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: 155042
Dear [Client]:
Subject: GST/HST INTERPRETATION
[…] [FCTIP – Foreign Convention]
Thank you for your [correspondence] of December 17, 2012, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to […][the Event].
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island and 15% in Nova Scotia. 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 your [correspondence] of [mm/dd/yyyy], documents you submitted on [mm/dd/yyyy], and [website] information […], we understand the following:
1. […]. The […][Organization]’s head office is located in […][Country X].
2. […] [Describes structure of the Organization]
3. […] [Describes roles of members]
4. The mission of the [Organization] is […] [educational]. The [Organization] achieves this mission by: […]
5. […] [Describes educational objectives of the organization]
6. [The Organization] […][arranges] a number of different events […] including [the Event] which generally takes place every […].
7. [The Event] is an official educational event of the [Organization]. […].
8. [The Event] took place in Canada from [mm/dd/yyyy]. [The Event] was based out of […]([…][the Key Venue]), […] in […][City 1, Province A], but events and activities also took place in […][Other Canadian Cities]. […].
9. […] [Describes organizational & registration details]
10. […] [Describes what is included in the registration fees]. Registration fees were payable to [the Event].
11. [The Event] was organized with the possibility of up to [#] attendees of which up to […][20%] could be Canadian residents. As of [mm/dd/yyyy], [#] participants and staff members […] had registered for [the Event]. Of the [#] individuals registered, […][approximately 4%] were Canadian residents.
12. The goals of [the Event] were to: […]
13. The educational objectives of [the Event] were to: […]
14. Individual participants chose […] for the […] portion of [the Event]. […].
15. […]
16. The schedule for [the Event] […] [was] as follows: […]
17. [The Event] was officially opened […]. After the official opening, participants […] were transported by bus to [the Key Venue] […]. At [the Key Venue] there was a welcome dinner, opening ceremonies, and a concert. The goals and objectives of [the Event] were articulated to the participants during these opening activities.
18. While at [the Key Venue], participants […][describes activities]
19. The outdoor and adventure activities gave participants the opportunity to take part in various activities […]
20. The following outdoor and adventure activities were available: […]
21. […] [More information about available educational activities]
22. […] [Other activities] included workshops, manned booths, and special activities. […]
23. The […] portion of [the Event] provided participants with the opportunity to […] while discovering […][a Canadian City] through […] activities. […].
24. […]
25. Closing activities and celebrations took place at [the Key Venue]. Participants had the opportunity to perform a personal assessment of the objectives set for [the Event] and to evaluate the effectiveness of the event. Participants departed from [the Key Venue] at the end of [the Event].
[…][INTERPRETATION REQUESTED]
You would like to know if [the Event] is a foreign convention for purposes of the Foreign Convention and Tour Incentive Program (FCTIP).
[…][INTERPRETATION GIVEN]
Based on the facts set out above, it is our opinion that [the Event] is not a convention and therefore is not a foreign convention for purposes of the FCTIP.
EXPLANATION
Under the FCTIP, a rebate is available to the sponsor of a foreign convention held in Canada with respect to the GST/HST paid on certain properties and/or services used in the course of the convention.
As defined in subsection 123(1), a “foreign convention” means a convention
(a) at least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to non-resident persons, and
(b) the sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are non-resident.
A “convention” means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is
(a) to provide any type of amusement, entertainment or recreation,
(b) to conduct contests or games of chance, or
(c) to transact the business of the convenor or attendees
(i) in the course of a trade show that is open to the general public, or
(ii) otherwise than in the course of a trade show.
The expression "to transact the business of the convenor or attendees" is not defined in the ETA. Administratively, it is interpreted to mean conducting or carrying out the operation or management of a business. This includes, for example, business meetings that the convenor or attendees would normally conduct at their place of business, such as sales meetings, board of directors meetings, or contract negotiations.
[…]. [The Organization] engages in various activities […] in order to achieve its educational goals, with [the Event] being one such activity. Since the principal purpose of [the Event] is to provide a program to assist in the achievement of these educational goals, the principal purpose of [the Event] is to conduct the business of the [Organization].
Subparagraph (b)(ii) of the definition of “convention” in subsection 123(1) of the ETA excludes a meeting or assembly, the principal purpose of which is to transact the business of the convenor or attendees otherwise than in the course of a trade show. As [the Event] is not a trade show and its principal purpose is to conduct the business of the [Organization], it does not qualify as a convention and is therefore not a foreign convention for purposes of the FCTIP.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 604-658-8528.
Yours truly,
Rosalind Erceg
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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