this letter, please call Marcel Boivin, Manager, Real Property Unit, directly at 613-954-3772. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Ivan Bastasic
Director
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX

Case Number: 103499
XXXXX
XXXXX
XXXXX
April 16, 2008

Subject:

GST/HST RULING
Application of GST/HST on XXXXX granola bars

Dear XXXXX:

Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) XXXXX granola bars (the Product).

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Product is sold in cartons of XXXXX bars each weighing XXXXX-grams.

2. The Product is available in XXXXX varieties: XXXXX.

3. The ingredients of XXXXX variety are: XXXXX.

4. The labelling on the XXXXX cartons describes it as follows: XXXXX granola bars. XXXXX.

5. The ingredients of the XXXXX variety are: XXXXX.

6. The labelling on the XXXXX cartons describes it as follows: XXXXX.

7. The ingredients of the XXXXX variety are: XXXXX.

8. The labelling of the XXXXX cartons describes it as follows: XXXXX.

9. The Product is not sold primarily as a breakfast cereal.

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are taxable at 5% GST, or 13% HST pursuant to section 165.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated, pursuant to subsection 165(3). The tax rate in respect of a zero-rated supply is 0%, where a zero-rated supply is a supply that is included in Schedule VI.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

Under paragraph 1(h) of Part III of Schedule VI, the following products are excluded from zero-rating:

"granola products, but not including any product that is sold primarily as a breakfast cereal."

Granola products may be sold loose or pressed into bars. Granola bars generally have a mixture of cereals (e.g., rolled oats, rice or other whole grains) and honey and/or syrup as the main ingredients, and may include nuts and fruit. The ingredients in granola bars are not processed to a great extent, and the distinct character of each ingredient is retained. The mixture may be sold in loose form or pressed, for example, into bars.

As the Product is considered to be a granola product that is not sold primarily as a breakfast cereal, it falls under the exclusion pursuant to paragraph 1(h) of Part III of Schedule VI, and is taxable at 5% GST or 13% HST, as applicable.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9585. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Ben Boboski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5

[Addressee]

Case Number: 203573

Dear [Client]:

Subject: GST/HST RULING
Application of GST/HST to supplies of bulk cannabis

Thank you for your fax of October 10, 2019 concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to supplies of bulk cannabis made by […] (the “Corporation”) to federally licensed producers. We apologize for the delay in our response.

The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

STATEMENT OF FACTS

We understand the following:

1. The Corporation is […] licensed by Health Canada to produce cannabis. The Corporation is registered for the GST/HST.

2. The Corporation received its cultivation licence in [mm/yyyy], and has since received licences for sale (medical), processing and cultivation. The Corporation is authorized to sell cannabis plants and seeds to provincially and territorially authorized distributors and retailers, as well as to individuals who have registered to obtain cannabis products for medical purposes (“registered patients”).

3. […][Information about the Corporation].

4. […].

5. Subsection 2(1) of the Cannabis Act defines “cannabis” as meaning “a cannabis plant and anything referred to in Schedule 1 but does not include anything referred to in Schedule 2.”

6. Schedule 1 to the Cannabis Act lists the following:

1. Any part of a cannabis plant, including the phytocannabinoids produced by, or found in, such a plant, regardless of whether that part has been processed or not, other than a part of the plant referred to in Schedule 2;

2. Any substance or mixture of substances that contains or has on it any part of such a plant;

3. Any substance that is identical to any phytocannabinoids produced by, or found in, such a plant, regardless of how the substance was obtained;

7. Schedule 2 to the Cannabis Act lists the following:

1. A non-viable seed of a cannabis plant;

2. A mature stalk, without any leaf, flower, seed or branch, of such plant;

3. Fibre derived from a stalk referred to in item 2;

4. The root or any part of the root of such a plant.

8. Section 2 of the Cannabis Regulations states “These Regulations do not apply to a holder of a licence that is subject to the Industrial Hemp Regulations, or to an applicant for such a licence.”

9. Subsection 1(2) of the Industrial Hemp Regulations (SOR2018-145) states that for purposes of the Cannabis Act and these Regulations “industrial hemp means a cannabis plant – or any part of that plant – in which the concentration of THC is 0.3% w/w or less in the flowering heads and leaves.” The Corporation is not subject to the Industrial Hemp Regulations as they do not produce cannabis plants or any part thereof in which the concentration of THC is 0.3% w/w or less in the flowering heads and leaves.

