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, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 109082
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
[…][Eligibility to claim the 83% Public Service Body Rebate as a facility operator]
Thank you for your letter of August 26, 2008, regarding the eligibility of […] (the Association) to claim an 83% public service body (PSB) rebate as a facility operator under section 259 of the Excise Tax Act (ETA) in respect of its operations. We apologize for the delay in responding to your inquiry.
As of July 1, 2010, in addition to an 83% PSB rebate of the goods and services tax (GST) and the federal part of the harmonized sales tax (HST), a facility operator resident in Ontario is also eligible to claim an 87% PSB rebate of the provincial part of the HST for non-creditable tax charged in respect of property or services to the extent that the property or services are for consumption, use or supply in activities engaged in by the person in the course of operating a qualifying facility in Ontario for use in making facility supplies.
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the ETA unless otherwise specified.
STATEMENT OF FACTS
Based on the information provided […], we understand the following facts:
1. The Association is a registered charity within the meaning assigned to that expression by subsection 248(1) of the Income Tax Act. As such, the Association is a charity for GST/HST purposes.
2. According to the Association’s Letters Patent issued on [mm/dd/yyyy], the Association was incorporated as a not-for profit, without share-capital, corporation in Ontario. The Letters Patent state the Association was incorporated for the following objects:
a) To provide a home for the care and security of […]
3. The Association’s Financial Statements ended [mm/dd/yyyy] state: […]
4. The Association is not registered for GST/HST.
5. The Association owns and operates one facility, […] (the Facility) in […], Ontario pursuant to the authority of a licence or an approval issued under the Long-Term Care Homes Act, 2007.
The Association is required to comply with and operate by the standards and guidelines outlined in the Long-term Care Homes Program Manual.
6. On [mm/dd/yyyy], the Association entered into a Service Accountability Agreement with the Central Local Health Integration Network (the LHIN) to provide accommodation, care, and programs pursuant to the agreement to residents at the Facility. The LHIN provides funding to the Association to operate the Facility and provide these services.
7. The Facility provides accommodation, meals, and nursing services, to its residents. In addition, the Facility provides, nursing care and assistance with feeding, toileting, bathing and dressing; continence management; dental, vision, hearing care […]; intravenous therapy; foot care; tube feeding; wound care; and dietary services. Specialty services are provided on-site through the Association’s partners and include laboratory services; X-ray services; physiotherapy; and occupational therapy.
8. The Facility is a [#] bed facility with [#] resident home areas; [#] home areas house [#] residents and [#] home areas house [#] residents.
[#] home areas house residents with heavy care needs and require total care including a two-person transfer, assistance with all Activities of Daily Living; regular bladder and bowel care and feeding. These residents are cognitively impaired.
[#] home areas are secured home areas for residents with dementia. These residents also require heavy care. The remaining home area houses residents who require physical care and have moderate cognitive abilities.
9. Residents at the Facility have various health care conditions including Parkinson’s disease, cancer, acquired brain injuries, MS, or are post-stroke. […] percent ([…]%) of residents ([#]) are incontinent; […] percent ([…]%) of residents ([#]) experience a form of dementia or related cognitive impairments. […]
10. On [mm/dd/yyyy], the Facility entered into an agreement with a physician to perform the duties of a “Medical Director” of the Facility. This agreement remains in effect for […] years.
Section […] of the agreement states that the Facility will pay a fee for the administrative services provided by the Medical Director in the amount of $[…]. The administrative services and responsibilities of the Medical Director are outlined in […] of the agreement. They include the requirement to: […]
11. On [mm/dd/yyyy], the Facility entered into an agreement with [#] physicians to perform the services of “Attending Physician” of the Facility. This agreement remains in effect for […] years. Under the agreement, the physician shall be accountable to the Medical Director for meeting the Facility’s policies, standards, and protocols of medical care and for providing the services described in Appendix […] of the agreement. Appendix […] to the agreement reads as follows: […]
12. The physicians each work […] hours a week and will visit residents under their care at least […]. In addition, residents can meet with either physician on an as-needed basis.
Based on the information provided, the physicians annually spend [#] hours performing routine physician duties; [#] hours on quarterly medication reviews, [#] performing weekly rounds and [#] hours for care conferences.
