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.
Date : January 20, 2014
To: [Addressee]
From: Christiana De Benedetti
Rulings Officer
Services and Intangibles Unit,
General Operations and Border Issues Division
320 Queen Street Ottawa ON
K1A 0L5
Case: 126633
Subject: GST/HST Interpretation
FCTIP-Incentive Travel
We are writing in response to your [correspondence] of [mm/dd/yyyy] concerning whether particular meetings held in […][City 1] and […][City 2], […][Province X] by […][Company A] qualify as a foreign convention for purposes of claiming a rebate under the Foreign Convention and Tour Incentive Program (FCTIP). […].
All references are to the Excise Tax Act (ETA) unless otherwise stated.
The following documents were submitted for our consideration:
* Form GST386, Rebate Application for Foreign Conventions, on which [Company A], a non-resident located in […][Country Z] claimed a FCTIP rebate of $[…] as the organizer of a foreign convention. The form was received by the Canada Revenue Agency (CRA) on [mm/dd/yyyy].
* The invoices for all the meals and activities that took place during this event. According to the rebate form, there were separate hotel accommodations purchased for this event. The invoices for the hotel accommodations were not included.
* A letter from [Company A] describing the purpose of the meetings. According to the letter, the purpose of the meetings was for the attendees, who were all non-resident […] [employees] of […][Company B], to be rewarded by [Company B] with a trip to [City 1] and [City 2] , where they will network in an informal way, and have an awards dinner where next year’s sales targets are discussed. [Company B] is not resident in Canada and is not registered for GST/HST purposes.
* The program agenda of the meetings that took place in [City 1] and [City 2]. The program agenda indicates that the following activities took place over the period from [mm/dd] to [mm/dd/yyyy]:
* Arrival in [City 1] on […] [Day 1]
* [Day 2] […] [describes included tours, networking lunch and dinner] .
* [Day 3] […] [describes included tours, networking lunch and dinner].
* [Day 4] Travel to [City 2]. […] [describes included tours, networking dinner].
* [Day 5] […] [describes included tours, award dinner] .
* [Day 6] Departure from [City 2] […].
[…][Interpretation Given]
In order for an event to qualify as a foreign convention for purposes of the FCTIP, it must first be established that the event is a convention for GST/HST purposes.
Subsection 123(1) defines “convention” as 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.
As indicated, to meet the definition of “convention”, an event has to be a formal meeting or assembly. Generally, a “formal meeting or assembly” can be regarded as a gathering of people that is organized and structured (i.e., planned in advance and with an agenda) and held for a specific, identified purpose (e.g., for the exchange of information or to discuss and make decisions regarding issues and concerns of interest to the group). In addition, the principal purpose of the meeting or assembly must not be to engage in any of the activities described in paragraphs (a) to (c) of the definition of “convention”. Of particular relevance in the circumstances, the meetings organized by [Company A] would not meet the definition of convention if it is established that the principal purpose of the meetings was to provide any type of amusement, entertainment or recreation.
Based on the information provided, the purpose of the meetings was for [Company B] to reward their [employees] with a trip […]. Furthermore, because the majority of the activities on the program agenda are amusement, entertainment or recreational in nature, it is our opinion that the principal purpose of the meetings is to provide amusement, entertainment or recreation. Therefore, the meetings do not qualify as a convention, and [Company A], as the organizer, is not entitled to a rebate under the FCTIP.
Please do not hesitate to contact me at 613-952-8814 if you have any questions.
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