10. Sections 26 and 27 of the Cannabis Regulations set out the authorized activities of federally licensed producers of cannabis for medical purposes:

Licence for Sale for Medical Purposes
Authorized activities

26 Subject to the other provisions of these Regulations, a holder of a licence for sale for medical purposes is authorized to conduct those of the following activities that are authorized by the licence:

(a) to possess cannabis products; and
(b) to sell cannabis products

Sale – other than clients

27(1) Subject to subsection (2), a holder of a licence for sale for medical purposes that authorizes the sale of cannabis products is authorized to sell or distribute

(a) cannabis products to any of the following:

(i) a holder of a licence, other than a licence for cultivation,

(ii) the Minister, or

(iii) a person to which an exemption has been granted under section 140 of the Act in relation to the cannabis or class of cannabis that is, or is contained in, a cannabis product that is sold or distributed;

(b) dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, that are cannabis products, to a holder of a licence for micro-cultivation or standard cultivation;

(c) cannabis plants and cannabis plant seeds, that are cannabis products, to a holder of a licence for a nursery; and

(d) cannabis products, other than cannabis plants and cannabis plant seeds, to a hospital employee if the employee’s possession of the cannabis product is for the purpose of, and in connection with, their duties.

RULING REQUESTED

You would like to know:

1. Would the direct sale from the Corporation to another licensed cannabis producer of bulk cannabis in fresh or dried form be a zero-rated supply?

2. Would the direct sale from the Corporation to another licensed cannabis producer of bulk cannabis for medical purposes be a zero rated supply?

RULING GIVEN

Based on the facts set out above and the explanation provided below, we rule as follows:

1. The direct sale from the Corporation to another licensed cannabis producer of bulk cannabis in fresh cut or dried form is not zero-rated under any provision of Schedule VI to the ETA and is therefore subject to GST/HST at the applicable rate.

2. The direct sale from the Corporation to another licensed cannabis producer of bulk cannabis for medical purposes is not zero-rated under any provision of Schedule VI to the ETA and is therefore subject to GST/HST at the applicable rate.

EXPLANATION

Generally, all supplies of property and services made in Canada are taxable unless an exemption from the GST/HST applies. Taxable supplies are supplies made in the course of a commercial activity and may be taxable at the rate of 0% (zero-rated supplies), 5%, 13%, or 15% on the value of the consideration for the supply depending on the province in which the supply is made. Exempt supplies are not subject to the GST/HST and are included in Schedule V. Zero-rated supplies are included in Schedule VI.

Specific supplies of agricultural and fishing products identified in Part IV of Schedule VI are zero-rated. There is no provision in Part IV which specifically zero-rates the sale of fresh cut or dried bulk cannabis.

Part I of Schedule VI contains provisions that zero-rate a broad range of drugs and substances that are regulated under federal legislation. The most relevant provision in respect of cannabis is paragraph 2(b) of Part I of Schedule VI which zero-rates a supply of a drug if the drug is set out on the list established under subsection 29.1(1) of the Food and Drugs Act (The Prescription Drug List) or that belongs to a class of drugs set out on that list, other than a drug or mixture of drugs that may, under the Food and Drugs Act or the Food and Drugs Regulations, be sold to a consumer without a prescription.

If such a drug or mixture of drugs can be sold to a consumer without a prescription, the supply won’t be zero-rated under paragraph 2(b). However, if such a drug or mixture of drugs cannot be sold to a consumer without a prescription, the supplies are zero-rated throughout the distribution chain.

In order for a supply of cannabis for medical purposes to be zero-rated, all of the conditions in paragraph 2(b) of Part I of Schedule VI must be met. The first condition contained in paragraph 2(b) of Part I of Schedule VI is that the supply must be a supply of a drug set out on the Prescription Drug List (or that belongs to a class of drugs set out on that list).

Phytocannabinoids and substances that are duplicates of such phytocannabinoids were added to the Prescription Drug List as part of the legislative changes made with the legalization of cannabis. Phytocannabinoids and substances that are duplicates of such phytocannabinoids are cannabinoids that occur naturally in the cannabis plant and include tetrahydrocannabinol (THC) and cannabidiol (CBD). At the same time that phytocannabinoids were added to the Prescription Drug List, the Cannabis Exemption (Food and Drugs Act) Regulations were enacted, which exempt cannabis for medical purposes and non-medical cannabis that has been manufactured and sold in accordance with the Cannabis Regulations from the application of the Food and Drugs Act.