Each physician has a Doctor’s Communication book that is maintained by the nursing staff that the physicians review regularly. The Doctor’s Communication book contains a list of issues pertaining to residents (e.g., behavioural, dietary, physical) requiring the attention of the physician during the next visit to [the Facility]. For example, an entry in the Doctor’s Communication book may request that the physician assess a resident regarding a rash or other medical issue.
A nurse contacts the on-call physicians regularly regarding changes in medication, test results, orders, and […] for residents under their care.
In addition, residents taking medication for dementia are required to have their medication adjusted frequently. Each adjustment must be ordered by a physician. […]
It is understood that nursing staff spend approximately [#] hours annually for phone consultations with the Attending Physician to discuss change in orders etc. Additional calls are made to the physicians for the [#] residents with dementia who experience incidents of aggression for medication adjustments.
13. Based on the [yyyy] Staffing Report for the Ministry of Health and Long-Term Care, the Facility also employs RNs […], RPNs […]. The Facility also has a […].
14. The Facility also provides physiotherapy to its residents. […]
15. Admission to the Facility is coordinated through a local Community Care Access Centre (CCAC). Individuals apply for a placement in a long-term care facility through the CCAC. CCACs are local organizations that were established by the Ministry to assess people to determine the type of care and services needed and admission to long-term care facilities.
16. The Facility approves the acceptance of a resident based on whether they can meet the health care needs of the resident.
RULING REQUESTED
You would like to know whether the Association is a facility operator making facility supplies as these terms are defined in subsection 259(1) and therefore entitled to claim an 83% PSB rebate of the non-creditable tax charged that became payable on or after January 1, 2005, in respect of operating the Facility.
RULING GIVEN
Based on the facts set out above, we rule that the Association is not entitled to claim an 83% PSB rebate of the GST and the federal part of the HST for non-creditable tax charged in respect of its operation of the Facility as the Association is not a facility operator of a qualifying facility where facility supplies are made as these terms are defined in subsection 259(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
To be eligible for the 83% PSB rebate, an entity must be a “hospital authority”, a “facility operator” or an “external supplier”, as set out below.
The Association is not making facility supplies because any exempt supplies it makes as part of a medically necessary process of health care for residents at the Facility are not reasonably expected to take place under the active direction or supervision, or with the active involvement, of a physician as required by subparagraph (a)(ii) and clause (a)(ii)(A) of the definition of “facility supply”.
Hospital Authority
A “hospital authority” is defined in subsection 123(1) as “an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority” for GST/HST purposes.
Given that the Minister of National Revenue has not designated the Association as a hospital authority, it is not a hospital authority for purposes of the ETA. Therefore, it is necessary to determine whether the Association is a facility operator or an external supplier.
The administrative criteria for designation as a hospital authority are set out in GST/HST Memoranda Series 25.2, Designation of Hospital Authorities. This memoranda is available on the Canada Revenue Agency’s (CRA) website at www.http://www.cra-arc.gc.ca.
Facility Operator
A “facility operator” is defined in subsection 259(1) as meaning “a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility”.
The Association is a registered charity under the ETA. Therefore, the Association meets the first requirement of the definition of a facility operator. In order to meet the second requirement, the Association must operate a “qualifying facility” as described in subsection 259(2.1).
Section 259(2.1) sets out the criteria that must be met for a facility, or part of a facility, other than a public hospital, to be a qualifying facility, for a fiscal year, or any part of a fiscal year, of the operator of the facility or part.
A facility or part of a facility will be considered a qualifying facility if:
(a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition of “facility supply” in subsection 259(1) to “public hospital or qualifying facility” were references to the facility or part;
(b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and
(c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
Facility Supply
Subsection 259(1) defines the term “facility supply” as an exempt supply (other than a prescribed supply) of property or a service in respect of which:
(a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process
(i) is undertaken in whole or in part at the public hospital or qualifying facility,
(ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of
(A) a physician acting in the course of the practise of medicine,
(B) a midwife acting in the course of the practise of midwifery,
(C) if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner acting in the course of the practise of a nurse practitioner, or
(D) a prescribed person acting in prescribed circumstances, and
(iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that
(A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(B) a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and
(D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and
(b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier.
A "physician" is defined in subsection 259(1) as “a person who is entitled under the laws of a province to practice the profession of medicine”.
The definition of “facility supply” in subsection 259(1) is to be applied on a supply-by-supply basis. To be a “facility supply”, the property made available or the service rendered to an individual at the public hospital or qualifying facility must be an exempt supply (other than a prescribed supply).
