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
Case Number: 185770
Business Number: […]
[Addressee]
Dear [Client]:
Subject: GST/HST RULING
Non-resident insurer's eligibility to register for GST/HST
Thank you for your letter concerning the eligibility of […] (YCo) to voluntarily register for goods and services tax/harmonized sales tax (GST/HST). YCo previously requested GST/HST registration and was denied. You have now provided additional documentation.
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, we understand the following:
1. YCo, […], is a non-resident insurer.
2. […]
3. You advised that YCo has a Canadian branch through which it supplies […] insurance policies and it began operations at its Canadian branch on [mm/dd/yyyy]. The Office of the Superintendent of Financial Institutions of the Government of Canada approved the insuring in Canada of risks by the company under the name YCo under the class of […] insurance.
4. You advised that YCo’s Chief Agent, whose responsibilities include the oversight and management of operations of the YCo’s Canadian branch, works from YCo’s […][Province 1] offices. YCo’s other staff work in [Province 1] and […][Province 2] offices.
5. YCo previously requested GST/HST registration and was denied. The additional documentation you provided is […] […](the Service Agreement) […][describes certain terms of the agreement].
6. […]. The Service Agreement provides that the parties are engaged […] in the provision of […] services […]. The services provided by each party are described in Appendix […] which include […]. Section […] of the Service Agreement provides that the consideration for the supply is based on the […] party’s costs charged to the other party for performing the services.
7. Section […] of the Service Agreement provides that at the end of each financial year [mm/dd - mm/dd], the parties will calculate their total fee and […] payments will be made amongst the parties within […][period of time]. […][Terms of the agreement].
8. You indicated that the […] activity (Administrative Services) of YCo’s Canadian branch to each of the […] parties under the Service Agreement consists of […]
9. You indicated that the work relating to the provision of the Administrative Services is provided by YCo’s Canadian branch under the Service Agreement and is performed by YCo’s personnel in YCo’s offices in Canada.
10. You advised that, on [mm/dd/yyyy], YCo was not a small supplier under section 148 […].
RULING REQUESTED
You are requesting a ruling that YCo is eligible for voluntary registration for GST/HST.
RULING GIVEN
Based on the facts set out above, we rule that, under the Service Agreement, YCo is making taxable supplies of the Administrative Services in Canada. YCo was required to be registered for GST/HST effective [mm/dd/yyyy].
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 given in this letter provided that: none of the issues discussed in the ruling 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.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (780) 495-6518. 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,
Heather Gibbard
Insurance and ITC Allocation Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate
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