The Prescription Drug List applies to products regulated under the Food and Drugs Act. As previously mentioned, cannabis for medical purposes manufactured and sold in accordance with the Cannabis Regulations is exempt from the application of the Food and Drugs Act and is therefore not a drug that is set out on the Prescription Drug List, even though cannabis for medical purposes contains phytocannabinoids. Therefore, paragraph 2(b) of Part I of Schedule VI to the ETA would not apply to supplies of cannabis for medical purposes.

Additionally, even if cannabis for medical purposes were a drug included in the Prescription Drug List, it would be excluded from paragraph 2(b) of Part I of Schedule VI as it could be sold to a consumer without a prescription. The cannabis that can be sold by a holder of a licence for sale for medical purposes (i.e., a person authorized under the Cannabis Act to sell cannabis for medical purposes) can also be sold as non-medical or recreational cannabis by a holder of a licence for sale (i.e., a person authorized under the Cannabis Act to sell non-medical or recreational cannabis). Further, the CRA does not consider that a “medical document” that is signed by an authorized health care provider (which document, defined in the Cannabis Regulations, permits individuals to access cannabis for medical purposes from federally licensed producers) meets the conditions to be a prescription for GST/HST purposes.

There is no provision in Part I of Schedule VI that distinguishes between cannabis for medical and non-medical purposes. It is our understanding that the difference between non-medical cannabis and cannabis for medical purposes is in the ways that it can be accessed, the public possession limits and the age at which cannabis can be accessed and possessed rather than the product itself. As such, cannabis that is in one of the classes in Schedule 4 to the Cannabis Act, which lists the classes of cannabis that an authorized person may sell, can be sold as either non-medical cannabis or cannabis for medical purposes.

Therefore, when the Corporation provides bulk cannabis to another licensed producer, whether the cannabis will be ultimately sold as cannabis for medical or non-medical purposes, such a supply is not zero-rated by any provision of Schedule VI to the ETA, and is therefore taxable at the applicable rate depending on the province in which the supply is made.

[…]

In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation(s) or the additional information provided herein.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-573-6088. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Kate Portner Gartke
Health Care Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate

Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5

June 15, 2021

[Addressee]
Case Number: 196187

Dear [Client]:

Subject: GST/HST INTERPRETATION
Application of the GST/HST to supplies made by an Independent Sales Organization

Thank you for your letter of December 19, 2018, concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to supplies made by an Independent Sales Organization (ISO). We apologize for the delay in our response.

The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

You represent an unnamed client (the Taxpayer) who is a GST/HST registrant. As an ISO, the Taxpayer markets or sells services on behalf of an acquirer for point of sale (POS) debit and credit card machines it has sold or leased to card acceptors. In addition to your incoming letter, you also provided two redacted agreements - […] (Agreement 1) between an unnamed acquirer and the Taxpayer and […] (Agreement 2) between an unnamed acquirer and the Taxpayer - to illustrate two scenarios under which the Taxpayer receives […] fees.

Agreement 1

The Taxpayer has contracted with an acquirer to receive device driver services and merchant acquiring program and residual services from the acquirer for […] (payment networks). Under this arrangement, the Taxpayer has an agreement with the merchant under which the Taxpayer earns a fee from the merchant as a result of each successfully processed debit and credit card transaction on POS machines that the Taxpayer may own or lease. You have not provided any sample agreements between the Taxpayer and a merchant. You have described this fee as the debit/credit transaction fee and/or communication fee required to be paid by the merchant on using the POS machine.

Agreement 2

An acquirer is registered with [payment networks] and provides electronic transaction processing for debit and credit card purchases. The Taxpayer will solicit purchasers of the acquirer’s services. As an independent contractor, the Taxpayer will identify potential merchants and may negotiate some terms of a merchant agreement between the acquirer and the prospective merchant under which the acquirer will provide payment processing services to the prospective merchant. Although the Taxpayer may recommend the fees to be charged to a prospective merchant, the acquirer has the final review and approval of both the prospective merchant and the fees to be charged. The Taxpayer will also ensure that prospective merchants have completed the application, verify the business activity of each prospective merchant, obtain and submit any other information required by the acquirer, and ensure that each prospective merchant receives copies of the appropriate terms and guides. The Taxpayer is compensated for its services based on a percentage of the total credit card sales volume. The Taxpayer may also receive commission fees when certain payments cards are activated.