Section 2 of Part II of Schedule V exempts a supply of an institutional health care service made by the operator of a health care facility if the service is rendered to a patient or a resident of the facility, but not including a cosmetic service, and a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes. The terms “institutional health care service” and “health care facility” are defined in Section 1 of Part II of Schedule V.
Section 1 of Part V.1 of Schedule V exempts supplies of property or services made by a charity unless specifically excluded under paragraphs (a) to (n) of Section 1 of Part V.1 of Schedule V.
As the Association is a charity, the services supplied by the Association to residents at the Facility would generally be exempt under Section 2 of Part II and section 1 of Part V.1 of Schedule V.
Paragraph (a), subparagraphs (a)(i) and clause (a)(ii)A of the definition of “facility supply” in subsection 259(1) further require that the exempt supply of property be made available, or the exempt supply of a service be rendered, at a public hospital or qualifying facility and be part of a medically necessary process of health care for an individual. This process must be undertaken in whole or in part at the public hospital or qualifying facility and reasonably be expected to take place under the active direction or supervision, or with the active involvement, of a physician acting in the course of practise of medicine (or in certain circumstances, a midwife, a nurse practitioner or a prescribed person in prescribed circumstances).
The Facility has entered into an agreement with a physician as Medical Director for the supply of administrative services. The supply of these administrative services by the physician is not a “facility supply” because they are not supplied as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease or diagnosing or treating an injury, illness or disability or providing palliative health care as required under paragraph (a) of the definition of facility supply.
The Facility has also entered into an agreement with […] other physicians to provide health care services to residents at the Facility. The service outlined in paragraphs […] of the Attending Physician Agreement would be part of a medically necessary process of health care… or providing palliative health care. For example, assessing residents and providing a physical examination, requisitioning diagnostic services and resident referrals, and completing medication, diet and treatment orders are all part of a medically necessary process of health care.
While elements of exempt supplies made by the Association may be services that are part of a medically necessary process of health care, the definition of “facility supply” imposes the requirement that the medically necessary process of health care be reasonably expected to take place under the “active direction or supervision, or with the active involvement” of a physician.
Meaning of the term “active”
The phrase “active direction or supervision, or with the active involvement of a physician” is not defined in the ETA. The inclusion of the term “active” before the words “direction”, “supervision” and “involvement” in the legislative provision suggests a particular and more restrictive set of circumstances than those contemplated had the term “active” not been included.
To understand the circumstances contemplated by the inclusion of the term “active”, it is necessary to consider the intent of the amendments made to section 259 for the expansion of the 83% PSB rebate. According to the 2005 Budget Plan Annex 8 Tax Measures: Supplementary Information (the Budget Plan), the expansion of the 83% PSB rebate was intended to apply to charities and non-profit organizations that provide a high level of health care services similar to those traditionally performed in hospitals.
Specifically, the Budget Plan states that provincially recognized and funded non-profit public health care facilities established and operated for the medical or surgical treatment of individuals will become eligible to claim an 83% PSB rebate of the otherwise unrecoverable GST and federal component of the HST paid on purchases related to their exempt health care operations.
The Budget Plans lists five types of entities eligible for the 83% PSB rebate that are established and operated for the medical or surgical treatment of individuals. The listed entities are ambulatory care hospitals, cancer clinics (and other specialized clinics), day surgery clinics, community health centres, and facilities offering high-level therapeutic care. For these entities to be eligible for the 83% PSB rebate, the medically necessary process of health care for individuals requiring medical or surgical treatment must require the kind of “active” physician direction, supervision, or involvement that Parliament intended by including this term in the legislation.
Although the legislation does not expressly require an entity to be established or operated for the medical or surgical treatment of an individual to be entitled to the 83% PSB rebate, it is the CRA’s view that based on the policy intent set out in the Budget Plan, the inclusion of the term “active” in the legislative provision implies that only entities established for these purposes could meet the restrictive set of circumstances contemplated by the inclusion of this term.
To determine if a particular entity not listed in the Budget Plan is eligible for the 83% PSB rebate, one must understand the meaning of the phrase “medical or surgical treatment” and the specific circumstances constituting a medical necessary process of health care that is reasonably expected to take place under the active direction, supervision or with the active involvement of a physician.
