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.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 20th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 128775
November 18, 2010
Dear [Client]:
Subject:
EXCISE INTERPRETATION
Part 1 Tax on Insurance
Thank you for your letter of September 17, 2010 requesting a written interpretation of the application of Part 1 of the Excise Tax Act (ETA).
All legislative references are to the ETA and the regulations therein, unless otherwise specified.
Statement of Facts
From your letter our understanding of the facts are as follows:
1. Consumer from Alberta or Ontario purchase insurance from a British Columbia (BC) insurer.
2. The BC insurer is authorized in the province of British Columbia only, and not in any other province.
From your follow up fax of November 3rd responding to our questions put forth in a phone conversation:
1. The broker is domiciled in Canada, licensed in all provinces and territories in Canada.
2. The subject is property insurance.
3. The properties are located in various parts of Canada.
Interpretation Requested
You would like to know if the example above would trigger the Part 1 tax on insurance premiums under the ETA.
Interpretation Given
Based on the information provided, the contract of insurance would not be subject to the Part 1 tax on insurance premiums of the ETA.
The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Goods and Services Tax Rulings, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the ETA, regulations, or our interpretative policy could affect this interpretation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613)952-0048.
Yours truly,
Michael Ryder
Softwood Lumber and Other Taxes Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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