INTERPRETATION REQUESTED

You have requested a GST/HST interpretation on whether the […] fees earned by the Taxpayer are consideration for supplies of exempt financial services.

In particular, you would like to know whether the fees earned by the Taxpayer:

* from the merchant in respect of an arrangement governed by Agreement 1 are consideration for supplies of exempt financial services on the basis that the Taxpayer is a “person at risk” under the Financial Services and Financial Institutions (GST/HST) Regulations (the Regulations); and

* from the acquirer in respect of an arrangement governed by Agreement 2 are consideration for supplies of exempt financial services on the basis that the Taxpayer is an agent of a “person at risk” under the Regulations.

INTERPRETATION GIVEN

Single/multiple supplies

The determination of whether a particular supply made by the Taxpayer is subject to GST/HST requires a detailed review of the facts and circumstances of the transactions which generally includes a review of the agreement(s) under which the supply is made. Where an agreement provides for the provision of a number of services or property and services, it must first be determined whether a single supply or multiple supplies are being provided under the agreement. This distinction is important in cases where a combination of services and or property is supplied by a person under an agreement, some of which would be taxable and some of which would be exempt if supplied separately.

Whether services performed by the Taxpayer are considered to be a single supply or multiple supplies is a question of fact. GST/HST Policy Statement P-077R2, Single and Multiple Supplies provides additional information on determining whether a single supply or multiple supplies are being provided.

If it is determined that multiple supplies are being provided by a person, the possible application of sections 138 and 139 should be considered. However, if it is determined that a single supply is being provided, then the predominant element of that supply must be established to determine the nature of the supply. If the predominant element of the single supply is determined to be a financial service, then the supply as a whole will be considered a financial service. This determination will generally be based on written agreements, between the person providing the service and the person’s client, detailing the actions, responsibilities and obligations of the person in connection with the supply.

As you have not provided the agreement between the Taxpayer and the merchant, in conjunction with Agreement 1, to provide clarity of the Taxpayer’s specific actions, obligations, roles, and responsibilities to the merchant, it is unclear what the Taxpayer’s supply would be and whether the Taxpayer would be providing a single or multiple supplies under that agreement. If each element of the Taxpayer’s supply is determined to be intricately linked to each other with no option to acquire certain services separately, then each element would be considered an integral part of a single supply. If not, then the Taxpayer’s services would be considered the provision of multiple supplies.

When reviewing the limited facts as set out above as they relate to Agreement 2, it is clear that the elements of the Taxpayer’s service are integral components that are inextricably linked to each other. Accordingly, the Taxpayer’s supply to the acquirer under Agreement 2 would be considered to be a single supply.

Characterization of supplies

A GST/HST registrant is generally required to charge GST/HST on a taxable supply of property or a service made in Canada (other than a zero-rated supply that is taxable at 0%) but not on an exempt supply. A supply of a financial service is exempt under Part VII of Schedule V to the ETA unless it is specifically zero-rated under Part IX of Schedule VI to the ETA. A financial service is defined in subsection 123(1) to mean anything that is included in any of paragraphs (a) to (m) of that definition and is not excluded by any of paragraphs (n) to (t) of that same definition.

Paragraph (a) of the definition of “financial service” includes the exchange, payment, issue, receipt or transfer of money, whether effected by the exchange of currency, by crediting or debiting accounts or otherwise.

Paragraph (l) of the definition of “financial service” means the agreeing to provide, or the arranging for, a service that is referred to in paragraph (a) to (i) and not referred to in any of paragraphs (n) to (t) of that same definition. The term “arranging for” is generally intended to include intermediation activities that are normally performed by financial intermediaries described in subparagraph 149(1)(a)(iii), such as agents, brokers and dealers in financial instruments or money.

As explained in Technical Information Bulletin TIB B-105, Changes to the Definition of Financial Service, in determining whether an intermediary's service is included in paragraph (l) of the definition of “financial service”, all of the facts surrounding the transaction, including the following factors, must be considered:

* the degree of direct involvement and effort of the person in the provision of a financial service referred to in any of paragraphs (a) to (i);

* the time expended by the intermediary in the provision of a financial service referred to in any of paragraphs (a) to (i);

* the degree of reliance of either or both the supplier and the recipient on the intermediary in the course of providing a financial service referred to in any of paragraphs (a) to (i);

* the intention of the intermediary to effect a supply of a financial service referred to in any of paragraphs (a) to (i); and

* the normal activities of an intermediary in a given industry (including whether the intermediary is engaged in a business of providing financial services).