Medical or surgical treatment
The phrase “medical or surgical treatment” is not defined in the ETA. Where a phrase is not defined, the established principles of statutory interpretation provide that the usual and ordinary meaning of the phrase applies. The Deluxe Black’s Law Dictionary, Sixth Edition, West Publishing Co., 1990 defines the ordinary meaning of the term “medical” as pertaining to the study or practice of medicine, or requirement of treatment by medicine.
In addition, the Dorland’s Illustrated Medical Dictionary, 30th Edition defines the term “surgical” as pertaining to, or being correctible by surgery. Surgery is a form of medical care that can only be performed by a physician (surgeon).
The CRA’s interpretation of the term “medical or surgical treatment” is outlined in GST/HST Memoranda Series 25.2, Designation of Hospital Authorities. The term “medical or surgical treatment” refers to treatment provided by physicians for the management and care of a patient to address a disease, disorder or injury and the exercise of professional skill in examining the patient, making a diagnosis, performing surgical procedures and alleviating the disease, disorder or injury. Medical and surgical treatment does not refer to services provided by nursing staff, physiotherapists or other health care professionals, or to services related to providing comfort or the necessities of life. Therefore, an entity established and operated for the medical or surgical treatment of an individual is an entity that is established and operated for the purpose of providing care that can only be rendered by a physician to an individual under his or her management.
Medically necessary process of health care
The phrase “medically necessary process of health care” is also not defined in the ETA. For purposes of this provision, the CRA considers a “medically necessary process of health care” to be a series of services, actions, operations or events determined to be medically necessary by a physician undertaken for purposes of maintaining health, preventing disease, making a diagnosis or treating an injury, illness or disability, or providing palliative health care.
Based on the meaning of these two phrases, a medically necessary process of health care for an individual would reasonably be expected to take place under the active direction, or supervision or active involvement of a physician in circumstances where the series of services, actions, operations and events can only be undertaken directly or personally by, and are the responsibility of a physician. These circumstances are a common element for the entities listed in the Budget Plan.
For example, the medically necessary process of health care for an individual that occurs in a day surgery clinic is comprised of a series of services, actions, operations and events including the surgeon’s review of relevant diagnostic tests results, X-rays, or MRI, consultations with other physicians and surgeons, anaesthetic considerations, and planning and performing the surgical procedure. The surgeon also assesses the patient prior to discharge and again during a follow-up appointment.
Similarly, in a community health centre, the series of services, actions, operations and events that comprise the medically necessary process of health care for an individual include the physician’s meeting and physical examination of a patient, the diagnosing of a disease or the treating of an injury or disorder. The physician may or may not order diagnostic testing, refer the patient for other consultations, or review test results from previous medical testing. Similar services, actions, operations and events occur in the cancer and other clinics, ambulatory care hospitals and facilities offering high level of therapeutic care.
The medically necessary process of health care that occurs in these entities is such that the physician can only be the person responsible for the delivery of the key services, actions, operations and events that reflect the objectives of the day surgery clinic and community health care centre because the physician is the only person qualified to do so. Although patients may receive complimentary care from other health care providers while visiting these entities, receiving medical care provided by a physician is the underlying purpose for the patients’ visit. Patients attending a day surgery clinic or a community health centre attend these entities for the purpose of seeking and relying on the professional expertise, skills and knowledge of the physician. Patients expect to meet and be treated by a physician for their medical condition.
In contrast, the Association is a provincially recognized non-profit organization funded by the Central Local Health Integration Network to provide residents at the Facility with accommodation and the services listed under the Long-term Care Home Services Accountability Agreement. The Letters Patent for the Association indicate the Facility was established and is operated as […]. The Facility primarily provides residents with secure accommodation, meals, and 24 hr nursing services to its residents.
The medically necessary process of health care for a resident at the Facility is reflected in the resident’s care plan completed by the Attending Physician. The care plan includes a series of services, actions, operations or events determined by the Attending Physician to be medically necessary to maintain a resident’s health. It is understood that a resident’s care plan includes entries regarding the resident’s medical history, medications and other therapeutic interventions (i.e., wound and restorative care, physical therapy, and lab work), the resident’s dietary, behavioural, and social needs and the resident’s requirements regarding the activities of daily living. Therefore, the medically necessary process of health care for a resident at the Facility is comprised of a series of services, actions, operations and events including nursing services, physiotherapy, dietary services, wound care, and medical care.