Paragraph (t) of the definition of “financial service” excludes from its definition, a prescribed service. Section 4 of the Regulations lists services that are prescribed under this paragraph. Subsection 4(2) of the Regulations provides that the transfer, collection or processing of information and any administrative service, including an administrative service in relation to the payment or receipt of claims, benefits or other amounts, other than solely the making of the payment or the taking of the receipt, are generally prescribed for purposes of paragraph (t) unless subsection 4(3) of the Regulations applies to the service.

Subsection 4(3) of the Regulations provides, in part, that a service referred to in subsection 4(2) of the Regulations is not a prescribed service for purposes of paragraph (t) where the service is supplied with respect to an instrument by a person at risk, or by an agent, salesperson or broker who arranges for the issuance, renewal or variation, or the transfer of ownership, of the instrument for a person at risk. Under subsection 4(1) of the Regulations a “person at risk” means a person who is financially at risk by virtue of the acquisition, ownership or issuance by that person of the instrument or by virtue of a guarantee, an acceptance or an indemnity in respect of the instrument, but does not include a person who becomes so at risk in the course of, and only by virtue of, authorizing a transaction, or supplying a clearing or settlement service, in respect of the instrument. An “instrument” is also defined in that subsection to mean money, an account, a credit card voucher, a charge card voucher or a financial instrument.

Financial risk relates specifically to an instrument, not to what could otherwise be described as business or operational risks. Financial risk does not mean risk of financial loss arising because of negligence or failure to perform certain administrative obligations with respect to an instrument.

Agreement 1

It is generally understood that the supplies made by an acquirer to a merchant under a merchant agreement with respect to the processing of credit and debit card payments within those payment networks are supplies of a financial service that is referred to in any of paragraphs (a) to (i) of that definition and not referred to in any of paragraphs (n) to (t).

Under Agreement 1, the acquirer will provide services to the Taxpayer and, presumably, the Taxpayer will then provide these services to the merchant. The merchant is not a party to Agreement 1. Although you have indicated that the Taxpayer has a separate agreement with the merchant, that agreement was not provided. Based on the limited information provided, it is unclear precisely what is the nature of the supply that the Taxpayer is making to the merchant.

Although you have not provided specific details regarding a supply made by the Taxpayer to the merchant, it is not uncommon for a merchant to enter into an agreement with an ISO that has itself entered into an agreement with an acquirer for services. Under that scenario, the acquirer may be making taxable supplies to the ISO and the ISO may be making taxable supplies to the merchant. For example, an ISO may provide services to a merchant related to equipment the ISO has sold or leased to the merchant, such as initial setup and certification of connection to a network, technical support for software and hardware, operation and maintenance services, software, or marketing services. These supplies are generally taxable for GST/HST purposes. Alternatively, the acquirer may be making exempt supplies of processing credit and debit card transactions to the Taxpayer and the Taxpayer may be making exempt supplies of processing credit and debit card transactions to the merchant.

As previously noted, a “person at risk” relates to a person who is financially at risk in respect of an instrument, but does not include a person who becomes so at risk in the course of, and only by virtue of, authorizing a transaction, or supplying a clearing or settlement service, in respect of the instrument. Financial risk does not relate to what could otherwise be described as business or operational risk. As you have not provided a copy of the agreement between the Taxpayer and the merchant, there is insufficient information to conclude that the Taxpayer would or would not be financially at risk in respect of an instrument with respect to the Taxpayer’s supply to a merchant. For example, additional training costs or costs associated with the purchase and installation of hardware and software would not be financial risks related to an instrument, but are merely business expenses. However, we do note that, under Agreement 1, the Taxpayer is required to maintain a settlement account in Canada which could give indication that the Taxpayer is a person at risk in respect of an instrument by virtue of the services that it supplies to the merchants.

Agreement 2

As noted above, that the supplies made by an acquirer to a merchant under a merchant agreement with respect to the processing of credit and debit card payments within those payment networks are supplies of a financial service that is referred to in any of paragraphs (a) to (i) of that definition and not referred to in any of paragraphs (n) to (t). On this basis, there may be scope to consider that the Taxpayer may be making a supply of an exempt financial service under paragraph (l).

Based on the information provided in Agreement 2, we understand that the Taxpayer represents the acquirer with respect to soliciting merchants on behalf of the acquirer in order that the acquirer may make supplies to the merchant under a merchant agreement between the acquirer and the merchant. There is indication that the Taxpayer has direct involvement and effort in the provision of the acquirer’s supplies of financial services made to merchants under the merchant agreement. The Taxpayer has some autonomy within Agreement 2 to recommend fees and rates to the acquirer with respect to the merchant agreements. There appears to be a significant degree of reliance by both the acquirer and the merchant on the Taxpayer in concluding the merchant agreement and the information substantiates the Taxpayer’s intention of effecting a supply of a financial service.

Based on the nature of the supply provided by the Taxpayer and the facts surrounding Agreement 2, there is indication that the essential character of the supply would fall within paragraph (l) of the definition on the basis that the Taxpayer arranges for the supply of an exempt financial service made by the acquirer to the merchant. It is generally accepted that the essential character of the acquirer’s supply to the merchant is referred to in any of paragraphs (a) to (i) of the definition and is not referred to in any of paragraphs (n) to (t). Although some aspects of the Taxpayer's supply may be preparatory in nature, these elements would not be considered the essential character of the supply made to the acquirer. Furthermore, it would not appear that the nature of the services supplied by the Taxpayer would fall within paragraph (t) so the determination of whether the Taxpayer or the acquirer is a person at risk is not necessary.

Under Agreement 2, as an independent retailer the Taxpayer may also sell card processing equipment or Internet gateway services and software which has been approved by the acquirer and which is compatible with the acquirer’s operational systems. The acquirer will provide price lists for these items from time to time if the Taxpayer chooses to purchase those items from the acquirer. The Taxpayer is required to identify the card processing equipment that the merchant will use in conjunction with the acquirer’s services. The sale, lease and/or rental of POS terminals and other equipment will be offered under a separate written agreement between the Taxpayer and the merchant. As noted above, the sale or lease of POS equipment is not a financial service and is subject to GST/HST.

In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation(s) or the additional information provided herein.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 902-719-7843. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Stacy Furlong
Financial Services Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5

[Addressee]

Case Number: 192033r2

Dear [Client]:

Subject: GST/HST RULING
Assignment of an agreement of purchase and sale of a condominium unit

We have reviewed our previous ruling dated [mm/dd/yyyy], issued under case number 192033r, regarding the application of GST/HST to an assignment of a purchase and sale agreement for a condominium unit. The Canada Revenue Agency (CRA) honours the ruling given in case number 192033r and will not revoke or amend that ruling, given that the assignment has already taken place. However, following further review, we would like to clarify that the previous ruling is not applicable to other transactions with similar facts. We are providing the following letter for your information, to reflect the CRA’s position based on the facts presented.

The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

STATEMENT OF FACTS

Based on the information you provided previously, related to cases 192033 and 192033r, we understand the following:

1. You are the authorized representative of […](the Assignor).

2. The Assignor is a non-resident of Canada and a non-registrant for GST/HST purposes.

3. The Assignor is not engaged in a business of purchasing and selling real property in Canada.

4. On [mm/dd/yyyy], the Assignor and […](the Vendor) entered into an Agreement of Purchase and Sale ([…][the Agreement]) with respect to a residential condominium unit (the Unit) legally described as: […] with a municipal address of […].

5. According to [the Agreement]:

a) the Assignor was required to pay, to the Vendor, a purchase price in the amount of $[…] for the Unit, plus [GST/HST]; it was the sole responsibility of the Purchaser to apply for any applicable rebates.

b) the Assignor was required to pay, to the Vendor, a first deposit in the amount of $[…] (the Deposit);

c) although [the Agreement] included areas that would normally be used to identify the amount of a second, third and fourth deposit that the Assignor would be required to pay to the Vendor on a predetermined date, the amount of each of these deposits was identified as being $[…] and the information indicating the predetermined dates was struck-through; and

d) the Assignor was required to pay, to the Vendor, the balance of the purchase price (presumably, $[…], but subject to closing adjustments including [GST/HST]) on the Completion Date (anticipated between [mm/dd/yyyy] and [mm/dd/yyyy]).