Discussions with you indicate that residents in [#] home areas have heavy care needs and require a two-person transfer, are totally incontinent and are either cognitively impaired or have dementia. In addition, many residents require restorative aid and/or complex wound care which is provided by specialized nursing staff. The nursing staff spends several hours each day assisting each resident with the activities of daily living (i.e., transfer, toileting, feeding, and mobility) whether rendering the services themselves or supervising other staff members in the delivery of these services. Residents at the Facility receive physiotherapy […] and […] dietary services […].
The medically necessary process of health care for a resident at the Facility is such that the nursing staff and other health care professionals are responsible for the delivery of the key services, actions, operations and events that reflect the objectives outlined in the Letters Patent for the Facility and not the Attending Physician. The Attending Physician may be required under the Attending Physician’s Agreement and the Long-Term Care Homes Act and Long-term Care Homes Program Manual to perform certain duties and meet certain responsibilities (i.e., visit with each resident every week, provide an on-call service, review the results from all diagnostic tests ordered, counter-sign all orders, perform semi annual reviews of the care plan and other services). However, the Facility, or part of the Facility was not established for the medical or surgical treatment of an individual. The underlying purpose for residents and/or their legal guardians to seek residence at the Facility is to receive 24-hour nursing care and supervision within a secure setting and not medical care provided by a physician.
Therefore, unless the Facility, or part of the Facility, is operated for the purpose of providing medical or surgical treatment it cannot be said that the medically necessary process of health care for a resident at the Facility that is reasonably expected to take place under the active direction, supervision or with the active involvement of a physician.
The Association is not making facility supplies because any exempt supplies it makes as part of a medically necessary process of health care for residents at the Facility are not reasonable expected to take place under the active direction or supervision, or with the active involvement, of a physician as required by subparagraph (a)(ii) and clause (a)(ii)(A) of the definition of “facility supply”.
As the Association is not making facility supplies, it is not necessary to determine whether the additional elements of health care described in clauses (a)(iii)(A) to (D) of the definition of facility supply have been met.
Therefore, for the Association to claim the 83% PSB rebate, it must be an “external supplier”.
External Supplier
An “external supplier” is defined in subsection 259(1) as meaning “a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies or home medical supplies”.
As indicated above, the Association is a registered charity for purposes of the ETA and therefore meets the first part of the definition of “external supplier”. To meet the second part of the definition of “external supplier”, the Association must make ancillary supplies, facility supplies or home medical supplies.
We have established that the Association does not make facility supplies. Therefore, it is necessary to determine whether the Association makes ancillary supplies or home medical supplies.
Ancillary supplies
Subsection 259(1) defines an “ancillary supply” to mean
a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or
(b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding.
The Association provides residents with accommodation, meals, nursing and personal care services and other services at the Facility it operates. The supplies do not meet the requirements described in paragraph (a) or (b) of the definition of “ancillary supply”.
Therefore, for the Association to be an external supplier, it must make home medical supplies.
Home medical supply
Subsection 259(1) defines a "home medical supply" to mean an exempt supply (other than a facility supply or a prescribed supply) of property or a service
(a) that is made
(i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability, or providing palliative health care, and
(ii) after a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances, has identified or confirmed that it is appropriate for the process to take place at the individual's place of residence or lodging (other than a public hospital or a qualifying facility),
(b) in respect of which the property is made available, or the service is rendered, to the individual at the individual's place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances,
(c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and
(d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier in respect of the supply.
For an exempt supply to be a home medical supply, paragraph (c) indicates that all or substantially all of the elements of the supply must be health care. As the nursing services provided to residents are part of a supply of accommodation, meals, and personal care, this supply has a significant element of property or services that are not health care. Therefore, the supply made by the Association is not a “home medical supply”.
The exempt supplies made by the Association to residents at the Facility are not facility supplies, ancillary supplies or home medical supplies. Therefore, the Association is not a hospital authority, facility operator or an external supplier and as such, is not entitled to claim the 83% PSB rebate on property and services it acquires in its operation of the Facility. As a registered charity, the Association is entitled to claim a 50% of the GST and the federal part of the HST and, effective July 1, 2010, as a charity resident only in Ontario, may also be entitled to an 82% rebate of the provincial part of the HST, subject to the rules for that particular rebate.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-7952. 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,
Alison Jones LL.B
Municipalities and Health Care Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
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