6. The Assignor entered into a confidentiality agreement, dated [mm/dd/yyyy], under which they agreed to keep information about the sale of the Unit under [the Agreement] in strict confidence, given that the Vendor had entertained the Assignor’s offer to purchase the Unit prior to the date of acceptance of offers, from the public, for units in the development in which the Unit is situated.

7. The Deposit was paid [by the Assignor to the Vendor] on [mm/dd/yyyy]; the same day that [the Agreement] was signed by the Assignor.

8. No information was provided with respect to financing.

9. The Assignor’s stated primary purpose for entering into [the Agreement] with the Vendor was to purchase the Unit for her daughter to live in while she attended […][the post-secondary institution].

10. According to the documentation provided by the Assignor (note: dates were taken from documentation received and not the summary provided on fax cover sheets, as these were often contradictory):

a) Her daughter’s date of birth is [mm/dd/yyyy]; therefore, at the time she entered into [the Agreement] with the Vendor, her daughter was [#] years old;

b) her daughter received conditional acceptance to [the post-secondary institution] in the Spring of [yyyy];

c) her daughter received her […][secondary school examination] results on [mm/dd/yyyy];

d) the results did not meet [the post-secondary institution]’s conditional acceptance requirements, and as a result, [the post-secondary institution] revoked her daughter’s conditional acceptance on [mm/dd/yyyy]. Consequently, the Assignor decided to sell her interest in the Unit.

11. On [mm/dd/yyyy], the Assignor and […](the Assignee) entered into an Assignment of Contract of Purchase and Sale (the Assignment Agreement) with respect to the Unit.

12. According to the Assignment Agreement:

a) the Assignee was required to pay, to the Assignor, an assignment amount of $[…] for the assignment of [the Assignor’s] rights in [the Agreement]. […][An amount of ]$[…] was payable [by the Assignee to the Assignor] as a deposit and the remaining balance of $[…] was payable [to the Assignor] on the Completion Date;

b) the Assignee was required to pay, to the Developer, an assignment fee of $[…] plus [GST/HST];

c) the assignment amount included an amount to reimburse the Assignor for the Deposit of $[…] that was paid upon execution of [the Agreement] thus, the Assignor’s profit before commissions was $[…] (that is, $[…] - $[…] = $[…]);

d) the Assignor was responsible for paying, to the Sub-agent, both the listing and selling agent portions of the commission in respect of the assignment of the Assignor’s rights in [the Agreement], which was a total of $[…] thus, the Assignor’s profit after commissions was $[…] (that is, $[…] - $[…] = $[…]); and

e) the assignment amount (that is, $[…]) was inclusive of any [GST/HST] payable with respect to the assignment of the Assignor’s rights in [the Agreement], and the Assignor must remit any [GST/HST] payable.

13. At the time that the Assignor assigned her rights in [the Agreement] to the Assignee, the Unit had not been registered as a condominium complex, and was not occupied.

RULING REQUESTED

You would like a ruling that the Assignor is not a builder of the Unit under paragraph (d) of the definition of “builder” in subsection 123(1) and that the Assignor’s assignment of her rights in the Agreement is an exempt supply under section 2 of Part I of Schedule V.

RULING GIVEN

Based on the information set out in the statement of facts, we rule that the Assignor is a builder of the Unit under paragraph (d) of the definition of “builder” in subsection 123(1) and that the Assignor’s assignment of their rights in the Agreement is a taxable supply.

EXPLANATION

Upon entering into an agreement for the purchase and sale of a new residential condominium unit that has yet to be constructed, the purchaser is considered to have acquired an interest in the residential condominium unit. An assignment of such an agreement of purchase and sale is considered to be a supply by way of sale of the interest in the residential condominium unit. Pursuant to section 2 of Part I of Schedule V, the supply by way of sale of an interest in a residential condominium unit (for example, the assignment of the Agreement with respect to the Unit) is generally an exempt supply for GST/HST purposes where the person selling the interest is not a builder of the residential condominium unit.

The term “builder” is defined in subsection 123(1). Generally, paragraph (d) of the definition provides that a person is a builder of a residential complex (for example, a residential condominium unit) where the person acquires an interest in the complex:

(i) in the case of a condominium complex or residential condominium unit, at a time when the complex is not registered as a condominium, or

(ii) in any case, before it has been occupied by an individual as a place of residence or lodging,

for the primary purpose of

(iii) making one or more supplies of the complex or parts thereof or interests therein by way of sale, or

(iv) making one or more supplies of the complex or parts thereof by way of lease, licence or similar arrangement to persons (other than to individuals who are acquiring the complex or parts otherwise than in the course of a business or an adventure or concern in the nature of trade).

However, a person that meets the conditions in paragraph (d) of the definition of “builder” might nonetheless be excluded from the definition if the person meets the conditions set out in subparagraph (f)(iii). Generally, subparagraph (f)(iii) of the definition provides that a person is not a builder of a residential complex if the person is an individual who acquires the complex or interest in it, otherwise than in the course of a business or an adventure or concern in the nature of trade.

The matter of whether an individual is a builder of a residential complex under paragraph (d) of the definition of “builder” in subsection 123(1) depends, in part, on the primary purpose for which the individual acquires an interest in the complex. The primary purpose for which the individual acquires the interest in the complex is a question of fact that can only be judged by outward indicators (that is, the presence or absence of physical actions and/or evidence).

Generally, if an individual acquires an interest in a residential complex (that is, acquires the interest in the complex before it has been occupied by an individual as a place of residence or lodging) and sells the interest before or while the complex is under construction, then the action of selling the interest is viewed strongly as evidence that the individual acquired the interest in the complex for the primary purpose of selling the interest in the course of a business or an adventure or concern in the nature of trade. However, if the individual asserts that they acquired the interest in the complex for the primary purpose of using the residential complex as a place of residence either for themselves or a relation, then outward indicators must support the asserted primary purpose in order for it to be proven true. Practically, this means that the onus is on the individual to prove two things.

First, the individual must prove that the primary purpose for which they assert that they acquired the interest in the residential complex was a firm, fixed and settled intention that was not likely to change. Put differently, the asserted primary purpose of using the complex as a place of residence either for the individual or a relation must have been more than a tentative, provisional or exploratory contemplation and must not have been conditional or dependent on future events occurring.

Second, the individual must prove that, objectively, they had reasonable prospects of bringing the primary purpose for which they assert that they acquired the interest in the residential complex to fruition or fulfillment within a reasonable time. Put differently, the individual must have the means and resources necessary to acquire the complex for use as a place of residence either for themselves or a relation.

Based on the information in the original ruling and the request for reconsideration, the Canada Revenue Agency (CRA) is of the view that you have not proven that the primary purpose for which the Assignor asserts that she acquired the interest in the Unit was a firm, fixed and settled intention that was not likely to change. To be clear, the CRA is of the view that your assertion at Fact #9 about the primary purpose for which the Assignor acquired the interest in the Unit was a tentative, provisional or exploratory contemplation that was conditional or dependent on future events occurring (that is, the Assignor’s daughter being accepted and attending [the post-secondary institution]).

In the absence of sufficient outward indicators to support your assertion at Fact #9, and the presence of outward indicators of a tentative contemplation with respect to the purchase at Fact #10, the CRA views the Assignor’s action of assigning her rights in the Agreement as evidence that the Assignor acquired the interest in the Unit for the primary purpose of selling the interest in the course of a business or an adventure or concern in the nature of trade. Consequently, the Assignor is a builder of the Unit under paragraph (d) of the definition of “builder” in subsection 123(1). As no exemption in Schedule V applies to make the Assignor’s sale of the interest in the Unit an exempt supply, the Assignor’s assignment of her rights in the Agreement is a taxable supply for GST/HST purposes.

ADDITIONAL INFORMATION

For GST/HST purposes, the supplier of a taxable supply is generally required to collect and account for the tax payable by the recipient of the supply. However, paragraph 221(2)(a) provides that a non-resident of Canada who makes a taxable supply of real property by way of sale is not required to collect the tax payable by the recipient. Instead, paragraph 228(4)(b) requires the recipient to remit the tax payable directly to the Receiver General.

The Assignor’s assignment of their rights in the Agreement is a taxable supply of real property by way of sale. The tax payable by the Assignee on the assignment is calculated on the total consideration (that is, the assignment amount) payable for the real property.

In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed. The interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the CRA with respect to a particular situation. Future changes to the ETA, regulations, or the CRA's interpretative policy could affect the interpretation(s) or the additional information provided herein.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 506-349-7596. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Nicole Collins
Real Property Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate